Philippines Energy Transition Strategies
The Philippines launched its Philippine Energy Transition Strategies under the Philippine Energy Plan for 2023 to 2050 in November 2023. The energy transition goal is aimed at increasing access to affordable energy, improving reliability and resiliency, and expanding the use of clean and sustainable energy in the country. The energy transition strategies have four major components which include increasing the contribution of renewable energy (RE) to the power generation mix to from the current 32% to 35% by 2030, with a further expansion to 50% by 2040. The plan also seeks to build and develop a smart and green transmission system, expand the utilization of mainstream energy efficiency and conservation efforts; and make progress on the decarbonization of the transport sector through electric vehicles.
Key clean energy opportunities included in the energy transition strategies are:
- Renewable Portfolio Standards of 1% to 2.52% minimum annual and Green Energy Auction Program: This will focus on achieving the RE targets and accelerate the deployment of RE projects and clean energy technologies and solutions.
- Renewable Energy Investments up to 100% foreign ownership: The Philippines now allows up to 100% foreign ownership and opens up opportunities for the supply of geothermal, biomass, solar, wind, ocean, and tidal wave technologies.
- Offshore Wind Development (OSW): This sector will focus on streamlined environmental compliance process for the OSW pre-development and exploration activities.
- Smart and Green Grid Plan (SGGP): The rapid expansion of the grid to accommodate new sizeable RE capacity and connect demand centers with new sources of supply. Plans to create a third-party grid concession will open opportunities for transmission and distribution advance technologies.
- Energy Virtual One-Stop Shop System (EVOSS): Under Republic Act No. 11234, prospective energy companies can apply, monitor, and receive all the necessary permits, through the EVOSS online platform.
- Decarbonization of the transport sector: Implementation of the Comprehensive Roadmap for the Electric Vehicle (EV) Industry with minimum 10% EV share in the vehicle fleet by 2040 under the Business-as-Usual Scenario, 50% of all vehicle fleets by 2040 under the Clean Energy Scenario. The Philippine Government will also establish the infrastructure for EVs, and formulated policies for the utilization of sustainable fuels.
The Philippine Energy Transition Strategy will promote a range of export and investment opportunities across the clean energy sector including future civil nuclear and hydrogen generation. The country is driven by the private sector with top energy conglomerates announcing individual decarbonization, sustainability and energy transformation projects.
For more information, please contact Thess Sula, Commercial Specialist, U.S. Commercial Service Philippines, at Thess.Sula@trade.gov.