Market Intelligence
Renewable Energy Philippines Trade Opportunities

Philippines Renewable Energy

The Philippines, an archipelago of over 7,000 islands located in Southeast Asia, is blessed with abundant renewable energy resources. With its strategic location in the Pacific Ring of Fire and exposure to the trade winds, the country boasts a significant potential for harnessing renewable energy (RE).  The RE sector is comprised of geothermal resources (14.6%/1,932 MW), solar/wind energy (1.4%; solar at 1,382 MW; wind at 443 MW), hydropower (4.1%/1,161 MW), and biomass (12.6%/759 MW).  The Philippine DOE has existing RE policies to encourage private domestic and foreign investment drive growth in the industry and reduce the dependence on expensive energy imports.  Policies include RE portfolio standards, net metering, green energy option/auction programs, and the RE market trading system.  In November 2022, the Philippine government opened RE projects to 100% foreign ownership to allow faster entry of RE investments.  The following presents RE opportunities in the Philippines, highlighting key sectors and emerging trends. 

Solar Energy:  The country is ramping up solar projects, including floating solar and distributed solar, to meet RE targets.  The outlook for distributed solar remains positive, particularly the use of solar systems (PVs, solar home systems, solar rooftops,) and microgrids to boost electrification rates in remote regions of the country.   

Wind Energy:  Wind farms, featuring towering turbines, have been established in several wind energy sites, contributing to the country’s renewable energy capacity. The government’s feed-in-tariff system has encouraged investments in wind energy projects.  DOE priority policies have boosted offshore wind development projects.  

Hydropower: The country possesses considerable potential in hydropower. The National Renewable Energy Program targets the development of small to medium-sized hydropower plants, both run-of-river and reservoir-based.  Hydropower sector has room for further expansion. 

Geothermal Energy: The Philippines is the second-largest producer of geothermal energy in the world, after the United States.  Low-to-medium enthalpy geothermal technologies are being adopted by major geothermal producers.  Sizable geothermal fields have been operational for decades, providing a stable source of clean energy. 

Biomass and Biofuels: And biogas facilities have been established to convert agricultural waste into energy.  The production of biofuels, like biodiesel and ethanol from crops (e.g., sugarcane and coconut), offers another avenue for renewable energy development. 

Emerging Trends:  In recent years, the Philippines has demonstrated interest in emerging renewable energy technologies, including marine renewable energy from tidal and ocean energy.  Likewise, other energy efficiency projects and energy storage ancillary services are in different stages of feasibility development, and technical and financial evaluation.   

Challenges and Future Outlook: Grid integration and the intermittency of renewable sources are ongoing concerns for the RE sector. The need for infrastructure development, energy storage solutions, and regulatory improvements are paramount to realizing the full potential of renewable energy.   

For additional information and to connect your companies with these opportunities, contact