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Potentials and challenges in implementing feed-in tariff policy in Indonesia and the Philippines

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  • Bakhtyar, B.
  • Sopian, K.
  • Zaharim, A.
  • Salleh, E.
  • Lim, C.H.

Abstract

Located in Southeast Asia, Indonesia and the Philippines are characterized by a tropical climate and high amounts of rainfall that render their high potential for hydro-power and wind energy deployment. The volcanic geography of both countries also indicates their high geothermal potential compared with that of other countries, and their high solar radiation level makes them suitable areas to establish power plants. The present study is an archival-statistical overview of the potential generation of renewable energy in Indonesia and the Philippines and the implementation of the Feed-in-tariff (FiT) policy. This research focuses on the challenges encountered by politicians and policymakers and confirms the insufficient production of energy from wind, solar, and bio-gas sources despite the potential and the attempts to deploy FiT. Results show that the role of the government in providing support to investors is not clear in both countries. In addition, inflation rates have not been calculated. However, FiT has benefitted both countries by preventing degression during the primary years.

Suggested Citation

  • Bakhtyar, B. & Sopian, K. & Zaharim, A. & Salleh, E. & Lim, C.H., 2013. "Potentials and challenges in implementing feed-in tariff policy in Indonesia and the Philippines," Energy Policy, Elsevier, vol. 60(C), pages 418-423.
    • Handle: RePEc:eee:enepol:v:60:y:2013:i:c:p:418-423
    DOI: 10.1016/j.enpol.2013.05.034
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    1. Lidula, N.W.A. & Mithulananthan, N. & Ongsakul, W. & Widjaya, C. & Henson, R., 2007. "ASEAN towards clean and sustainable energy: Potentials, utilization and barriers," Renewable Energy, Elsevier, vol. 32(9), pages 1441-1452.
    2. World Bank, 2012. "World Development Indicators 2012," World Bank Publications - Books, The World Bank Group, number 6014.
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    2. Wong, S.L. & Ngadi, Norzita & Abdullah, Tuan Amran Tuan & Inuwa, I.M., 2015. "Recent advances of feed-in tariff in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 42-52.
    3. Botelho, D.F. & de Oliveira, L.W. & Dias, B.H. & Soares, T.A. & Moraes, C.A., 2022. "Prosumer integration into the Brazilian energy sector: An overview of innovative business models and regulatory challenges," Energy Policy, Elsevier, vol. 161(C).
    4. Ismail, Abdul Muhaimin & Ramirez-Iniguez, Roberto & Asif, Muhammad & Munir, Abu Bakar & Muhammad-Sukki, Firdaus, 2015. "Progress of solar photovoltaic in ASEAN countries: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 399-412.
    5. Sumabat, Ana Karmela & Lopez, Neil Stephen & Yu, Krista Danielle & Hao, Han & Li, Richard & Geng, Yong & Chiu, Anthony S.F., 2016. "Decomposition analysis of Philippine CO2 emissions from fuel combustion and electricity generation," Applied Energy, Elsevier, vol. 164(C), pages 795-804.
    6. Aoqi Xu & Lilik Jamilatul Awalin & Ameer Al-Khaykan & Habib Forootan Fard & Ibrahim Alhamrouni & Mohamed Salem, 2023. "Techno-Economic and Environmental Study of Optimum Hybrid Renewable Systems, including PV/Wind/Gen/Battery, with Various Components to Find the Best Renewable Combination for Ponorogo Regency, East Ja," Sustainability, MDPI, vol. 15(3), pages 1-15, January.
    7. Mouton, Morgan, 2015. "The Philippine electricity sector reform and the urban question: How metro Manila's utility is tackling urban poverty," Energy Policy, Elsevier, vol. 78(C), pages 225-234.
    8. Farida Hanum & Masanori Nagahata & Tjokorda Gde Tirta Nindhia & Hirotsugu Kamahara & Yoichi Atsuta & Hiroyuki Daimon, 2023. "Evaluation of a Small-Scale Anaerobic Digestion System for a Cattle Farm under an Integrated Agriculture System in Indonesia with Relation to the Status of Anaerobic Digestion System in Japan," Sustainability, MDPI, vol. 15(4), pages 1-15, February.
    9. Setiawan, Andri D. & Dewi, Marmelia P. & Jafino, Bramka Arga & Hidayatno, Akhmad, 2022. "Evaluating feed-in tariff policies on enhancing geothermal development in Indonesia," Energy Policy, Elsevier, vol. 168(C).
    10. Maung Aung Myoe, 2015. "Myanmar’s China Policy since 2011: Determinants and Directions," Journal of Current Southeast Asian Affairs, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 34(2), pages 21-54.
    11. Maulidia, Martha & Dargusch, Paul & Ashworth, Peta & Ardiansyah, Fitrian, 2019. "Rethinking renewable energy targets and electricity sector reform in Indonesia: A private sector perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 101(C), pages 231-247.
    12. Chang, Youngho & Fang, Zheng & Li, Yanfei, 2016. "Renewable energy policies in promoting financing and investment among the East Asia Summit countries: Quantitative assessment and policy implications," Energy Policy, Elsevier, vol. 95(C), pages 427-436.
    13. Matthew S. Winters & Matthew Cawvey, 2015. "Governance Obstacles to Geothermal Energy Development in Indonesia," Journal of Current Southeast Asian Affairs, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 34(1), pages 27-56.
    14. Bakhtyar, B. & Fudholi, A. & Hassan, Kabir & Azam, M. & Lim, C.H. & Chan, N.W. & Sopian, K., 2017. "Review of CO2 price in Europe using feed-in tariff rates," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 685-691.

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