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

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.