Philippines has taken the lead among major Southeast Asian economies in adopting renewable energy policies

PH leads race for clean energy among emerging SE Asia countries — study

Ted Cordero
GMA News
30 September 2026

Over six months after President Ferdinand Marcos Jr. declared a national energy emergency, a new study revealed that the Philippines has taken the lead among major Southeast Asian economies in adopting renewable energy policies during the peak of the Strait of Hormuz crisis.

In a news release, international climate and energy research organization Zero Carbon Analytics said it conducted a study on six fastest-growing Southeast Asian markets — the Philippines, Indonesia, Malaysia, Thailand, and Singapore, alongside Vietnam — “all of which have committed to accelerating their shift to green technology amid historic oil market volatility.”

In its report, Zero Carbon Analytics said crude oil experienced greater volatility during the first six months of the conflict than 95% of all six-month periods since 2007, marking one of the most turbulent episodes for oil markets in nearly two decades.

In response, the research group said the Philippines adopted 13 clean energy policies between February and August 2026, representing the highest number among the tracked countries, which collectively announced 37 clean energy policies.

Across these nations, short-term clean energy policies outpaced the 29 fossil fuel policies passed during the same period, while long-term initiatives on renewables and electrification outpaced fossil-based efforts by a ratio of four to one, with 24 policies compared to six, according to Zero Carbon Analytics.

The research group cited key developments in the Philippines such as the proposing of the Sariling Kuryente Act, fast-tracking at least 250 megawatts of solar capacity to the grid, mandating energy storage systems for new renewable energy developers, and expanding electric vehicle adoption under the national energy emergency directives.

Despite its clean energy leadership, the group said the Philippines also adopted nine fossil fuel-focused policies, accounting for 40% of the energy policies tracked in the country.

These included accelerating up to 5 gigawatts of coal capacity and establishing the country's first government-managed Strategic Petroleum Reserve facility.

In a Facebook post, Energy Secretary Sharon Garin welcomed Zero Carbon Analytics’ findings.

“Who has introduced the most fossil fuel and renewable energy policies in the region? The Philippines has introduced the most energy policies since the start of the conflict, with 22 in total, leading in both fossil fuel and renewable energy policies,” Garin said.

“This is likely due to its declaration of a national energy emergency on 24 March 2026. The declaration included a list of emergency relief measures, such as directly procuring oil and increasing government control over fuel prices, as well as longer-term steps to accelerate renewables, EVs and energy efficiency across all sectors,” she said. — BAP, GMA News

South Korea keen on investing in Luzon Economic Corridor

Philippines, South Korea scaling up economic cooperation

Aubrey Rose Inosante

Philstar Global

10 July 2026

MANILA, Philippines — The Philippines and South Korea are scaling up economic cooperation through strategic investments under the Luzon Economic Corridor (LEC) and potential collaboration on nuclear energy, the Department of Finance (DOF) said.

Finance Secretary Frederick Go and Korean Ambassador Lee Sang-Hwa reaffirmed their commitment to expanding economic cooperation, including opportunities under the LEC.

The two countries are strengthening their economic partnership through strategic investments in high-value manufacturing, semiconductors, shipbuilding and infrastructure.

The partnership leveraged Korea’s technical expertise and the Philippines’ young workforce, the DOF said.

“These investments represent opportunities for Filipinos through better jobs, improved connectivity and more reliable services. We look forward to working closely with Korea to deliver projects that are truly responsive to the needs of the people,” Go said.

Among the investments mentioned was the expansion of the multilayer ceramic capacitor (MLCC) manufacturing facility of Samsung Electro-Mechanics Philippines in Laguna.

MLCCs are vital components of automobiles, smartphones and other electronic devices.

Go and the Korean envoy also noted SFA Semicon’s proposed expansion investment, HD Hyundai Heavy Industries’ shipbuilding operations in Subic and the construction of two major railway projects that will enhance connectivity across Luzon.

The Philippines and Korea are likewise deepening maritime cooperation through HD Hyundai Heavy Industries Philippines, which is set to launch its first locally built vessel at its Subic shipyard this year.

Korea is also a key partner in the construction of the North-South Commuter Railway and the Subic-Clark-Manila-Batangas Railway, which are touted to slash travel time and cost.

Potential cooperation on nuclear energy to diversify the country’s energy mix and support long-term economic growth was also explored.

“As a trusted and enduring partner, the Republic of Korea remains committed to deepening substantive cooperation with its strategic partner, the Philippines, to build a shared future marked by mutual prosperity, resilience and sustainable growth,” Lee said.

Philippines emerging as one of the world's fastest-growing markets for rooftop solar insallations

Philippines leads in solar panel use

Alimat Aliyeva
Azernews (Azebaijan news outlet)
 29 June 2026

Residents of the Philippines are increasingly turning to rooftop solar panels as electricity prices continue to soar, making solar energy one of the fastest-growing alternatives in the country, AzerNEWS reports.

According to reports, the Philippines' largest electricity distributor, Meralco, recently raised power tariffs by 10% following the escalation of tensions in the Middle East, which pushed global energy prices higher. As a result, demand for residential solar systems has surged, with the Philippines emerging as one of the world's fastest-growing markets for rooftop solar installations.

The average Filipino household now spends around 12% of its monthly income on electricity bills. Unlike many other Southeast Asian nations, the Philippines provides limited government subsidies for electricity, leaving consumers to pay some of the highest power prices in the region.

Homeowners say the falling cost of solar panels, combined with steadily rising electricity rates, has made investing in rooftop solar systems more financially attractive than ever. Many families expect to recover their installation costs within just a few years through lower monthly utility bills.

The Philippines receives abundant sunshine throughout the year, averaging 4.5 to 5.5 peak sun hours per day. This makes rooftop solar one of the country's most effective renewable energy solutions, allowing many households to significantly reduce their dependence on the national power grid while lowering long-term energy costs.

Philippines among top drivers of SE Asia’s RE growth

Philippines among top drivers of SE Asia’s RE growth

Story by Brix Lelis
Philstar Global
14 October 2025

MANILA, Philippines — The Philippines has emerged as a leading catalyst in Southeast Asia’s renewable energy (RE) transition through 2030, according to the International Energy Agency.

The latest IEA report showed that the Philippines, alongside Vietnam and Indonesia, would boost the region’s RE surge, with major capacity gains expected between 2025 and 2030.

In particular, the Philippines is poised to add around 15 gigawatts (GW) of new RE capacity, with solar and onshore wind making up 90 percent of the expansion.

“This represents a five-GW (around 50 percent) increase over the previous forecast, owing to completed and ongoing competitive auctions,” the IEA said.

Recently, the Department of Energy (DOE) attracted over 9,400 megawatts (MW) of capacity during the fourth green energy auction (GEA-4) round, with delivery dates between 2026 and 2029.

GEA-4 covers ground-mounted solar, roof-mounted solar, floating solar, onshore wind and integrated solar with energy storage systems.

This followed the successful bidding of over 6,000 MW of impounding hydro, pumped storage hydro and geothermal contracts under GEA-3.

“If challenges such as grid connection delays, high financing costs, land access restrictions and permitting bottlenecks are addressed, growth could be 90 percent higher, putting the country on track to exceed its targeted 35 percent renewable electricity share by 2030,” the IEA said.

Currently, renewables account for only 22 percent of the Philippines’ power mix, with coal remaining dominant at about 63 percent.

To ensure the timely delivery of new RE projects, the DOE is looking to allow power producers to build associated transmission facilities.

The move is designed to support effective grid integration of new projects and address constraints in the transmission network.

Across the region, ASEAN countries are on track to add over 95 GW of new RE capacity over the next five years, the IEA said.

Notably, more than half of these additions are likely to come from solar photovoltaic projects.

According to the IEA, Vietnam leads ASEAN’s RE growth and accounts for over 40 percent of total capacity additions, followed by Indonesia at 20 percent.

Both countries are expected to accelerate their expansion efforts through 2030.

Vietnam invests billion dollars in PH transport sector

Vietnam’s Green GSM investing $1 billion in Philippines

Louella Desiderio
Philstar Global 
11 June 2025

MANILA, Philippines — Vietnamese electric vehicle (EV) ride-hailing service provider Green and Smart Mobility (Green GSM) is investing $1 billion to support its operations in the Philippines.

The Office of Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) said in a statement yesterday that Green GSM has started its investments in the Philippines with the launch of its taxi and transportation network vehicle service in the country yesterday.

OSAPIEA said the ride-hailing service provider using VinFast electric vehicles is investing $500 million to support the first phase of its operations in the country.

Green GSM has deployed an initial fleet of 2,500 all-electric VinFast vehicles for its operations in Metro Manila.

Apart from the deployment of the initial fleet, the investment is also being used to set up Green GSM’s office, hire employees, construct charging stations and garage for taxis, as well as the purchase of taxi units.

The fleet includes the VinFast VF 5, a compact EV with a range of 326 kilometers, advanced driver-assist systems and modern infotainment features, suitable for the country’s urban centers.

Once fully operational, OSAPIEA said Green GSM is expected to create 20,000 to 70,000 high quality jobs for Filipinos nationwide, with investments reaching a total of $1 billion.

Green GSM will operate through a hybrid model of taxi services, combining manual hailing and bookings made through the app.

“This will be a game-changer for Philippine public transport. It promises not only to modernize our transport system, but more importantly to offer commuters a safer, more convenient and environment-friendly transport option,” SAPIEA Frederick Go said.

Go, along with Transportation Secretary Vince Dizon and Trade Secretary Cristina Roque attended Green GSM’s launch, supporting the government’s push for the adoption of green transport options.

In line with the push for the adoption and development of the EV industry, the government is aiming to see 2.4 million EVs on the road by 2028 to achieve its 50 percent EV adoption rate target by 2040.

Philippines ushers ASEAN in renewable energy investments

$27.7 billion: How the Philippines leads Asean in investments, green power push

Investments boom: 2024 saw a 28% jump in approved projects, as per DTI data

Jay Hilotin, Senior Assistant Editor
Gulf News (Saudi Arabia)
30 January 2025

Manila: The year 2024 broke records for investments, with approved projects hitting Php1.62 trillion ($27.7 billion), the Philippine Department of Trade and Industry (DTI) has confirmed.

Free energy from the sun: The Philippines's biggest winners in 2024 in wooing fresh capital were the energy and manufacturing sectors, as well as special economic zones. Renewable power led by solar-wind-batteries (SWB) secured Php1.38 trillion ($23.6 billion) in fresh inflows — a 40 per cent jump from 2023.Bloomberg

The bumper inflows exceeded the Php1.5 trillion initial target for the past year.

The Asean nation not only overshot its original aim: it was up 28 per cent, outpacing 2023’s Php1.26 trillion ($21.58 billion), outperforming neighbouring countries like Thailand and Malaysia in this metric.

The biggest winners in wooing fresh capital: renewable energy (RE) and manufacturing, among others, as per the Presidential Communications Office.

Green energy leads 

• The energy sector led the charge, securing Php1.38 trillion ($23.6 billion) — a massive 40 per cent jump from last year.
• Other booming sectors: air and water transport, mass housing, manufacturing, water supply, waste management, and real estate.

Economic zones

The Philippines, once dubbed as the "Silicon Valley" of South-east Asia, has lost its sheen due to power intermittency and high rates.

Now, it's plotting a comback, as the Philippine Economic Zone Authority (PEZA) also shattered expectations, raking in Php214.17 billion ($3.67 billion), surpassing its Php200 billion ($3.5 billion) goal for 2024.

Investment boom

Though officials didn’t directly link the surge to President Ferdinand Marcos Jr.’ global investment push, trade leaders credit his overseas trips for securing major deals. 

President His Highness Sheikh Mohamed bin Zayed Al Nahyan with Ferdinand Marcos Jr, President of the Republic of the Philippines, at Qasr Al Shati in Abu Dhabi in November 2024.

File photo | WAM

Australia: Marcos locked in $1.53 billion (Php86 billion) across renewable energy, clean tech, IT-BPM, and healthcare, plus an expansion of Victoria International Container Terminal (VICT).

Germany & Czech Republic: Fresh investments are rolling in, with PEZA reporting nearly Php75 billion — about 43 per cent of its annual target — linked directly to the international trade missions.

Vietnam: VinGroup pledged investments in EV battery production, fueling the government’s transport modernisation.

Japan: A sweet deal between local Auro Chocolate and retail giant Mitsukoshi will benefit 1,000 Filipino families, blending Davao’s cacao with Japanese flavours like matcha and miso.

What’s next?

Manila is doubling down on investment-friendly policies in 2025, ensuring the Philippines remains a top destination for business, innovation, and job creation, said Trade Secretary Cristina Roque.

“We will continue to refine and implement forward-looking policies that attract investments in these key industries, ensuring that the Philippines remains a prime destination for innovation and growth,” Roque was quoted as saying by the Presidential Communications Office.

With this momentum, the Philippines isn’t just catching up — it’s leading the pack in the Asean.

Challenges

The country is tackling a key challenge: energy security and high cost of power.

Policy makers are leading the drive with a mix of renewable energy (RE) expansion and mega gas-to-energy projects, potentially dislodging coal.

In 2024, the Philippines ramped up RE capacity: more than 4,000 megawatts (MW) of power projects came online, as per the Department of Energy (DOE).

In June, the agency approved the construction of 16 offshore wind farms, with an estimated potential capacity of 7,668 MW. 

In September, Danish firm Copenhagen Offshore Partners announced a $3-billion investment for the 1-gigawatt (GW) San Miguel Bay offshore wind power project in Camarines Sur, about 400km south-east of Manila.

Juice from this wind project will start energizing the power grid from 2028.

In November, the $3.4-billion integrated solar-battery project, claimed to be the “biggest-of-its-type-in-the-world” in a 3,500-hectare (35 sq km) land in Nueva Ecija and Bulacan, broke ground north of the capital, combining solar and batteries, able to power the equivalent of 2 million local homes.

The Philippines also announced 20 dams for hydro-electric power generation.

Earlier this month (January 2025), the Philippines and UAE sealed a $15-billion landmark solar-wind-batteries deal aimed to bolster the Asean nation’s renewable energy credentials.

Policy mandate

Policy has been tweaked, too: electricity suppliers are now mandated to increase their RE sourcing by at least 2.52 per cent annually starting in 2023, up from the previous 1 per cennt annual increase in 2020. 

Filipino business tycoons are turning into battery barons, ramping up megawatt-scale “power banks” – including ones on floating platforms, with container-size battery energy storage systems (BESS).

A key advantage: they can be quickly deployed where needed. More than 60 sites across the archipelago had been completed or in the roll-out stage.  

Global recognition  

While the Philippines still has one of the highest power rates in the region, the push for REs is hoped to bring rates down.

With companies like Aboitiz Power, ACEN, and Meralco scaling up solar farms and offshore wind, the Philippines landed second in the 2024 Climatescope Report by BloombergNEF, reflecting investor confidence in greening drive.

Will these moves push some — if not all — of the 60 coal-fired plants (with generating capacity of 12 GW) to retire earlier than planned?

It's early days.

The ramp in RE underscores Manila’s efforts to creating a greener, end-user and investor-friendly (and, hopefully, cheaper!) power eco-system.

Philippines Emerges as Global Leader in Clean Energy

Shocking Leap! Philippines Emerges as Global Leader in Clean Energy

Sarah Thompson
Jomfruland.net
05 January 2024

The Philippines has made an extraordinary leap in the global renewable energy market, soaring from the 20th to the 2nd most attractive country for clean energy investments within just three years, as highlighted by the 2024 Climatescope Report by BloombergNEF.

Renewable Energy in Focus

In a significant move, the Philippines has overtaken major players like China, solidifying its position as a key player in the sustainable energy arena. This progress is aligned with the country’s ambitious goal to increase its renewable energy share from 22% to 35% by 2030. The nation is rapidly becoming a beacon for investors due to its rich renewable resources and favorable investment climate.

Government’s Role in Driving Growth

The Philippine government is actively nurturing this growth through recent policy changes that now allow 100% foreign equity in renewable energy projects. State officials believe these reforms will open the floodgates for international funds, positioning the Philippines as a prime destination for sustainable energy ventures.

Challenges and Opportunities

Despite the positive momentum, industry experts like Blueleaf Energy’s Christopher Chua express skepticism about outpacing countries like India due to its sheer market size. However, the country’s openness and transparent market environment continue to draw foreign investments, giving it a competitive edge over regions with more restrictive energy policies.

Path Forward

To further enhance the sector, the Department of Energy is addressing challenges like grid integration and financing hurdles for smaller companies. Initiatives to modernize the grid and provide better financing options are crucial for sustaining the momentum and ensuring that all stakeholders, including small developers, can contribute to and benefit from the renewable energy transition.

The Philippines: A Rising Star in Renewable Energy Investments

Unveiling New Opportunities in Renewable Energy

The Philippines’ remarkable ascension in the renewable energy sector has not only attracted global attention but also unveiled a series of opportunities for investors and researchers. The country has demonstrated how strategic governance and policy reforms can fast-track a nation’s transition to clean energy.

Understanding the Driving Forces

Major developments propelling this growth include comprehensive policy advancements. For instance, the recent introduction of 100% foreign equity in renewable energy projects represents a seismic shift, fundamentally altering the investment landscape. By lowering bureaucratic hurdles, these reforms increase the Philippines’ allure on the global stage, encouraging both small and large-scale foreign investors to consider the archipelago as a viable market for sustainable solutions.

Trends and Predictions in Philippine Renewable Energy

Experts anticipate a continued upward trajectory for renewable energy investments in the Philippines. With a target of achieving a 35% renewable energy share by 2030, the nation is on a steadfast path. Market analysts predict that these ambitious goals, combined with favorable policies, will stimulate further innovation and technology integration in the sector.

Addressing Limitations and Infrastructure Needs

Even with these promising developments, certain challenges remain critical. For instance, the Philippine energy grid needs significant modernization to support the influx of renewable sources. Infrastructure improvements are essential to cope with new energy demands and maintain efficiency. Furthermore, financial strategies tailored to aid smaller energy developers are crucial. By ensuring accessible financing, the government can foster a diverse and competitive market atmosphere that values both sustainability and inclusiveness.

Market Analysis and Competitive Edge

The Philippines has outperformed nations with traditionally more restrictive energy policies due to its open and transparent renewable market environment. Compared to countries like China, where larger governmental policies may restrict foreign interactions, the Philippines offers a more welcoming approach—which experts agree gives it an edge in the global race towards renewable dominance.

Future Innovations and Technological Integration

The future of renewable energy in the Philippines looks promising with innovations such as advanced grid technologies and energy storage solutions expected to enter the market. These technologies will not only enhance the efficiency of current renewable installations but also ensure grid stability as more intermittent renewable sources like solar and wind are integrated.

Strategic Partnerships and Sustainable Growth

Global firms are eyeing the Philippines as a potential partner in the quest for cleaner energy solutions. The nation’s strategic location, coupled with its rich natural resources, positions it as a central player in developing sustainable energy initiatives. These partnerships are expected to drive further advancements in energy technology and resource management, fulfilling both environmental and economic goals.

As the Philippines continues to innovate and expand its renewable energy sector, it is crucial for stakeholders to stay informed about the evolving landscape, aiming for strategic investments and partnerships that will ensure the nation’s sustainability and economic vitality. For more information on the nation’s energy policies and opportunities, visit the Department of Energy.

PH ranked 2nd most attractive developing economy for RE investment

PH ranked 2nd most attractive developing economy for RE investment

By Anna Leah Gonzales
Philippines News Agency
December 9, 2024

MANILA – The Philippines is the second most attractive developing economy for renewable energy investment, the 2024 Climatescope report by BloombergNEF (BNEF) said.

The Climatescope report evaluates clean energy progress and market attractiveness across 110 developing countries using 100 indicators.

Dagohoy Solar Power Farm in Bohol province. (Screenshot from Bohol-PIO video)

These nations account for nearly two-thirds of global clean energy output and 82 percent of the world’s population.

The country's latest ranking was an improvement from fourth place in 2023.

BNEF's report said the Philippines has a power score of 2.65, surpassing the Asia-Pacific regional average of 1.94.

In a statement Monday, the Department of Energy (DOE) said the improvement in ranking "reflects the growing confidence of the global community in our country’s commitment to clean energy transition and sustainable growth."

"This achievement underscores the effectiveness of the Philippines’ comprehensive renewable energy policies, which include auctions, net metering schemes, tax incentives, and an aggressive clean energy target of 35% renewable energy in the power mix by 2030," the DOE said.

"As the only emerging market in the Asia-Pacific region with all these mechanisms in place, we are paving the way for a more sustainable energy future, not only for our nation but as a model for the region," it added.

However, the DOE said there is a need to further accelerate renewable energy development to address the needs of the country.

"Significantly, while most of the renewable energy investment is domestic, we look forward to realizing the potential of increased foreign participation through recent reforms that allow 100 percent foreign equity in renewable energy projects," it said.

The DOE said the administration of President Ferdinand R. Marcos Jr. is committed to driving renewable energy development, fostering innovation and creating an enabling environment for both local and international investors.

It added that the government will continue to harness the potential of the country’s natural resources.

"This recognition inspires the DOE to further intensify its efforts in achieving our renewable energy goals, ensuring that our nation remains a global beacon of progress in the energy transition," the DOE said. (PNA)

Nueva Ecija home to world's largest solar battery storage facility

BBM breaks ground for world's largest solar, battery storage facility

Catherine S. Valente

Manila Times

21 November 2024

MANILA, Philippines — President Ferdinand Marcos Jr. on Thursday led the groundbreaking of the Meralco Terra (MTerra) Solar Project, considered as the largest integrated solar and battery storage facility in the world.

In his speech in Gapan City, Nueva Ecija, Marcos said the landmark project would "put our country on the map as a leader in renewable energy."

"With an investment of over P200 billion, this demonstrates confidence in the stakeholders in our nation's potential and our commitment to securing a stable, steady, reliable, and sustainable power supply," Marcos said.

The President highlighted the importance of the solar project expected to power over two million households and reduce carbon emissions significantly once fully operationalized in three years.

He said it would also address the growing demand for electricity and the Philippines' urgent need to transition to sustainable energy.

"Once fully operational by 2027, this facility will deliver 3,500 megawatts peak of solar power to the Luzon grid, with 4,500 megawatt-hour battery energy storage," Marcos said.

"This project will energize over 2 million households and reduce carbon emissions by more than 4.3 million metric tons annually. To put that into perspective, it is equivalent to removing 3 million gasoline-powered cars from our roads—decisive action towards helping address global warming and climate change," he added.

The project spans 3,500 hectares across Nueva Ecija and Bulacan. Initially, it will be connected to the existing 500-kiloVolt (kV) Nagsaag-San Jose Transmission Line and later linked to the upcoming 500-kV Nagsaag-Marilao Transmission Line.

Philippines is seeking enhanced cooperation and investment opportunities with Germany

Philippines seeks stronger economic ties with Germany

Louise Maureen Simeon
Philippine Star
06 October 2024

MANILA, Philippines — The Philippines is seeking enhanced cooperation and investment opportunities with Germany in a bid to boost the local economy.

Finance Secretary Ralph Recto recently met with German Ambassador to the Philippines Andreas Michael Pfaffernoschke to discuss the country’s economic prospects and explore further cooperation with German investors.

Pfaffernoschke lauded the government for enhancing the ease of doing business in the country and eliminating trade barriers.

The ambassador likewise recognized the Philippines as one of the top performing economies and growth drivers in Southeast Asia, proving investors’ positive view on the country’s investment environment.

Data showed that Germany has consistently ranked as a top trade and investment partner for the Philippines.Last year, foreign direct investments from Germany soared to $149.89 million, the highest since 2005.

Germany emerged as the leading source of foreign-approved investments contributing almost P400 billion.

Recto said that the enactment of the Corporate Recovery and Tax Incentives for Enterprises Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill, targets to encourage more German investors to pour resources into the Philippines.

Expected to be passed within the year, CREATE MORE targets to enhance both fiscal and non-fiscal incentives, resolve key investor concerns and respond to emerging global developments.

It will also streamline business compliance by reducing documentary requirements and exempt export-oriented enterprises from paying value-added tax.

Specifically, the government is looking to attract more investments in clean and renewable energy, green infrastructure, sustainable agriculture and waste-to-energy technologies, among others.

Coalition for Emerging Market Infrastructure Investment's (CEMII) picks Philippines for energy investment

PH top choice for $25B energy investments

Ed Paolo Salting 

Manila Times

01 October 2024

THE Department of Energy on Monday said it welcomed the Coalition for Emerging Market Infrastructure Investment's (CEMII) choice of the Philippines as an initial market for $25-billion worth of energy investments from the Indo-Pacific Economic Framework (IPEF) economies led by the United States.

Last week, the Indo-Pacific Partnership for Prosperity (IP3) announced plans to launch country platforms dedicated to infrastructure investment.

IP3 Executive Director David Talbot said this new strategy would advance innovative, action-oriented approaches for quick deployment of capital.

The Philippines, he pointed out, is an ideal market for its rapid growth in energy demand and ambitious renewables targets.

For his part, Energy Secretary Raphael Lotilla noted the partnership aligned perfectly with the country's transition toward a more sustainable, clean and resilient energy sector.

"We look forward to working closely with the coalition to realize our shared vision of a clean energy future for the Philippines and the broader Indo-Pacific region," Lotilla said.

The plan includes CEMII engaging in high-level meetings to identify mutual areas of interest and developing a joint roadmap to accelerate investments in clean energy infrastructure.

CEMII is convened by the IP3 and is co-chaired by investment firms Global Infrastructure Partners (GIP) and KKR. Members include Allied Climate Partners, BlackRock, Brookfield, GIC, The Rockefeller Foundation, and Temasek.

IP3 is a collaboration of public, private and nonprofit leaders dedicated to mobilizing capital and expertise to advance economic growth, sustainability and inclusivity among 14 partner countries of the IPEF.

Spanish energy firm invests in PH offshore wind

BlueFloat Energy invests in offshore wind expansion in PH

POWER PHILIPPINES NEWS
July 1, 2024

BlueFloat Energy, based in Madrid, is making a considerable investment in the Philippine offshore wind sector to enhance the country’s energy infrastructure.

In a report by the Philippine Star, the company entered the Philippine market last year, acquiring wind energy service contracts in four regions: Central Luzon, Southern Luzon, Northern Luzon, and Southern Mindoro.

BlueFloat Energy’s Asia Pacific senior development advisor Jarek Pole said the country has conditions fitting for offshore wind technology, paralleling the country’s renewable energy goals to decarbonize the economy.

Pole also said there is an urgent need for large-scale renewable energy generation to meet the increasing electricity demand, as the current capacities are insufficient.

To aid in the growing demand, the firm aims to develop 7.6 gigawatts (GW) of offshore wind capacity in the Philippines, making it its largest market.

The investment would range from USD 2.5 million to USD 4 million per megawatt (MW) for bottom-fixed wind farms, while for floating wind projects, it would reach up to USD 6 million per MW.

Additionally, the company recently completed a systems impact study with the National Grid Corporation of the Philippines and is conducting a bathymetry survey to assess water depth at the sites.

The construction of the project is anticipated to begin by 2028, with the first phase of projects expected to be operational by 2031 or 2032.

Permits and regulatory frameworks are being refined in collaboration with government agencies like the Department of Energy (DOE) and the Department of Environment and Natural Resources (DENR).

The DOE has identified 10 ports for pre-feasibility studies, but port developers need assurance of their economic viability.

Philippines emerges as Southeast Asia renewable power pacesetter

Philippines emerges as Southeast Asia renewable power pacesetter

BY SING YEE ONG AND DITAS LOPEZ

BLOOMBERG

22 June 2024

The Philippines has leapfrogged its Southeast Asian neighbors to become a regional leader in planned clean-power projects as fewer investment restrictions and green-minded policies attract domestic and foreign cash.

The energy transition in coal-dependent emerging nations like the Philippines will determine the success of global efforts to hit net zero targets and curb the worst impacts of climate change. | BLOOMBERG

Changes including allowing full foreign ownership of renewable energy projects have already helped secure a pipeline of 99 gigawatts of wind and solar developments. That’s more than enough power to supply all Philippine households, and is ahead of Vietnam at 86 gigawatts and about five times higher than in Indonesia.

The energy transition in coal-dependent emerging nations like the Philippines will determine the success of global efforts to hit net zero targets and curb the worst impacts of climate change. Many middle-income nations are struggling, however, to balance the shift away from fossil fuels with growing energy demand and the need for economic growth.

Only 3% of the Philippines’ ambitious renewables pipeline is currently under construction. But it’s a step toward meeting the country’s goal of boosting the share of renewables in its electricity mix to more than a third by the end of the decade from about a fifth now.

At a clean energy forum in Manila last month, companies like Oslo-based renewables developer Scatec ASA were enthusiastic about the Philippines’ potential, especially in contrast with its neighbors where funding and regulatory issues have held back progress.

"In many of the other markets, there are still regulatory challenges,” said Scatec Chief Executive Officer Terje Pilskog. "But in the Philippines we see lots of opportunities to continue to grow.”

Other companies involved in renewables projects in the country include Japan’s Advantec, Singapore-based Vena Energy and local firms Citicore Renewable Energy Corporation and SP New Energy Corporation.

Successive governments in the Southeast Asia’s second-biggest country by population have relaxed restrictions for large-scale power projects. The Philippines has in recent years released an offshore wind development strategy, offered tariff and tax incentives, and opened the renewables sector to full foreign ownership. All this helped spur a 41% jump in clean energy investment to $1.3 billion in 2022 from the year before, according to BloombergNEF.

Interest from renewable developers has accelerated in recent years due to falling equipment costs and the domestic power sector becoming more familiar with how to build and operate facilities, said Lawrence Fernandez, head of utility economics at Manila Electric, the country’s biggest power retailer.

Solar panels on the rooftop of a mall in Quezon city, Metro Manila. Successive governments in the Philippines have relaxed restrictions for large-scale power projects. | REUTERS

Unlike many of its neighbors, where state-owned entities dominate power markets, the Philippines allows private firms to take part in the generation and sale of electricity.

"There is no single state entity which is a dominant player and that has allowed innovation to flourish,” said Ramnath Iyer, research lead for sustainable finance in Asia at the Institute for Energy Economics and Financial Analysis. Clear rules welcoming foreign investment make companies more comfortable putting money into the country, he said.

The Philippines has also mandated that electricity suppliers must increase energy from renewable sources by at least 2.52% every year from 2023, up from 1% a year in 2020. That was a crucial policy, according to Eric Francia, CEO of Philippine conglomerate Ayala’s energy unit ACEN Corp., and "should be enough to incentivize or motivate us to build more renewable energy plants.”

While investment in renewables capacity is projected to rise in most of the region over the next five years, the Philippines and Malaysia are set to lead that growth, while current front-runner Vietnam will see a drop, according to analytics firm Wood Mackenzie.

To truly accelerate its energy transition, however, the Philippines will have to surmount an array of challenges including the need to extend transmission lines to distribute power across the archipelago of more than 7,000 islands. It will also need to expand its grid capacity, boost storage and streamline the land permitting process.

Despite those challenges, the policy certainty in the Philippines has helped the country "leapfrog” over regional peers, said Ramesh Subramaniam, director general at the Asian Development Bank.

That’s despite Vietnam and Indonesia signing up to receive billions of dollars from Group of Seven Just Energy Transition Partnership deals, which were designed to finance their transition from coal and bring forward peak-emissions dates. The projects have faltered, however, because of restrictions on how the money can be spent, counterproductive local regulations, and insufficient technical preparation on the ground.

Such complications mean the region’s biggest polluters are likely to see emissions rise until well into the 2030s, according to BNEF, making room for the Philippines to spearhead renewable generation growth in Southeast Asia.

The country’s success is far from assured, however.

Without proper execution, projects might face delays, and the government needs to ensure there’s sufficient grid capacity from where the power is being generated, said the energy institutes’ Iyer. "The auctions have been done, projects have been awarded. Now the work has got to be done,” he said.

Philippines opens nation’s biggest solar-powered irrigation system

Philippines opens nation’s biggest solar-powered irrigation system

Patrick Jowett
PV Magazine (Germany)
10 June 2024

The Philippines has inaugurated a solar-powered irrigation system in the province of Isabela, in the northeastern part of the country.

The PHP 65.7 million ($1.1 million) project was constructed between July 2023 and February 2024 and boasts more than 1,000 solar panels. It can produce 739,200 W of power for its two submersible pumps, with each pump capable of discharging 12,800 gallons (48453 liters) per minute.

Philippines President Ferdinand R. Marcos Jr. said the project is the biggest solar-powered pump irrigation project in the country to date and could irrigate 350 hectares of rice fields, helping almost 237 farmers. Isabela is the biggest corn producer and the second-biggest contributor to palay production in the Philippines. 

“If we used to use oil-powered machines to flow water from irrigation canals to your fields, now we power it with electricity from sunlight. Free electricity from the sun so we can provide free irrigation,” said Marcos Jr at the inauguration ceremony. “Certainly because of the construction of this solar-powered pump irrigation project, in your barangay there will be a continuous flow of water in the irrigation systems, crops will be well taken care of, your harvests will increase, double to the product.” 

The project is the first in the Philippines to be constructed over an irrigation canal, meaning that the land cultivated by farmers will not be reduced. Marcos Jr said that 152 additional solar-powered pump irrigation projects are being constructed across the country, including 118 projects overseen by the government. He added that 82 solar irrigation projects have been completed and activated since 2023.

Despite its resources, the Philippines faces significant water scarcity. Government estimates made earlier this year show that 40 million Filipinos do not have access to potable water. Marcos Jr has therefore called for a reorganization of water agencies in the country to respond to water-related challenges, including balancing water requirements for irrigation, household and industrial use in underserved areas.

The Philippines National Irrigation Administration began to ramp up investment in irrigation projects to improve water and energy supply in 2020. The association has accepted 15 solar powered pump irrigation projects and two small irrigation projects in the province of Isabela, which could irrigate another 251 hectares of farm lands and benefit 867 farmers, said Marcos Jr.

In October 2023, the country’s first canal-top solar irrigation project was commissioned.

Recto: PH an 'economic giant' by 2033

Recto: PH an 'economic giant' by 2033

By Anna Leah Gonzales
Philippine News Agency
May 27, 2024

MANILA – The Philippine economy is expected to continue posting strong growth and is seen to be one of the economic giants by 2033, Department of Finance (DOF) Secretary Ralph Recto said on Monday.

In his speech at the Philippine Economic Briefing at the Philippine International Convention Center in Pasay City, Recto said global research firms and analysts expect the Philippines to grow by 5.8 to 6.3 percent this year, outperforming ASEAN economies.

For 2025, Philippine economic growth is projected to hit 5.9 percent to 6.5 percent.

"This trajectory puts us firmly on course to become a trillion-dollar economy in less than a decade. This means that by 2033, our economy will nearly triple in size, placing us in the league of economic giants like China, Japan, India, and South Korea," Recto said.

"And we are expected to continue outpacing the growth of Asia's economic powerhouses in the years to come. Fast forward to 2075, the Philippines will overtake France to become the 14th largest economy in the world," he said.

Recto assured the public that the government is addressing bottlenecks to encourage investments in high-priority sectors.

"These include infrastructure, renewable energy and power, critical minerals, financial services, healthcare, consumer and retail, manufacturing, and ITBPM (information technology and business process management), among others," he said.

Recto said the government is also intensifying efforts to address investor concerns and is doubling efforts to harness the country's workforce.

He said these efforts aim to provide pathways out of poverty for about 14 million Filipinos, or cutting poverty incidence to 9 percent, before or at the end of the President's term.

"This is the single most important number that we aim to achieve. Even with headwinds along the way, there are a lot of reasons to be confident and excited about our nation’s future," he added. (PNA)

US, Philippines to train Filipinos in nuclear power

US, Philippines to train Filipinos in nuclear power

Inquirer.net
21 May 2024

MANILA, Philippines — The Philippines and the United States agreed Tuesday to train Filipinos how to build and operate nuclear power plants, as the Southeast Asian country seeks to boost its electricity supply.

The announcement comes after Manila and Washington struck a nuclear cooperation agreement in November that cleared a path for US investment to jumpstart atomic power in the energy-hungry Philippines.

Under Tuesday’s deal, the Department of Energy and the Philippine-American Educational Foundation will offer scholarships and exchange programs for Filipinos to learn about civil nuclear power and renewable energy.

“This will help the Philippines develop the skilled workforce needed to build a clean energy infrastructure, including the ability to operate state of the art nuclear power plants,” Daniel Kritenbrink, US Assistant Secretary of State for East Asian and Pacific Affairs, told a trade forum in Manila.

Energy Secretary Raphael Lotilla said the “advanced training” will ensure the country has the “human resources that are needed” for the sector.

President Ferdinand Marcos Jr. has signaled determination to adopt nuclear power in the country and has even flagged the possibility of reviving a mothballed $2.2 billion plant built during his father’s dictatorship.

The deal signed in November on the sidelines of an Asia-Pacific summit in San Francisco committed the Philippines to safeguards against the use of transferred nuclear material to produce nuclear weapons.

Known as 123 agreements after their section in the US Atomic Energy Act, the pacts are critical for investment by US nuclear companies, which are wary of running afoul of laws related to proliferation.

The United States also plans to set up a civil nuclear industry working group for Southeast Asia based in Manila.

The group will “connect Philippine partners with US companies”, helping to “accelerate the Philippines transition to clean and safe nuclear energy”, Kritenbrink said.

The Philippines — regularly affected by electricity outages — relies on imported carbon-belching coal for more than half of its power generation.

It has some of the region’s highest energy costs and faces a looming crisis as the Malampaya gas field, which supplies about 40 percent of power to the archipelago’s main island Luzon, is expected to run dry within a few years.

As part of its climate goals, the Philippines aims for renewable energy — not including nuclear — to make up 50 percent of its power generation by 2040.

PH green investment soars

PH 2023 green investments up by 57%

Story by The Manila Times
18 March 2024

THE Philippine private sector's investment in the green economy reached $1,464 million in 2023, rising by 57 percent when compared to the previous year. The country continues to make an upward trajectory in the 2024 Green Index Score, rising by three ranks to reach 39 out of 100. However, an investment gap exists and significant efforts must be made to meet the required capital investment of $16.6 billion.

This was the assessment made by the 5th edition of "Southeast Asia's Green Economy 2024 Report: Moving the needle," which was published by Bain & Co., GenZero, Standard Chartered and Temasek. The report studies the progress made by Southeast Asian countries in transitioning toward a greener economy, and then breaks down the achievements, challenges and outlook for each country.

It mainly says that Southeast Asia has a clear opportunity to leverage the coming transition for competitiveness and economic growth. Unlocking its green economy could be worth another $300 billion annually by 2030. The current models that investors often consider include green fuel sources, process optimization, improved farming practices, nature-based solutions and decarbonization.

In the Philippines, domestic investors' support of infrastructure for green energy has been "brisk." What is notable is the significant increase in waste management investment while investment momentum continues in the solar sector in 2023. For example, the Manila Water Co. has put in $682 million in investments in waste management while electricity distributor Meralco has acquired $285 million worth of shares in the solar sector.

Meralco has also invested in the Solar Power New Energy Corp., a developer of solar farms that intends to carry out "the largest solar project in the world." This planned solar project in Luzon is expected to develop 3,500 megawatts (MW) of solar panels and 4,000 MW hours of battery energy storage.

Other movements have spurred investment rise. The Renewable Energy Act was amended in 2023 to enable full foreign ownership of renewable energy projects. "Green Lanes" have also been established to expedite processes for investors and their companies to obtain licenses and permits.

The Philippines Rural Development Project significantly enhanced farm and fishery productivity by supporting smallholders. The Organic Agricultural Act provides tax incentives to organic agriculture entities and explicit support for the deployment and development of organic fertilizer.

An additional annual report on sustainability, including greenhouse gas emissions reporting, has been made mandatory for all publicly listed companies.

One persistent major challenge is the continuing deforestation, which happens because of commodity-driven forest loss from mining, forestry and other urbanization activities.

For the Philippines to accelerate the development of its green economy, the report recommends working toward successful blended finance cases, further developments in renewables regulations and strengthening regional collaboration.

Mike Samson, Standard Chartered Bank's chief executive officer and head of client coverage for the Philippines and the Asean, names three key areas where Southeast Asian countries, including the Philippines, can synergize: first, technological transfer and co-innovation of clean technologies; second, cross-border investment in areas like the greenification of manufacturing and processing of nickel for batteries; third, "finding shared agreement around key standards across many platforms — in batteries, climate taxonomy, recognition of carbon credits and joint papers on climate positions."

ADB to finance energy projects in the Philippines

ADB eyes direct financing of renewable energy projects in Philippines

Story by Louise Maureen Simeon 
Philstar Global
05 May 2024

TBILISI — The Asian Development Bank (ADB) is looking at directly engaging with the Philippine government on financing renewable energy (RE) projects as part of its country partnership strategy (CPS) over the medium-term.

In an interview with The STAR here, ADB country director for the Philippines Pavit Ramachandran said RE is an area that the multilateral lender is excited about as it crafts the new CPS.

“It would be a relatively new sector from the sovereign public sector side because as you know, the Philippines is a largely privatized market,” Ramachandran said.

“But given the focus and the policy ambition to increase renewable energy, there’s a lot of other aspects in the sector that need to be also strengthened,” he said.

For now, ADB is doing work with the private sector in terms of RE through loan deals such as the P5.5-billion sustainability-linked loan with ACEN Corp. of the Ayala Group in December last year.

Just last week, ADB also inked a P675-million loan agreement with Buskowitz Solar Inc. for the installation of solar panel systems on commercial and industrial buildings’ rooftops in the Philippines.

However, Ramachandran said ADB has not directly engaged on the sovereign side.

“Transmission capacity needs to be enhanced. You need to have a lot of the associated infrastructure, for example, port development for offshore wind. There’s also a need for de-risking for sectors like geothermal,” Ramachandran said.

“So that’s something we are looking at in these different areas and what would be the appropriate modality and lending scope,” he said.

In the Philippines, the government has been pushing for the use of renewable and indigenous energy sources amid the need to bring down the country’s dependence on energy imports.

Data showed that only 29 percent of the country’s current energy mix comes from renewables. The Department of Energy would like to bring it up to 35 percent by 2030 or to 50 percent by 2040, as outlined in the RE roadmap.

Further, Ramachandran emphasized that human development is another area that ADB will prioritize in the CPS 2024-2029 for the Philippines to fully tap into its demographic potential.

This is in relation to the Philippines’ goal of securing an upper-middle-income status amid the need to secure human capital foundation through education, health and social protection.

Billions worth of projects approved

Over P600 billion projects approved in 4 months – BOI

Story by Louella Desiderio
Phulstar Global
22 April 2024

MANILA, Philippines — Investments approved by the Board of Investments (BOI) have reached more than P600 billion in the first four months of the year.

In a press briefing, BOI director Sandra Marie Recolizado said P607.22 billion worth of investments have been approved by the investment promotion agency for the January to April 17 period this year.

Compared with the P527.24 billion worth of investment approvals in the January to April period last year, she said the total investments approved so far for this year increased by 15 percent.

She said this year’s approved investments are for 117 projects and are mostly from domestic investors.

In particular, P494.37 billion of the total approved investments for this year are from domestic sources.

Trade Secretary and BOI chairman Alfredo Pascual said it is important to have local firms invest within the country as they also play a role in encouraging foreign firms to consider the Philippines for their business expansion.

“What we really want to encourage in the Philippines is for domestic investors to commit their capital to projects in the Philippines rather than bringing out the money, their capital outside the Philippines,” he said.

He said foreign investors are looking at whether local firms are investing within the country.

In terms of sectors, Recolizado said the majority of the approved projects this year are in renewable energy.

“The biggest project that we have approved is the Ahunan power project,” she said, noting the project was cleared by the BOI just last week.

Located in Laguna, Ahunan Power Inc.’s  hydropower resource and pumped storage hydroelectric power project has a project cost of P296.98 billion.

Ahunan Power is a wholly owned subsidiary of tycoon Enrique Razon Jr.’s Prime Infrastructure Capital Inc.

Recolizado said the second largest project approved by the BOI is the P83.70 billion wind energy project of Ivisan Windkraft Corp., which is 75 percent Singaporean-owned.

Ivisan Windkraft’s wind energy project will be located offshore of Cavite.

Indonesia and Philippines lead green investments in SEA

Indonesia and the Philippines contributed bulk of US$6.3 billion green investment hike in Southeast Asia

But it is Singapore and Vietnam which have made the most progress in reaching climate goals over the past year, as the region grapples to meet US$1.5 trillion required to achieve 2030 emissions targets.

By Hannah Alcoseba Fernandez
Ecobusiness.com
17 April 2024

Indonesia and the Philippines contributed most of the US$6.3 billion in green investments made in Southeast Asia over the last year, according to a study released on Monday by consultant Bain & Company and Singapore state investor Temasek.

The ongoing construction of  a wastewater treatment facility which is just part of Manila Water’s Three-River System Masterplan. Image: Manila Water 

The 2023 outlay was a 20 per cent increase on 2022, due to the rise in investments in solar and wind projects as well as spend on renewables-powered data centres. 

Despite making sizeable increases in green investments, the Philippines and Indonesia lagged in terms of how their national targets cascaded down to policies and businesses, according to the report’s index, which provides a snapshot of how each country is progressing towards their decarbonisation targets relative to their peers.

The Philippines is the only country in the region which has yet to announce a net zero goal, although it has pledged to the United Nations that it will reduce harmful greenhouse gases by 75 per cent by 2030.

Indonesia, Southeast Asia’s largest economy, is currently pursuing a 2060 target for emissions neutrality, but has been struggling to receive favourable funding terms from foreign financiers to phase out coal power.

Singapore and Vietnam were not able to lock in large-scale renewable energy deals unlike in previous years, but remain regional leaders in terms of national targets that are sufficiently aligned with the Paris climate accord, which aims to cap global warming at 1.5°C above pre-industrial levels. 

The Philippines and Indonesia make up most of the US$6.3 billion in private investments towards decarbonisation goals in 2023. Malaysia and Laos have made the most significant increases in climate-friendly investments compared to 2022, at 326 per cent and 126 per cent, respectively. Image: Southeast Asia Green Economy 2024 report

“While we do see relative differences in the progress different countries in the region are making, each one is moving forward in different ways. The idea of the index was to try to be transparent around what more needs to be done to be able to close the gap to move faster,” said Dale Hardcastle, director of global sustainability centre, Bain & Company. 

Indonesia raised US$1.6 billion, mostly for a polyethylene terephthalate (PET) plastic recycling facility in Java. The Philippines attracted investments worth US$1.5 billion, almost half of which will go on the construction of a wastewater treatment facility across the municipalities of Marikina, San Juan River, Pasig, and Laguna.

Malaysia made the most significant increase in climate-friendly investments compared to last year, with US$530 million spent on data centres in Johor and Kulai to be powered by solar, while a large-scale project to unlock Laos’ renewable potential is being carried out by foreign investors.

Vietnam invested less than US$1 billion, as it awaited direction from its Power Development Plan 8 (PDP8), an ambitious masterplan currently being finalised to detail how it would reach its committment to net-zero emissions by 2050.

Singapore made no large solar deals of more than US$100 million. Its total green investment last year was US$900B, almost half of which included data centers of SingTel that rely on clean energy power. 

‘Shareholder activism’ lacking in Southeast Asia

While climate investments increased in 2023, Southeast Asia has an investment gap of US$1.493 trillion to fill by 2030 to reach its decarbonisation goals.

A key reason for this is a lack of shareholder activism pushing Southeast Asia’s corporates to decarbonise, Hardcastle said at Ecosperity, a climate conference held in Singapore.

“Our region lacks some of the shareholder activism that we see in other places that are taking action. Despite the growing pressure that anyone in the financial sector can attest to today, that is still not translating into the investment that we require,” he said.

In Europe and the United States, shareholders have pressured corporates to pivot towards sustainability. 

Shell faced a shareholder rebellion in January, as large investors including the United Kingdom’s biggest pension scheme prepared to back a climate activist resolution.

Twenty-seven investors that own about 5 per cent of the company agreed to back a resolution filed by the Amsterdam-based shareholder activist group Follow This that called for the oil and gas major to align its medium-term emissions reduction targets with the 2015 Paris agreement.

Follow This likewise sought a vote on ExxonMobil’s climate strategy at its annual shareholder meeting in May.

However, the investor group up dropped its petition for Exxon shareholders to vote on whether the company should set emissions reduction targets after the United States oil company legally challenged their plans.