National Renewable Energy Program (NREP) 2020-2040

The National Renewable Energy Program (NREP) 2020-2040 is the Philippines’ long-term program for accelerating renewable energy development and utilization, adopted on 19 July 2022. It serves as the national framework for achieving the country’s RE share targets in the power generation mix [PEP 2023-2050 Vol. II, p.40, 2023].

Targets

These targets are aligned with and embedded in the Philippine Energy Plan 2023-2050. The PEP extends the horizon to 2050 with a target of more than 50% RE share. See Renewable Energy Targets 2023-2050 .

Key Policy Mechanisms Under NREP

The NREP serves as the umbrella framework for several implementing policies and programs:

• Renewable Portfolio Standards (RPS): Mandatory RE sourcing obligation for distribution utilities and retailers. Annual increment raised to 2.52% starting 2023 (DC2022-09-0030). Both on-grid (DC2023-05-0015) and off-grid (DC2023-05-0014) rules promulgated 2023. See Renewable Portfolio Standards (RPS) .
• Green Energy Auction Program (GEAP): Competitive procurement of RE capacity through periodic government-run auctions. GEA-1 (June 2022) = 1,866 MW; GEA-2 (July 2023) = 3,441 MW. See Green Energy Auction Program (GEAP) .
• Green Energy Option Program (GEOP): Allows 100 kW+ consumers to source directly from RE suppliers. 286 customers, 96.3 MW as of Dec 2023. See Green Energy Option Program (GEOP) .
• Net Metering Program: Allows prosumers up to 100 kW to export surplus solar generation. 11,707 end-users, 101.5 MWp as of Dec 2023. See Net Metering Program .
• Feed-in-Tariff (FiT) System: Guaranteed tariff for run-of-river hydro; target raised to 350 MW; 174.63 MW still unsubscribed as of Dec 2023. See Feed-in-Tariff (FiT) System .
• Renewable Energy Market (REM): Interim commercial operations declared June 2022 (DC2022-06-0019). RE Certificates (RECs) issued to support RPS compliance. See Renewable Energy Market (REM) .
• RE Trust Fund (RETF): Funds sourced from PNOC, PAGCOR, PCSO, and energy service contractor government shares. DC2022-06-0018 covers fund management. Potential MOA with DOST for operationalization. See Renewable Energy Trust Fund (RETF) .

RE Resource Development Accomplishments (as of 2023)

As of September 2023, the DOE has awarded 1,141 RE Service Contracts with [PEP 2023-2050 Vol. II, p.40, 2023]:

• Total potential capacity: 121.0 GW
• Installed capacity: 5.7 GW
• Variable RE (solar and wind): 88.7% of potential (107.3 GW)
• 81 Offshore Wind (OSW) contracts: 62.2 GW potential (as of Dec 2023)

NREP Update (2023-2050)

The DOE has committed to promulgating an updated NREP 2023-2050 to align with the updated planning horizon and integrate new programs including the Expanded Roof-Mounted Solar Program (ERSP) and the Offshore Wind Policy and Administrative Framework [PEP 2023-2050 Vol. II, Figure 10, 2023]. See Expanded Roof-Mounted Solar Program (ERSP) .

Formulation and Adoption

The NREP 2020-2040 was formulated by the DOE in coordination with the National Renewable Energy Board (NREB), with technical assistance from the DREAMS Project (Development for Renewable Energy Applications Mainstreaming and Market Sustainability) — funded by the Global Environment Facility (GEF) and UNDP. A national public consultation was held on 18 March 2021 with over 400 stakeholder participants [NREP 2020-2040, p. xiii, 2022].

The NREP was adopted on 19 July 2022, following its presentation and public consultation. It builds on the first NREP 2011-2030 and integrates developments in the RE sector from 2011-2021.

Five RE Goals

The NREP 2020-2040 articulates five overarching goals for RE development [NREP 2020-2040, p.15, 2022]:

1. Energy Security — reduce dependence on imported fossil fuels; reduce exposure to international price fluctuations and exchange rate volatility
2. Sustainable Development — aligned with AmBisyon Natin 2040, Philippine Development Plan, and SDG 7 (Affordable and Clean Energy)
3. Climate Change Mitigation — supports the NDC commitment of 75% GHG reduction vs. BAU (submitted 15 April 2021); energy sector = 59% of national GHG (2019)
4. Capacity Building — advances technical knowledge, R&D, distributed generation, energy storage, and smart grid capabilities
5. Inclusive Growth — RE/hybrid adoption in off-grid and missionary areas; local investment and job creation

RE Outlook 2021-2040 (NREP Model)

The NREP’s PLEXOS® model projects that the following new-build capacities are needed to meet the 35%/50% targets [NREP 2020-2040, Tables 5-6, pp.20-21, 2022]:

Total installed capacity required by 2040: ~102,231 MW (from ~28,000 MW in 2020).

Important caveat: The NREP 2020-2040 PLEXOS model did NOT include BESS , nuclear, offshore wind , hydrogen, fuel cell, or ocean as new build options — these were classified as emerging technologies at the time. The subsequent PEP/PDP 2023-2050 scenarios add these at scale (e.g., CES-1: 19 GW OSW; CES-2: 50 GW OSW). The NREP 2020-2040 outlook is therefore a floor, not a ceiling.

Generation mix trajectory (RE share):

• 2021: 22% | 2025: 28% | 2030: 35% | 2035: 43% | 2040: 50%

Coal stays high in absolute GWh through 2035 before declining; natural gas grows significantly as a bridging fuel [NREP 2020-2040, Table 6, p.21, 2022].

RE Facilities Inventory (as of 2021)

The NREP 2020-2040 Annex (Tables 16–23) documents all RE facilities commissioned under the RE Act and pre-existing legacy plants [NREP 2020-2040, Tables 16-23, pp.66-87, 2022]:

Hydro legacy (3,543 MW) = 904 MW with service/operating contracts (HEDCOR, SN Aboitiz, First Gen) + 2,639 MW without contracts (PSALM Agus cascade 746 MW + Pulangi IV 255 MW; CBK Power Kalayaan pumped-storage 736 MW + Botocan 23 MW + Caliraya 35 MW; San Roque Power 411 MW; Angat Hydropower Corp 246 MW; Casecnan 165 MW). Geothermal legacy operators: AP Renewables (Tiwi + Mak-Ban), EDC (Tongonan + Palinpinon + Mt. Apo), Green Core Geothermal.

NREP 2011-2030 Performance Summary

The NREP 2020-2040 opens with an assessment of the first NREP (2011-2030) [NREP 2020-2040, Ch. I, pp.1-13, 2022]:

• 2019 actual installed RE: 7,399 MW vs. 2030 target of 15,304 MW (~48%)
• RE share declined from 26% (2010) to 21% (2019) as coal grew from 34% to 55% of generation
• Only solar and biomass exceeded their addition targets; geothermal added only 83 MW vs. 1,495 MW target
• Despite shortfalls: PhP 217B RE investments, 168,400+ jobs, 17.13M tons CO2 avoided

Off-Grid and Productive Use Strategies

NREP Section 3 covers off-grid programs targeting the ~1.2 million unelectrified households (6% of 22.9M HHs as of December 2020) [NREP 2020-2040, p.47, 2022]:

• 3.1 Expanded Household Electrification — NEA PV Mainstreaming Program: Solar Home Systems (50Wp panel + 24Ah battery + 4 LED bulbs) to isolated HHs; >5,000 HHs served; EU-ASEP supported
• 3.2 REPAFS — DOE-DA MOA (6 August 2020): Renewable Energy Program for Agriculture and Fisheries Sector; 5 components: RE promotion, R&D, standards, HRD, local manufacturer support; under finalization as of 2022
• 3.3 PURE — Productive Uses of RE: livelihood systems and social services in off-grid areas (cold storage, streetlights, water pumps); ASEP implemented 4 PURE projects (Table 13); DREAMS SF4RE-funded projects listed in Table 14
• 3.4 SF4RE — USD 1M DREAMS sub-facility; 17 approved projects (mini-hydro, solar PV, potable water systems, bioethanol distillers) covering rural electrification, PURE, social services, and climate resiliency; see DREAMS Project (Development for RE Applications Mainstreaming and Market Sustainability)
• 3.5 Microgrids — RA 11646 (Microgrid Systems Act, January 2022): RE hybrid mini-grids provide 24/7 service; examples: ROMELCO Cobrador Island (tariff halved PhP30→PhP15/kWh; 161→260 HHs), ANTECO Malalison Island; NPC planned 1.2MW new RE-hybrid mini-grids + 595kWp solar retrofit in 4 sites; see Digest: RA 11646 — Microgrid Systems Act of 2022 and Microgrid Policy and Off-Grid Electrification

Off-grid electricity supply rationalized by DC2019-01-0001 (25 January 2019) — Omnibus Guidelines on Off-Grid Power Development: prescribes phasing out UC-ME via alternative funding mechanisms including annual NPC appropriation [NREP 2020-2040, pp.47-48, 2022].

Resource-Specific Programs

NREP Section 4 covers strategies for specific RE technologies [NREP 2020-2040, pp.54-57, 2022]:

• 4.1 Offshore Wind — WBG-DOE “Offshore Wind Roadmap” (20 April 2022); 30 WESCs awarded (20.81 GW aggregate) as of March 2022; Carbon Trust Philippine Offshore Wind JIP (priorities: Marine Spatial Planning, permitting/consenting, grid integration); see Offshore Wind (OSW)
• 4.2 Waste-to-Energy — DC2022-02-0002 (17 February 2022): REC eligibility for biomass WTE, minimum 20-year DU-WTE PSA, CSP exemption for WTE; DOE to conduct nationwide WTE viability study; see Waste-to-Energy (WTE)
• 4.3 ERSP — Under study as of 2022: business models explored include capacity aggregation and peer-to-peer WESM trading; formal framework issued December 2023 (DC2023-12-0035); see Expanded Roof-Mounted Solar Program (ERSP)
• 4.4 FTAA for Geothermal — 100% foreign ownership permitted for large-scale geothermal projects under FTAA if initial investment ≥ USD 50M; exploration costs ~USD 6M/well (20-30% success rate); OCSP is the required award mechanism; see Digest: RA 9513 — Renewable Energy Act of 2008 Section 9
• 4.5 Emerging RE — Ocean/tidal: NAMA Facility grant (steering: DOE + CCC + Frankfurt School); Hydrogen: HFEC established via SO 2020-11-0041; initial study identifies green hydrogen from RE as primary pathway; 2 MOUs with Australian and Japanese companies; see Hydrogen and its Derivatives

Legislative Basis

The NREP is rooted in the Renewable Energy Act of 2008 (RA 9513), which established the policy framework for indigenous and renewable energy development in the Philippines. The DOE is mandated under Section 6 of RA 9513 to prepare and update the National Renewable Energy Program.