In 2022, the Philippines’ economy was ranked 38th in the world in gross domestic product (GDP). The country’s economy is based on the export of integrated circuits, office machine parts, electric transformers, insulated wire, semiconductors devices, and nickel ore.
In 2016, the Philippines signed the Paris Climate Agreement, committing to a 70% reduction in greenhouse gases by 2030, relative to a business-as-usual scenario.
In 2019, Philippine President Rodrigo Duterte announced plans to install 30,000 MW of new renewable energy capacity by 2030.
Power Generation Capabilities
In 2021, 99.5% of the people in the Philippines had access to electricity. In 2022, utilities used coal (46.2%), renewable energy (22.6%), oil (18.4%), and natural gas (14.3% ) to generate electricity in the Philippines. Hydropower and geothermal are the dominant types of renewable energy used to generate electricity in the Philippines.
Recent renewable energy projects in the Philippines include:
- 3,500 MW Solar + 500 MW Energy Storage Project – Philippine company, Solar Philippines Nueva Ecija Corporation is continuing work on a massive solar plus energy storage project on the island of Luzon.
- 1,200 MW Solar Project – Philippine company, Acen Renewables is continuing work on Palauig 2 Solar project on the island of Luzon at a site approximately 100 miles northwest of Manila.
- 500 MW Solar Project – Philippine company, Solar Philippines is continuing work on a solar project at a site approximately 75 miles north of the nation’s capital, Manila. The project is forecast to be commissioned in 2024.
- 115 MW Solar Project – In January 2021, Philippine renewable energy company, PH Renewables commissioned solar project at a site approximately 10 miles east of Manila.
- 100 MW Solar Project – Philippines company Firmgreen Phils is continuing work on Nueva Ecija Solar Power Project on the island of Luzon. The project is scheduled to be commissioned by year-end 2023.
- 80 MW Energy Storage Project – In June 2021, Philippine power company, SMC Global Power Holdings commissioned an energy storage projects to support two 20 MW solar project at sites approximately 100 miles north of Manila.
- 75 MW Solar Project – In December 2021, Philippine energy company, AC Energy Philippines commissioned a solar project at a site approximately 40 miles north of Manila.
- 75 MW Solar Project – In April 2022, AC Energy commissioned the AC Energy Philippines Solar PV Park II project at a site approximately 100 miles northwest of Manila.
- 63 MW Solar Project – In April 2021, Singaporean renewable energy company, Modern Energy Management commissioned a solar project at a site approximately 100 miles north of Manila.
- 40 MW Energy Storage Project – In February 2022, Philippine company AC Energy commissioned the Alaminos Energy Storage project on the island of Luzon.
The Philippines imports fossil fuels (coal, oil, and natural gas) for power generation and transportation. In 2021, the nation imported U.S. $9.04 Billion of refined petroleum and U.S. 2.46 Billion of coal. The import of costly fossil fuels is the reason the Philippines has one of the highest electricity costs in Asia.
On 24 February 2022, Russia invaded Ukraine, prompting the European Union, United Kingdom, United States, Canada, Japan, South Korea, Australia, and New Zealand to place economic sanctions on Russian imports and exports. As a result, the crude oil and natural gas prices increased by over 50% from May 2021 to May 2022.
The Philippines has significant undeveloped renewable energy resources, including solar, geothermal, onshore wind, offshore wind, hydropower, and biomass. These renewable energy resources could easily replace the fossil fueled power plants which currently generate the majority of the nation’s electricity.
Renewable energy project development are surging in the Philippines due to costly fossil fuel imports.
Website – “Our Energy Conundrum”
Jack Kerfoot is a scientist, energy expert, and author of the book FUELING AMERICA, An Insider’s Journey and articles for The Hill, one of the largest independent political news sites in the United States. He has been interviewed on over 100 radio, podcast, and television stations from New York City to Los Angeles on a diverse range of energy issues.