The Policy Measures and Climate Goals to Achieve Sustainable 1

Energy in Albania and the Philippines 2

Rexhina Roçi 1*, and Sharnelle Irish Pareño2, 3

1 Department of Manufacturing and Civil Engineering, Faculty of Engineering, NTNU-Norwegian University of Sci- 4
ence and Technology, 2815 Gjøvik, Norway; rexhinar@stud.ntnu.no 5
2 Department of Manufacturing and Civil Engineering, Faculty of Engineering, NTNU-Norwegian University of Sci- 6
ence and Technology, 2815 Gjøvik, Norway; sharnelp@stud.ntnu.no 7
*Correspondence: rexhinar@stud.ntnu.no 8
9

Abstract: The governments of Albania and the Philippines have been working on regulations and policies to encourage environ- 10
mentally friendly renewable energy generation, as well as guidelines in achieving the climate change goals. Renewables are growing 11
faster and further to achieve an energy transition that meets climate targets, ensures universal access to energy, reduces air pollution, 12
and improves energy security. This paper aims to describe policies imposed by these two countries in terms of renewable energy 13
sources, energy efficiency, and security. Each country is striving hard to meet the goals and develop policies to have sustainable 14
renewable energy. Renewable energy is seen as a good strategy for development, effective and sustainable energy systems that pro- 15
vide reliable and affordable electricity for these two countries. A global energy transition from fossil fuels to renewable energy can 16
reduce climate change, but it may also hinder the ability to achieve some Sustainable Development goals. 17

Keywords: Renewable Energy; Climate Change; Energy Efficiency; Albania; Philippines 18

19

1. Introduction 20

Renewable energy has become an important part of the energy plan as countries continue to expand their energy 21

markets to achieve the goals of energy security and sustainability. Energy production is critical for every country's 22

economic and industrial development as well as boosting welfare levels. Energy is now seen as a strategic commodity 23

that helps shape global economics and politics, in addition to being an important component of the production 24

function. Countries all around the world are facing huge challenges as a result of environmental and supply security 25

concerns, leading in energy mix shifts. Over the previous ten years, both strengthened institutional frameworks and 26

economic policy measures have confirmed the increased intensity of renewable energy use. The growth of the renewable 27

energy industry is seen as a solution to the world's energy demands that will also help to attain sustainability. [1]. This 28

study investigates the policy measures, current situation of renewable energy, climate goals and challenges to achieve 29

sustainable energy and energy security in Albania and the Philippines. 30

31
32
1.1 Country Profile 33
34
1.1.1 Albania Overview 35
36
Albania is a small mountainous country in Southeastern Europe on the western side of the Balkan peninsula, with 37
a land area of 28,748 square kilometers (km2). Albania is bordered on the northwest by Montenegro, on the northeast 38
by Kosovo, on the east by North Macedonia, and on the south by Greece. The country's western boundary is formed by 39
a long coastline that runs along the Adriatic and Ionian Seas. 70 percent of Albania's land is mountainous, with an av- 40
erage elevation of 700 meters (m) above sea level. Albania's climate is Mediterranean, with moderate and humid win- 41
ters and hot and dry summers. Rainfall occurs predominantly in the second half of the year 42

Energies 2021, 14, x. https://doi.org/10.3390/xxxxx www.mdpi.com/journal/energies

Energies 2021, 14, x FOR PEER REVIEW 2 of 16

across the country; however, climate conditions vary greatly amongst agricultural-ecological zones. A strong mari- 43
time impact affects the coastal plains, resulting in a gradient of lower temperatures and reduced precipitation eastwards 44
from the coastline [2]. 45
Albania is a middle-income country that applied to join the European Union as an official candidate in 2014. Al- 46
bania has a population of 2.9 million people (as of 2019), with a 0.4 percent yearly growth rate (2018). Albania's popu- 47
lation is expected to grow to 2.7 million by 2030 and 2.3 million by 2050. Currently, 69.5 percent of the country's popu- 48
lation lives in cities, with that number predicted to rise to 78.2 percent by 2050 [3]. 49
As of 2019, the country's Gross Domestic Product (GDP) was $15.2 billion, expanding at a pace of 2.2 percent per 50
year. [4]. Over the last 30 years, Albania has had remarkable economic progress, rising from the poorest country in 51
Europe in the early 1990s to middle-income status in 2008, with poverty falling by half. However, Albania has been hit 52
by two major shocks: the 2019 earthquake and the COVID-19 pandemic, causing the economy to decline by 10.2 percent 53
in the second quarter of 2020. The government of Albania is pursuing significant structural reforms to enable equitable 54
growth, with the goal of increasing economic productivity and competitiveness, creating more jobs, and improving 55
governance and public service delivery. Improved regional connection and access to regional and global markets, as 56
well as export and market diversification. It can all contribute to foster quicker growth. Prior to the Pandemic, Albania's 57
government was working on a broad-based reform program aimed at ensuring macroeconomic and fiscal stability, 58
financial sector stability, energy reform, social assistance and disability reform, and territorial decentralization. [5] [6] 59
60
1.1.2 Philippines Overview 61
The Philippines is an archipelago composed of 7,107 islands (1,000 of which are inhabited), with a humid climate 62

and a topography of mountainous terrain bordered by narrow coastal plains. [7] It has a total land area of 298,170 square 63

kilometers and a population of 109, 581, 085 people as of 2020 [8]. It is located in the Tropical Cyclone belt and the Pacific 64

Ring of Fire, making it extremely vulnerable to climate-related geological hazards such as around 20 tropical cyclones 65

per year and seismic shocks that occur almost daily, costing the country an average of 0.5 percent of its GDP each year 66

[9] The Philippines has a tropical and maritime climate. It has a relatively high temperature, high humidity, and a lot of 67

rain. It is similar to the climate of Central American countries in many ways. 68

A gross domestic product (GDP) in the Philippines was worth $361.49 in 2020 and is expected to increase up to 69

$373 billion by the end of 2021 [10]. 70

71

2. Materials and Methods 72

In this section, the input and data of the study are described from related literature. This paper compiled the 73

scientific literature on the impact of renewable energy policies and strategies and climate goals toward sustainable 74

energy. First, an overview of countries is described, followed by an overview of the energy sector and energy demand 75

and supply. The following section describes the renewable energies and climate change goals in these two countries. 76

Information and data were gathered from related published papers, databases, reports, and statistics. Various keywords 77

and database sources were used in the search for literature. Keyword combinations were used to find studies. 78

(Renewable Energy in Philippines and Albania, Climate Goals, Energy Demand and Supply, Challenges in RE). The 79

search platforms that were used were Google Scholar, Oria NTNU, Science Direct, Springer, Web of Science, Elsevier, 80

and ResearchGate. 81

A total of 108 sources were found, including research papers, electronic sources, websites, and books. Out of 82

108 sources, only 40 papers were cited in this paper due to their relevance to the topic. This research reviewed different 83

reliable data sources, such as DOE (Department of Energy), International Renewable Energy Agency, Asian Develop- 84

ment Bank, World Bank Group, and UNECE. 85

86
Energies 2021, 14, x FOR PEER REVIEW 3 of 16

3. Results 87

3.1. Albania Renewable Energy 88

In Albania, the energy sector is developing more and more, because the government is paying special attention to 89

this sector. Strong and sustained economic growth is a key component of the country's long-term economic and social 90

development plans, and the energy sector is becoming increasingly important in this regard. Establishing energy 91

security, energy sector sustainability, and a reliable energy supply at cost-competitive prices are some of the Albania’s 92

immediate issues. Hydropower accounts for the majority of the country's electrical generation, contributing for about 93

all of Albania's installed power capacity. Albania's energy mix contains one of the largest proportions of renewable 94

energy in South East Europe, yet it is also extremely reliant on yearly rainfall. The associated vulnerability of electrical 95

production to climate externalities causes significant swings in domestic energy production [11]. 96

The significant dependence on hydropower capacity makes the system vulnerable to unpredictable and non- 97

standard weather conditions [1]. As renewable energy generating is mainly based on hydropower, it is also subject to 98

rainfall, which has witnessed significant yearly changes and a continuous decline in recent years. With the effects of 99

climate change, this is projected to decrease even further. Albania has vast solar and wind resources, which are now 100

nearly fully undeveloped, in addition to hydroelectric resources. Albania must expedite the transition to plentiful, 101

affordable, and local renewable energy sources in order to improve energy security and climate resilience, as well as 102

meet growing energy demand [12]. 103

3.1.1 Energy Supply and Demand situation in Albania: 104

Albania has a diverse range of energy resources, including oil and gas, coal, hydropower, natural forest biomass, 105

and other renewable energy sources. The government places a high priority on the continued development of its energy 106

sector. The largest source of supply is oil, which accounts for 64% of total supply, followed by hydroelectricity 107

generation (22%), and fuelwood (12%). The transportation, residential, and industrial sectors consume the most energy 108

in the country, accounting for 44 %, 23 %, and 13 %, respectively. Biomass continues to be the most widely used energy 109

resource in rural areas, primarily as fuelwood and agricultural - biomass for heating and cooking. For heating and 110

cooking, cities rely on electricity and liquid petroleum gas. Hydropower continues to be the country's primary source 111

of renewable electricity generation [6]. 112

Table 1. Renewable energy potential in Albania (source: IRENA 2017; 2020) [11] 113

Economic Potential 2030 Technical Potential 2030

Technology Capacity 2019 [MW]
[MW] [MW]

Hydropower 2105 2150 4 813

PV 3 1074 2378

Wind 7483
0 616

Bioenergy 1 86 1832
Energies 2021, 14, x FOR PEER REVIEW 4 of 16

In table 1, it is shown the Renewable energy potential in Albania, regarding Hydropower, PV, Wind and 114

Bioenergy. There is shown the capacity 2019 in MW, the Economic Potential in the year of 2030 and also the Technical 115

Potential in 2030. Albania has a long way to go in terms of utilizing renewable energy sources. When we look at 116

hydropower, estimations predict that by 2030, the total installed capacity of hydropower will be 2 150 MW, which will 117

meet a 48 % renewable energy share of gross final energy consumption [1]. The Albania's geographic location is ideal 118

for harnessing solar energy, with an average of 220 bright days a year. According to the International Renewable Energy 119

Agency [11] solar energy plants with a capacity of 10 MW were implemented in 2018. The second solar PV auction was 120

held in 2020, at a price of around 25 EUR/MWh. A total of 140 MW of solar power is planned. Half of that amount will 121

be sustained for 15 years under an offtake agreement, while the other half will be allocated through the market [1]. The 122

implementation of a 150 MW tender launched at the end of the previous year will exploit certain areas of potential in 123

wind energy. Eligible projects must be between 30 and 75 MW [13]. Biomass has always been utilized for heating in 124

Albania because it is the most cost-effective option. According to the Energy Community Secretariat, Albania's 125

renewable energy sector implementation is reasonably progressed, with a 59 % implementation level. Albania is 126

anticipated to enhance its legal framework, pass legislation on renewable energy sources, and streamline procedures 127

and bureaucracy [1]. 128

3.1.2 Renewable Energy Policies 129

Wind, solar, hydro, biofuels, and other future renewable energy sources are at the heart of the energy transition 130
toward a less carbon-intensive and more sustainable energy system. The responsible ministry and its subordinate 131
institutions have approved the "National Energy Strategy 2018-2030," which consists of six possible scenarios for 132
energy's transition process toward sustainable and reliable energy by shifting Albania to a decentralized renewable 133
energy market and energy efficiency, in order to reduce electricity imports, improve security of supply, and achieve the 134
goals of Paris Agreement. According to this policy, renewable energy sources should account for 42 percent of total 135
energy consumption by 2030, but their current contribution is under 30 percent. The first goal can be realized by 136
integrating RES capacities on a broad scale, particularly wind and PV generation capacity [14]. 137

Under the strain of rising environmental awareness, technological advancement, and energy market liberalization, 138

Albania has made rapid progress in the development of renewables energies technologies in the last 15 years [14]. The 139

National Strategy 2018-2030 is also focusing in the development of the Renewable Energies. The analysis of future 140

development paths for the energy sector in Albania was carried out using the LEAP model, a proven energy model, 141

previously used by the Albanian government, and commonly used by other countries in the region and globally. The 142

LEAP model was calibrated with the official energy balance in 2014, updated with energy data for 2015 and 2016, where 143

applicable, and a series of scenarios were implemented by 2030 for this analysis [15]. 144

The baseline scenario serves as a reference for comparing each energy strategy scenario that will seek to achieve 145

specific energy policy goals. The renewable energy scenario is based on Albania's obligations as a Contracting Party to 146

the Energy Community Treaty to comply with EU directives on the promotion of renewable energy sources. The RES 147

scenario includes increasing the share of renewable sources to 38% of total final energy consumption by 2020, which 148

should be further developed by 2030. Only this renewable energy (RES) scenario achieved and maintained the target 149

by 2020. It had an impact on reducing electricity and imports of by-products [15]. 150

3.1.3 Renewable Energy Implementation: 151

Albania decided in February 2021 to extend the revised National Renewable Energy Action Plan (NREAP) and 152

the 2020 renewable objective to the end of 2021, in order to bridge the gap until 2030 targets are implemented. Albanian 153
Energies 2021, 14, x FOR PEER REVIEW 5 of 16

law allows consumers with installed capacity of up to 500 kW to participate in a net-metering scheme. Electricity 154

surpluses can be sold to the universal service provider. It has not yet been implemented, and the technique for 155

determining the price at which the surplus should be redeemed has not yet been adopted [16]. 156

Following the progress made in holding auctions, Albania should concentrate on revising its legal framework to 157

ensure the assistance scheme's clarity and predictability. Other priority should include the implementation of rules 158

related to biofuel sustainability and the construction of a working electronic system for origin assurance [16] 159

The table 2 shows the renewable energy implementation for 2021. According to energy community the National 160

Renewable Energy Action Plan aims to promote energy supply security in Albania, as well as the integration of 161

renewable energy sources into domestic, regional, and European markets. By introducing economic diversification and 162

promoting renewable energy production, the Action Plan contributes to poverty reduction and social development by 163

creating new job opportunities, particularly in rural areas, while also stimulating business competition and ensuring 164

domestic energy supply stability, which could lead to lower consumer prices [17]. 165

The Action Plan incorporates 'financial support measures' as a direct investment of the Albanian government 166

towards the achievement of Action Plan objectives, in order to enable more inclusive and efficient energy production 167

systems. Financial assistance comprises direct investment support, capital grants, low-interest loans, tax discounts or 168

abatements, and encouraging tariffs (Feed in Tariff), which entails preliminary agreements with public suppliers to buy 169

from small energy producers [17]. 170

Table 2. Renewable Energy Implementation. Source: Energy Community [16] 171

Renewable Energy Indicators Implementation Status Descriptions

In 2019, renewable energy sources
60% accounted for 36.67 % of Albania's total
National Renewable Energy energy consumption. The deadline for
Action Plan meeting the 38 % target set for 2020 was
extended unilaterally to the end of 2021.
The Renewables Law establishes assistance
schemes in the form of Feed-in Tariffs
Quality of support schemes 72% (FiTs) and Contracts for Difference (CFDs)
that are determined by the government
(CfD). Auctions with a fixed purchase
price were held, with the intention of
converting to CfD once a day-ahead
market is up and running. On April 1, 2021,
all renewable producers become balance
accountable. In practice, however,
producers under the assistance plan have
not yet assumed balance responsibility.
Energies 2021, 14, x FOR PEER REVIEW 6 of 16

Renewable energy producers have assured

and prioritized grid access. Network
Grid integration 55% operators have devised medium and long-
term strategies for integrating new
renewable energy sources into the system.

There has been no progress in simplifying

Administrative procedures and
guarantees of origin
Renewable energy in transport
administrative procedures and
50% establishing a one-stop shop. Albania has
expressed interest in participating in the
Energy Community's regional attempt to
create an electronic system for establishing
origin assurances.
Provisions relating to biofuels' long-term
viability have yet to be implemented, and
0% the legal framework is still in complete
violation of Directive 2009/28/EC. As a
result, biofuels, which currently account
for more than 10% of the gasoline market,
are excluded from the calculation.

3.1.4 Climate Change Impact and Policies. 172

Albania is one of the most vulnerable countries in the South East European region to climate change. 173

Temperatures have already risen, precipitation has decreased, and extreme events like as floods and droughts have 174

become more often as a result of changing weather patterns. Annual precipitation is anticipated to fall by 2.6 % to 3.4 % 175

by 2025, and by up to 6.3 % by 2050, compared to 2019 values [11]. 176

Summer precipitation is expected to be the most affected, with an 11.5 percent decrease by 2025 and a 23.2 percent 177

decrease by 2050. Given that Albania's electricity system is heavily reliant on hydropower, decreased precipitation levels 178

will have a negative impact on the generation output of existing HPP installed capacities, particularly during the 179

summer months. By 2050, the average annual electricity generation from existing large HPPs is expected to be 15% 180

lower than in 2010, while small HPPs are expected to have a 20% decrease in generation output [11]. 181

The government endorsed the National Climate Change Strategy in 2019, which is the country's low-carbon 182

development strategy under the Paris Agreement. In December 2020, a Climate Change Law was enacted [16]. 183

The Ministry of Tourism and Environment is currently drafting secondary legislation on a mechanism for 184

monitoring and reporting GHG emissions, which is expected to be approved by the Government in the fourth quarter 185

of 2022, including the establishment of a national GHG inventory system (currently project-based) [16]. 186

The Climate Change Law provides the legal foundation for the NECP, though provisions on its role and function, 187

as well as details on updates are missing. In July 2021, the draft NECP was submitted to the Secretariat for formal 188

recommendations. The process of strategic environmental assessment began in late summer 2021 [16]. (See table 3). 189

190

191
Energies 2021, 14, x FOR PEER REVIEW 7 of 16

Table 3. Climate Indicators. Source: Energy Community [16] 192

Climate Indicators Implementation Status Descriptions

National greenhouse gas 65% The Climate Change Law was adopted in
emissions monitoring and December 2020. The Government is expected to
reporting systems approve draft secondary legislation on a
mechanism for monitoring and reporting GHG
emissions in the fourth quarter of 2022.
National Energy and Climate 80% Albania submitted a draft NECP to the
Plans (NECPs) Secretariat for formal recommendations in July
2021 and this draft was implemented 80%.

Albania submitted its first Nationally Determined Contribution (NDC) in November 2015, pledging to reduce carbon 193

dioxide (CO2) emissions by 11.5 % between 2016 and 2030 compared to the baseline scenario, or 708 kt CO2 emission 194

reduction in 2030." Increased use of renewable energy is one of the suggested mitigation measures [18] 195

Albania signed the Paris Agreement on 22 April 2016, the commitment was made for an effective and inclusive transi- 196

tion to low GHG emissions, climate resilient development, and increased public support for achieving the Paris Agree- 197

ment's long-term goals. Albania committed in 2019 to develop its National Energy and Climate Plan for the years 2021- 198

2030. In 2019 Albania joined the NDC Partnership, demonstrating its commitment to ambitious NDC implementation 199

under the Paris Agreement and the 2030 Sustainable Development Goals [18]. 200

The NDC is based on a comparison of a business-as-usual (BAU) scenario and an NDC scenario that takes mitigation 201

measures into account. Projections are based on macroeconomic assumptions such as GDP and population forecasts, as 202

well as historical trends, strategies, and plans that have been approved at the national level [18]. 203

204

The NDC scenario for the energy sector is based on the Combined Strategy scenario. The NDC scenario contemplates 205

the use of natural gas in almost all sectors. It also takes into account the implementation of various National Energy 206

Efficiency Action Plans (NEEAP) to increase energy efficiencies in both supply and demand, with the goal of reaching 207

15% of the national final energy demand gain by 2030. The National Renewable Energy Action Plan (NREAP) it also 208

implemented, which calls for a share of renewables in final energy consumption of 38% in 2020 and 42% in 2030 [18]. 209

(See figure 1). 210

211
Figure 1. Projected BAU and NDC scenario emissions for energy sector [18] 212

213
Energies 2021, 14, x FOR PEER REVIEW 8 of 16

3.2 Philippine Renewable Energy 214

The Philippine government has established short-term and long-term Renewable Energy goals and policies to 215
encourage Renewable Energy development. Because of worldwide concerns about climate change, environmental de- 216
struction, and carbon emissions, there is an immediate need for sustainable use of energy. Thus, among the major issues 217
confronting the country are energy security and rising CO2 emissions. The persistent usage of non-renewable energy 218
in the Philippines, not only focuses on the issue of energy security but also on the sustainability issue. In terms of re- 219
newable energy use, the Philippines has been a model global citizen, ranking second in the world in both geothermal 220
electricity generation and total biomass power generation [19]. It has also had an enviable economic growth trajectory 221
in recent years, though the economic gains have not benefited the rural poor, who make up the majority of those living 222
below the poverty line [20]. 223

The government unveiled the National Renewable Energy Program (NREP), also referred to as the "Green Energy 224
Roadmap," which relies on the DOE's Energy Reform Agenda and aims to extend the country's energy supply secu- 225
rity. The framework for increased improvement and progress of RE resources, as well as the creation of a strategic 226
program to increase its utilization. The DOE plans to nearly triple renewable energy capacity from 5,438 MW in 2010 to 227
approximately 15,304 MW by 2030 [21]. In order to achieve this goal, the government imposed different policies and 228
program towards sustainable renewable energy. It includes the Renewable Portfolio Standards (RPS), Green Energy 229
Option Program, Feed-in-Tariff (FIT), Net Metering for Renewable Energy. Below is the current state and future road 230
map of renewable energy in the Philippines. (See Figure 1). 231

232
Figure 2. Current State and Future Road Map [22] 233

3.2.1 Energy Supply and Demand Situation in the Philippines 234

The country's total installed, and reliable power capacity was primarily made up of fossil fuels. Despite their en- 235
vironmental consequences, fossil fuels, particularly coal, were the Philippines' primary source of electricity. By 2020, 236
fossil fuels will account for half of the total electricity generation in the country. Natural gas is the second largest con- 237
tributor, accounting for 17% of the total. That year, fossil fuels provided 78 percent of the country's electricity production 238
[23]. 239
The Philippine government has stated that the country to be self-sufficient in energy, using a combination of fossil 240
fuels and renewable energy as solutions. By 2040, an additional 43 GW of capacity will be required, and the country is 241
clearly behind schedule in developing solutions. With a current energy capacity of 23GW, the current energy mix is 242
composed of coal (47%), natural gas (22%), renewable energy (hydro, geothermal, wind, solar) (24%), and oil-based 243
(6.2%) [24]. 244
In Table 4, it shows the Energy Capacity installed as of 2010 for all sectors and the Total energy projection by 2030 245
Energies 2021, 14, x FOR PEER REVIEW 9 of 16

Table 4. Energy Capacity installed as of 2010 to 2030 246

Installed Ca- Target Capacity Addition Total In-

Total Capacity,
pacity, MW as stalled Ca-
Sector Addition, MW
of 2010 pacity by
2011-2030
2030
2015 2020 2025 2030
Biomass 30 276.7 0 0 0 2767 306.7
Geothermal 1992 220 1100 95 80 1495 3487
Hydro 3382 343.3 3161 1891.8 0 5396.1 8778.1
Ocean 0 0 35.5 35 0 705 70.5
Solar 1 269 5 5 5 284 285
Wind 33 1048 855 442 0 2345 2378
Total 5438 2157 5156.5 2468.8 85 9855.4 15304
247

3.2.2 Renewable Energy Policies in the Philippines 248

The Philippine government has established Renewable Energy targets and policies to encourage RE development. 249

Table 5. Regulations imposed for Renewable Energy in the Philippines. 250

Title Data Approved Descriptions

Republic Act No. 6969
The Department of Energy Act (Re-
public Act No. 7638)
Republic Act No. 8479
An Act to Control Toxic Substances, Hazardous and
October 26, 1990 Nuclear Wastes, and to Provide Penalties for Viola-
tions of the Same, and for Other Purposes [25].
This act establishes the Philippine Department of En-
December 9, 1992 ergy and specifies its powers, functional areas, and
structure [26].
An act to regulate the downstream oil industry, and
February 10, 1998 for other purposes [27].

The Electric Power Industry Re-
form Act (EPIRA; Republic Act No.
9136) approved by the President on
8 June 2001
Biofuels Act of 2006 or Republic
Act 9367
Renewable Energy Act of 2008 or  
Republic Act 9513
Its primary goal is to improve power supply reliability
June 8, 2001 and lower tariffs. A Legislation directing reforms in the
electric power industry, amending specific laws for
this purpose, and for other purposes [28].
An act to direct the utilization of biofuels, establish-
January 12, 2007 ing a biofuel program for this purpose, approaching
funds, and for alternative functions. Provides mone-
tary incentives and needs the utilization of biofuel-
blended gasoline and diesel fuels [29].
The legislative branch passed the Renewable Energy
December 16, 2008 Act in 2008.  The law is critical to reaching the goals of
increasing renewable energy resource exploration and
development for energy self-sufficiency, implementing
clean energy to reduce global warming, and promoting
social-economic development in rural areas. [30].
Energies 2021, 14, x FOR PEER REVIEW 10 of 16

With limited domestic fossil fuel resources, the Philippines is heavily reliant on imported fuel, presenting the 251

economy and the public with price fluctuations. The advancement of renewable energy development through the en- 252

actment of laws and regulations has become the government's strategy for achieving self-sufficiency and energy security 253

[31]. The governments implemented different policies to support and promote renewable energy development. Accord- 254

ing to [32] ,they classified policies into different schemes; Quantity-based schemes and price-based schemes. 255

Table 6. Policies to Promote and Support the Development of Renewable Energy 256

Title
Feed-in-tariff (FiT)
Bidding system
Quota obligation Scheme
Green certificate trading
Fiscal incentives
Content
In this scheme, qualified RE producers are guaranteed a standard rate or pur-
chasing price for the electricity they generate for a set period of time.
The FiT system functions as a subsidy for renewable energy producers. In 2012,
the FIT rate is Fixed price for 20 years [33].
The regulator determines the amount of renewable energy to be generated and
then organizes a competition to distribute the amount among renewable en-
ergy producers. Selected manufacturers are awarded long-term contracts to
supply electricity at pay-as-you-go rates [33].
It is imposed on energy producers, suppliers, or distribution companies to
source a certain percentage of their electricity from eligible renewable energy.
This scheme's implementation would also include a penalty for noncompli-
ance in order to ensure that obligated parties meet their renewable energy pur-
chase obligations [33].
The use of a certificate system allows for the efficient allocation of quotas, as
the framework results in equalized marginal production costs among operators
and the possible entry of specialized producers into the economy [33].
Tax exemptions/reductions, subsidies, grants, soft loans, or rebates are exam-
ples of these types of incentives [33].

257

3.2 Philippine Climate Goals 258

According to an Asian Development Bank study on the economics of climate change, the Philippines stands to 259
lose 6% of its GDP annually by 2100 if climate change risks are ignored. 260

In April 2021, the Philippines' government committed to the United Nations Framework Conference on Climate 261

Change to reduce and avoid 75 percent of GHG emissions from 2020 to 2030. This goal applies to the energy, transpor- 262

tation, manufacturing, agriculture, and waste sectors [34]. 263

Countries adopted the Paris Agreement on Climate Change in December 2015, a legally binding agreement 264

aimed at limiting global temperature rises to 1.5 degrees Celsius above pre-industrial levels [23]. 265

Despite financial constraints, the Philippines has already shown its commitment to meeting its pledge by implement- 266

ing the national climate action plan and incorporating climate change into national and local development plans and 267

budgets. 268

Due to the impact of the COVID-19 pandemic, the Philippines economy experienced a deep recession in 2020, with 269

GDP contracting by 9.6 percent year on year. This was the highest annual decrease ever registered in the Philippines 270

since the National Accounts data series began in 1946 [35]. 271
Energies 2021, 14, x FOR PEER REVIEW 11 of 16

3.2.1 Climate Change Priorities of ADB and the WBG 272

• ADB and the Philippines have reached an agreement on a Country Partnership Strategy (CPS) for the years 273

2018–2023. 274

• Within the CPS, ADB pledges to support the govt in achieving socio-economic development goals through low- 275

carbon development and can help the govt achieve its nationally determined contribution commitments through 276

knowledge and technology transfers and capacity building of key stakeholder [7]. 277

•WBG — Country Partnership Framework 278

The World Bank Group (WBG) approved a Country Partnership Framework (CPF) for the years 2019–2023. Resil- 279

ience to Climate Change, Environment, and Disaster Risk Management were identified as the fourth of five engagement 280

areas. The World Bank Group will continue to assist the government in implementing climate change action, disaster 281

risk reduction, and environmental management. The WBG will emphasize the link between environmental sustainabil- 282

ity, low-carbon development, disaster risk reduction, and climate change adaptation to the overall sustainable devel- 283

opment agenda through this partnership [7]. 284

4. Discussion 285

Harnessing renewable energy resources for the development of the energy sector has economic, social, and 286

environmental benefits, but it also presents a number of integration challenges. These difficulties stem primarily from 287

the resource's spatial localization to sub-hourly, daily, and seasonal variations. These characteristics of renewable 288

energy resource availability must be thoroughly understood and assessed in order for them to be effectively harnessed 289

and integrated into the energy system [11]. The policies implemented are continuously followed and the government 290

keeps them updated depending on the situation of the country, but still the countries are striving to achievegoals. 291

4.1 . Albania 292

In the power sector, a well-assessed resource potential and timely planning for variable renewable power generation 293

and grid infrastructure can reduce technical disruptions to the grid and improve energy supply quality while ensuring 294

economic viability for the power producer, system operators, and final consumers. Thus, proactive planning based on 295

techno-economic resource potential is critical in the development of a robust energy sector [11]. 296

Albania would benefit from improved monitoring, forecasting, and dissemination of information on meteorological 297

and hydrometeorological conditions also. Energy efficiency improvements can be aided in the short term by 298

diversifying energy supply, both domestically and through trade. Albania has already committed to reducing 299

greenhouse gas emissions and increasing investment and capability in renewable energy generation, particularly for 300

use in industrial processes [36]. 301

Increased investments should be made in the electricity distribution network to support further decentralization and 302

resilience to extreme weather events. Due to the projected decrease in surface water and river flow, as well as the 303

country's current high reliance on hydropower, additional research into reducing reliance on hydropower is 304

recommended for Albania. Institutional and individual capacity in renewable energy technology and management still 305

needs to be built, and policies should be designed to encourage private investment in renewable energy [37, 6]. 306

The Renewables Readiness Assessment (RRA) from IRENA evaluated some of the key challenges regarding renewable 307

energies. In result section also, it is described renewable energy implemented by the government. In order to achive a 308

sustainable energy some of the recommended actions are mentioned below: 309

4.1.1 Actions to achieve the Goals [11]. 310

Energies 2021, 14, x FOR PEER REVIEW 12 of 16

• Action 1: Developing renewable energy zones. 311

Some renewable energy technologies have received less attention in Albania than others due to a lack of available 312

renewable energy resources. Because of the increasing climatic changes that have resulted in erratic hydropower 313

generation in recent years, many of the studies that have been conducted are now out of date, and future projections of 314

hydropower generation potential should be studied. In Albania, economic potential analysis and zoning for solar and 315

wind resources are lacking and in this area should do researches. This impedes policy development in terms of setting 316

achievable targets, sizing appropriate solar and wind auctions, and planning the least-cost power system. Renewable 317

energy zones are areas with high-quality resource potential for power development that are environmentally sound, 318

technically and economically viable, and can be prioritized for development. 319

• Action 2: Developing a comprehensive least-cost energy master plan. 320

Effective energy planning is a method of combining data from the energy sector and beyond, such as renewable energy 321

zoning, energy resource potentials, and historical statistical trends, as well as other qualitative and quantitative 322

information, into a clearly defined and evidence-based energy development pathway. The National Energy Sector 323

Strategy 2030, as well as the National Renewable Energy Action Plan 2018-2020 and the Gas Master Plan, guide 324

Albania's energy sector. While these documents establish a framework with overall goals as well as quantitative 325

scenarios and targets for the energy mix, a holistic least-cost plan must be developed to aggregate subsectoral plans and 326

assess the accompanying infrastructure required to achieve overall goals. This plan, in particular, should direct when, 327

where, and how investments in the energy sector should be made. 328

• Action 3: Strengthening the distribution network. 329

As Albania moves toward a more diverse renewable energy mix in its power system, the distribution network will 330

become more important as the backbone and determining factor in the scale at which renewables are injected into the 331

power system. The current state of the distribution network does not allow for more variable renewable energy 332

generation injection. Grid flexibility studies, particularly those based on renewable energy zones and planned 333

distributed generation projects, would help to prioritize future grid strengthening needs in line with generation 334

expansion. 335

• Action 4: Strengthening support mechanisms for renewable energy deployment. 336

Fiscal incentives, such as tax breaks, FiTs, and premiums, are one of the primary attracting mechanisms for renewable 337

energy investments. Although Albania has made progressive efforts to establish various support incentives for 338

increased renewable energy uptake, these could be strengthened further. 339

• Action 5: Establishing a dedicated renewable energy agency. 340

Despite being contemplated in the Renewable Energy Law, Albania lacks a dedicated renewable energy agency to 341

inform the coordinated development of renewables in accordance with national and international obligations. The 342

establishment of such an agency would be a significant step given the country's ambitions to develop the energy sector 343

to include a greater share of renewables [11]. 344

4.2 Philippines 345

The Philippines has rapidly increased its renewable energy deployment in recent years, particularly since the 346
introduction of Feed in Tariffs, attracting considerable interest from the private sector, which has resulted 347
in several challenges that could delay or prevent the country's future development of renewable energy resources. The 348
Renewables Readiness Assessment (RRA) evaluated key challenges, recommended actions to address difficulties that 349
Energies 2021, 14, x FOR PEER REVIEW 13 of 16

were defined, and provided guidance on fine-tuning the Philippine renewable energy policy, regulatory, and policy 350
structure. From source [24]. Recommended plans are as follows. 351

4.2.1 Guidance to achieve the Goals [24] 352

• Raise awareness in order to ensure long-term political commitment. 353

In the Philippines, public awareness has a significant impact on political commitments, choices, and the direction of 354

government policies. Increasing public awareness of the advantages of renewable energy applications is thus im- 355

portant. 356

• Evaluate the grid infrastructure of the country 357

A thorough grid evaluation with an emphasis on grid stability. This contains an assessment of the current state of the 358

infrastructure, service quality and power flow, as well as reliability evaluations in response to solar or wind generation 359

inputs at various points and penetration levels. 360

•Investigate the institutional capacity of the Philippines' renewable energy sector. 361

A thorough institutional capacity assessment of the Department of Energy Renewable Energy Management Bureau and 362

other relevant agencies is recommended accompanied by an assessment of stakeholders. Its aim should be to anal- 363

yses their legal mandates and responsibilities for implementing the Renewable Energy Act and the NREP in comparison 364

to their current functions and capacity 365

•Investigate the potential for renewable electrification via mini- and microgrids. 366

These include an evaluation of the existing policies and regulatory frameworks, technological options/guidelines, busi- 367

ness models, and the long-term social and economic benefits that such systems can generate for society. The study 368

should yield recommendations for developing the policies and regulatory frameworks required to encourage invest- 369

ment in mini-grids and facilitate private sector participation. 370

371
4.3 Comparison of the two countries 372
373
Albania and the Philippines are two different countries, respectively, in the European and Asian continents and 374
their governments apply different policies for developing renewable energy. They are geographically separated, and 375
their climatic conditions differ. Albania has a Mediterranean climate, whereas the Philippines is considered a tropical 376
country with high solar radiation all year. This difference has a significant impact on renewable energies, in terms of 377
hydropower electricity generation, solar energy and other renewable sources. 378
The highest source of energy in the Philippines is from coal, which is a fossil fuel. However, in renewable energy, 379
geothermal has the highest source contribution in power generation. While in Albania, the highest source of energy is 380
from hydropower plant with 20% electricity generation. 381
Both countries have geothermal source, but in Albania, it is still under study, and it is not used as an energy source in 382

the country. A sustainable renewable energy will affect the climate conditions in the country. However, with policies 383

implemented and developed both countries, there is a huge possible of attaining efficient energy to fight climate change. 384

5. Conclusions 385

Renewable energy implementation on Philippine islands is critical for long-term development. As a result of the 386
evolving coronavirus pandemic, energy markets and supply chains face unprecedented challenges. In the face of this 387
uncertainty, a commitment to a renewable energy transition could provide much-needed resilience. The Philippines' 388
renewable energy targets could be raised. The targets, however, must remain realistic, so any increase should be dis- 389
cussed with stakeholders. The Philippines' economic development, combined with a growing population with higher 390
living standards, is the primary driver of the rise in domestic energy demand. As energy demand rises in the coming 391
years, the challenges of energy security and sustainability become more pressing, not only because the country relies 392
heavily on imported energy, but also because it has limited resources of energy. 393
Energies 2021, 14, x FOR PEER REVIEW 14 of 16

The corona pandemic has affected all sectors in Albania also, as it has in any other country. Despite the challenges, 394

the responsible ministry is paying special attention to the country's energy sector, investing in sector development. 395

Foreign investors have offered to invest in renewable energy in Albania, with a particular focus on solar and wind 396

energy. Renewable energy deployment provides numerous socioeconomic benefits for Albania, including job creation, 397

income generation, reduced air pollution, welfare improvements, and local industrial development that leads to 398

increased GDP. Both countries are making substantial progress in implementing renewable energy policies, and they 399

are on the way to achieving their goals regarding energy efficiency, sustainable energy, and climate change goals. 400

401

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