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The government has acknowledged that it needs to add around 1,000 MW of new generating capacity every year between now and 2030 if it is to overcome its energy crisis, and it plans to ensure that most of that new supply will come from renewable sources – though it is not yet clear how those targets will be achieved.
The longer it takes, however, the greater the impact it could have not just on the roughly 97 million Filipinos in the country, but also the country’s competitiveness.
While total foreign direct investment for the Philippines hit $2.7 billion in 2013, a big improvement on previous years, it was still dwarfed by Thailand ($16.1 billion) and Malaysia ($11.7 billion).
Indonesia also struggles with infrastructure shortages and a lack of power capacity, but its electricity is far cheaper than the Philippines’. This cost advantage helped Indonesian FDI hit a record $28 billion last year.
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