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Feed‐in‐tariffs and the politics of renewable energy in Indonesia and the Philippines

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  • James Guild

Abstract

The ability of Southeast Asia's largest economies to develop renewable energy sectors is important for the reduction of carbon emissions. A popular policy tool for jump‐starting growth in renewables is feed‐in‐tariffs (FITs), whereby the government pays a long‐term and mutually agreed rate to independent power producers to develop renewable energies such as solar, biomass, wind, and hydropower. Indonesia and the Philippines have both adopted FITs in recent years, and the result has been a strong growth of renewable energy in the Philippines, but not in Indonesia. This difference can be partly explained by variances in policy design and political economic conditions that have impacted policy success. The Philippines enacted a FIT scheme that reflected several best practices in policy design. The political economic conditions of energy markets in the Philippines were also initially more favourable. The variance in these components helps to explain the divergent results of their respective FIT systems.

Suggested Citation

  • James Guild, 2019. "Feed‐in‐tariffs and the politics of renewable energy in Indonesia and the Philippines," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 6(3), pages 417-431, September.
    • Handle: RePEc:bla:asiaps:v:6:y:2019:i:3:p:417-431
    DOI: 10.1002/app5.288
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    Cited by:

    1. Sumarno, Theresia B. & Sihotang, Parulian & Prawiraatmadja, Widhyawan, 2022. "Exploring Indonesia's energy policy failures through the JUST framework," Energy Policy, Elsevier, vol. 164(C).
    2. Yu, Chin-Hsien & Wu, Xiuqin & Lee, Wen-Chieh & Zhao, Jinsong, 2021. "Resource misallocation in the Chinese wind power industry: The role of feed-in tariff policy," Energy Economics, Elsevier, vol. 98(C).
    3. Hengtian Wang & Xiaolong Yang & Xinxin Xu & Liu Fei, 2021. "Exploring Opportunities and Challenges of Solar PV Power under Carbon Peak Scenario in China: A PEST Analysis," Energies, MDPI, vol. 14(11), pages 1-28, May.
    4. Alcorta, Peio & Espinosa, Maria Paz & Pizarro-Irizar, Cristina, 2023. "Who bears the risk? Incentives for renewable electricity under strategic interaction between regulator and investors," Resource and Energy Economics, Elsevier, vol. 75(C).
    5. Do, Thang Nam & Burke, Paul J. & Baldwin, Kenneth G.H. & Nguyen, Chinh The, 2020. "Underlying drivers and barriers for solar photovoltaics diffusion: The case of Vietnam," Energy Policy, Elsevier, vol. 144(C).
    6. Mukisa, Nicholas & Zamora, Ramon & Lie, Tek Tjing, 2021. "Store-on grid scheme model for grid-tied solar photovoltaic systems for industrial sector application: Benefits analysis," Renewable Energy, Elsevier, vol. 171(C), pages 1257-1275.

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