Philippines Energy

Unprecedented levels of Chinese demand for nickel ore has created a sizeable market opening for the Philippines to expand nickel exports, prompting the country to re-examine the underdeveloped minerals industry and maximise output amid a dearth of supplies in the region. 

Hopes of a path towards energy independence in the Philippines are gathering pace thanks to encouraging steps forward at the Malolos-1 onshore well in Cebu. Australian oil firm Gas2Grid said in July it is in the process of applying to the Department of Energy (DoE) to increase production for a full appraisal of the field.

A new incentives programme to be rolled out across the Philippines next year is expected to help the government boost the renewables sector, while also meeting rising domestic demand for power.

A drive to reduce electricity shortages in the Philippines will see the country set out to become the largest geothermal energy producer in the world in line with efforts to increase its focus on renewable energy sources.

A new mining policy in the Philippines is intended to bring greater regulatory clarity to the sector and is an important step towards unfreezing the current hiatus in an industry that has huge potential. However, until a new revenue-sharing bill for the sector – which will likely raise taxes on mining operations – is implemented, no new contracts will be awarded.

News that the Philippines is set for higher electricity prices this year has sparked protest from legislators and consumers alike, but the rate increases could actually foretell their eventual decline as the segment increases its efficiency.