The high
cost and sketchy reliability of electricity supplies in the Philippines are now
the main deterrents to investing in the country, according to foreign business
leaders who see the problem as a persuasive reason to invest elsewhere. In
addition, the power grid network also needs enhancements to avoid regular
rolling blackouts and the government is working on adding more capacity and
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 the country energy crisis.
The
Philippines are the only country in South-East Asia that does not subsidize electricity companies and the generating capacity per capita is also relatively
low – roughly 5 times lower than Malaysia and Thailand. The Philippines electricity prices at cost of
18.2 USc/kWh for industrial supply in 2012 are some of the highest in Asia and
then considering GDP per capita of US$2,600, the prices become
prohibitive.
Read the complete Philippines high electricity price analysis.
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