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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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    11. 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.
    12. 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.
    13. 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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