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

• Published in: Energy policy Vol. 60; pp. 418 - 423
• Main Authors: Bakhtyar, B., Sopian, K., Zaharim, A., Salleh, E., Lim, C.H.
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier Ltd 01.09.2013; Elsevier; Elsevier Science Ltd
• Subjects: Alternative energy sources; Applied sciences; biogas; Climate; Economic conditions; Economic data; Economic forecasts; Electric energy; Energy; Energy economics; Energy policy; Exact sciences and technology; Feed in tariff; General, economic and professional studies; Geography; Indonesia; Inflation; Investors; issues and policy; Natural energy; Philippines; Policy making; Politicians; Power plants; Production; Radiation; rain; Rainfall; Renewable energy; Renewable energy sources; solar radiation; Southeast Asia; Studies; Tariff; Tariffs; tropics; water power; wind; Wind power; Philippines; Indonesia; Asia; Southeast Asia; Feed in tariff; Renewable energy; Energy policy; Incentive; Obstacle; Electricity; Distribution by sources; Tariff; Production capacity; Electric power production
• ISSN: 0301-4215; 1873-6777
• DOI: 10.1016/j.enpol.2013.05.034

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. •Both countries are unsuccessful in finalizing a fixed Feed-in-tariff payment.•Both have the same aims from FiT but they have different mechanisms.•The Philippines has shown good ability in managing geothermal energy.•Indonesia's energy generation from biomass is better managed than the Philippines.•Both do not have significant energy production from the wind, solar and biogas.