Evaluating the Feed-in Tariff Policy in the Philippines
ASOG WORKING PAPER 20-004
25 Pages Posted: 10 Feb 2020
Date Written: January 16, 2020
In order to address the challenges of energy security and climate change, the Philippines enacted the Renewable Energy (RE) Act of 2008 to promote renewable energy. The Philippine Feed-In Tariff (FiT) policy was designed to provide a guaranteed fixed price to RE investors for a period of twenty (20) years to develop renewable technology. The objective of this paper is to evaluate the effectiveness of the FiT policy in promoting renewable energy development in the Philippines by assessing its costs and benefits. Data show that while the FiT led to the increase in RE generating capacity, the share of renewable energy in the total power generation mix has been declining since 2011. The findings also suggest that the Philippines has incurred a net social cost from its implementation of the FiT.
Keywords: Feed-in Tariff, Electricity, Policy Evaluation, Philippines, Renewable Energy
Suggested Citation: Suggested Citation