Clean energy momentum builds in the Philippines
The Philippines is expanding its renewable energy sector. In 2024, new clean power capacity reached record levels. Policy reforms and private investment are driving growth. The country is moving closer to its climate and energy targets.
In 2024, the Philippines added 794 megawatts of new renewable energy capacity. This marks a significant step in the country’s transition towards a more sustainable energy system.
According to the Department of Energy, this is the highest annual increase in recent years. Previous years saw more modest growth, with 230 megawatts added in 2021, 328 megawatts in 2022 and 201 megawatts in 2023.
Strong policy support behind the growth
The sharp rise in 2024 reflects the impact of policy reforms, improved permitting processes and strong private sector involvement. It also supports the national targets of reaching 35 per cent renewable energy in the power mix by 2030 and 50 per cent by 2040.
The Renewable Energy Development Plan has introduced several measures to accelerate progress. These include simplified approval procedures for solar and wind projects, amendments to the Renewable Energy Act allowing full foreign ownership in renewable energy ventures and the launch of the Green Energy Auction Programme to promote competitive pricing.
Challenges and outlook for continued expansion
Despite the progress, challenges remain. The country’s transmission and distribution networks are under pressure to keep pace with the rapid growth in renewable installations. In response, the Renewable Portfolio Standards were updated in 2023, increasing the minimum annual renewable energy requirement for grid-connected participants from one to 2.5 per cent. This change has helped stimulate demand, expand grid capacity and reduce solar panel costs.
Experts note that continued momentum is essential. World Wide Fund for Nature (WWF-Philippines) has stated that the country must install at least one gigawatt of new renewable capacity each year to meet its 2030 climate goals. The strong performance in 2024 suggests that the Philippines may be moving in the right direction