In the recent years, the Philippines is making a significant stride to become energy independent by developing more sustainable sources of energy. Considering the current share of imported coal for electricity generation at 75% of total supply, the country's security of energy supply has been vulnerable to sudden changes in prices of coal. Renewable energy is seen as a promising alternative to suffice the country's energy needs. In 2015, renewable energy accounts 25% of the country's total energy generation mix, mostly from geothermal and hydropower (DOE 2016). The country is aiming to increase this capacity to 60% of the generation mix by 2030 by developing localized renewable energy resources (DOE 2012). However, investment in renewable energy is challenged by very high start-up cost, immature technology, and competitive prices of fossil fuels. It is therefore important to make a study that analyzes the attractiveness of renewable energy investments to address the country's concern on energy sufficiency and sustainability.
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