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Congress study says Philippines needs investments to manage renewable energy transition costs

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MW Mosqueda
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The Philippines will need to mobilize significant investments in renewable energy, grid integration and supporting infrastructure as it seeks to decarbonize its power sector while balancing energy security, affordability and sustainability, according to a policy paper by Congress’ research arm.

The Congressional Policy and Budget Research Department (CPBRD), in a discussion paper titled Renewable Energy Transition and the Costs of Decarbonization in the Philippines, said the country faces the challenge of pursuing a low-carbon energy transition despite contributing negligibly to global greenhouse gas emissions.

The paper said decarbonization in the Philippines requires a shift toward cleaner energy sources, particularly renewable energy, but the transition entails costs that need to be carefully managed.

“The transition to renewable energy entails significant upfront costs,” the report said, citing the need for investments in renewable energy generation, transmission networks, grid flexibility and energy storage systems.

The study comes as the Philippines targets increasing the share of renewable energy in the power generation mix to 35% by 2030 and 50% by 2040.

According to the CPBRD, the country’s energy transition must address the “energy trilemma” of affordability, reliability and sustainability while supporting economic growth.

The paper said the Philippines remains vulnerable to global fuel price volatility and fuel supply disruptions because of its dependence on imported fossil fuels.

Developing indigenous renewable energy resources such as solar, wind, hydropower, geothermal and biomass could help reduce that exposure and strengthen energy security, it said.

However, the report said expanding renewable energy capacity alone would not be sufficient.

“The integration of variable renewable energy sources requires investments in transmission networks, grid flexibility and energy storage systems,” it said.

The CPBRD said supportive policies would be needed to mobilize private sector investments, reduce risks and address barriers to renewable energy development.

These include maintaining a stable regulatory environment, improving access to financing, streamlining permitting processes and strengthening policy implementation.

The paper also highlighted the need for a “just transition,” saying the shift away from fossil fuels should take into account the social and economic impacts on affected workers and communities.

It said renewable energy development could generate national benefits, including reduced local air pollution, lower greenhouse gas emissions, new investments, technological innovation and job creation.

The findings come as the Philippines ramps up renewable energy development through the Green Energy Auction Program, foreign ownership liberalization in the renewable energy sector and initiatives designed to speed up strategic investments.

The CPBRD said careful policy planning and sustained investment would be needed to ensure that decarbonization supports energy security, economic resilience and long-term sustainability.

For the Philippines, the report said the renewable energy transition is not only an environmental objective but also part of a broader strategy to build a more secure, affordable and resilient energy system.

Philippines, Germany pledge deeper renewable energy partnership

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MW Mosqueda
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Philippines Germany Renewable Energy Deal
President Ferdinand R. Marcos Jr. and German President Frank-Walter Steinmeier reaffirm stronger Philippines-Germany cooperation in trade, defense, and renewable energy during a bilateral meeting at Malacañan Palace in Manila on Tuesday (June 16, 2026). Photo: PCO

The Philippines and Germany pledged to deepen cooperation in renewable energy, with President Ferdinand R. Marcos Jr. on Tuesday highlighting German technology and investment as important to the country’s clean energy transition.

Speaking after bilateral talks with German President Frank-Walter Steinmeier at Malacañang Palace, Marcos said the two countries share ambitions in renewable energy and are well positioned to work together by combining Germany’s technological expertise with the Philippines’ abundant natural resources.

“We share ambitions in renewable energy collaboration, leveraging Germany’s technology and the Philippines’ natural resources, making us natural partners in this sector,” Marcos said in a joint statement.

The renewed commitment comes as the Philippines ramps up efforts to expand clean energy capacity and attract foreign investment into the sector.

The government aims to increase the share of renewable energy in the country’s power generation mix to 35% by 2030 and 50% by 2040, while policy reforms allowing up to 100% foreign ownership of renewable energy projects have opened new opportunities for international investors.

The Philippines has also been actively courting European investment in renewable energy as it seeks to reduce its reliance on imported fossil fuels and strengthen energy security amid rising electricity demand.

Germany is regarded as one of the world’s leaders in renewable energy development through its Energiewende, or energy transition strategy, with expertise spanning offshore wind, solar power, battery storage, green hydrogen and power grid technologies.

The Philippines has been pursuing similar priorities, including the development of offshore wind projects, utility-scale solar farms, energy storage systems and modern transmission infrastructure needed to integrate more renewable power into the national grid.

“Our relations with Germany are important not just because our portfolio of cooperation spans a wide array of sectors, but because these partnerships and projects have proven to be successful and beneficial to our national development efforts,” Marcos said.

The two leaders discussed broader cooperation covering trade and investment, climate change, economic development and labour, with renewable energy identified as one of the priority areas for future collaboration.

Germany has also supported Philippine development initiatives through the German Agency for International Cooperation (GIZ), including programmes focused on climate resilience, sustainable development, technical training and capacity building.

Beyond energy cooperation, Marcos described Germany as the Philippines’ largest trading and investment partner within the European Union, with bilateral trade reaching around $5.5 billion and net foreign direct investments amounting to $10.26 million in 2025.

German companies including Siemens, Lufthansa Technik, Deutsche Bank, Bayer and Bosch have established operations in the Philippines, contributing to economic growth and technology transfer.

Marcos also welcomed Germany’s support for the swift conclusion of a free trade agreement between the Philippines and the European Union, with the sixth round of negotiations held in Manila in May.

The two countries likewise reaffirmed their commitment to a rules-based international order and discussed regional and global security issues, including developments in the Indo-Pacific.

Steinmeier said his state visit underscored Germany’s commitment to strengthening ties with the Philippines as a like-minded partner.

“Our cooperation is not only marked by international and regional developments. Our peoples too, continue to grow together,” Steinmeier said.

The German president also highlighted the contributions of around 45,000 Filipinos living and working in Germany, many of whom are employed in healthcare and other skilled professions.

The renewed commitment comes as the Philippines seeks to attract more foreign participation in renewable energy projects following policy reforms that opened the sector to full foreign ownership.

European partners, including Germany, are expected to play an increasing role in areas such as offshore wind, solar power, battery storage, grid modernisation and other clean energy technologies.

PNB backs 82-MWp Isabela solar project with P3bn financing

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MW Mosqueda
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Artist's rendition.

Philippine National Bank (PNB) has approved a P3-billion project finance facility for the construction of an 82-megawatt-peak (MWp) solar power plant in Isabela province awarded under the government’s Green Energy Auction Program.

The financing was extended to Linglingay Power Corp., a wholly owned subsidiary of Hexa Philippines Holdings, Inc., for a ground-mounted solar power plant scheduled to begin commercial operations by December.

The project was awarded under the Department of Energy’s Green Energy Auction Program Round 2, which seeks to accelerate renewable energy investments through competitive bidding.

Once operational, the facility is expected to generate enough electricity to supply around 25,000 to 35,000 Filipino households annually while helping reduce carbon emissions.

“This partnership reflects PNB’s vision of powering a cleaner, more sustainable future,” PNB President and Chief Executive Officer Edwin R. Bautista said in a statement.

Hexa Philippines Managing Director Christopher Chua said the financing marks another milestone for the company’s expansion plans.

Chua said Hexa is advancing nearly 600 MWp of solar capacity across its operating and under-construction portfolio and aims to exceed 1 gigawatt-peak (GWp) of installed capacity in the Philippines.

The financing underscores the growing role of domestic banks in supporting the country’s energy transition as developers seek capital to build renewable energy projects awarded under government programmes.

The project adds to a growing pipeline of utility-scale solar developments under the Green Energy Auction Program, as the Philippines seeks to attract private investment to meet rising electricity demand and expand its renewable energy capacity.

Norwegian firms eye opportunities in Philippine offshore wind sector

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MW Mosqueda
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Norwegian offshore wind and maritime companies are eyeing opportunities in the Philippines, holding talks with government officials and industry players as the country seeks foreign expertise to help build its emerging offshore wind industry.

A 10-company Norwegian delegation met with officials from the Department of Energy (DOE), including Energy Secretary Sharon Garin and senior department officials, to discuss how Norway’s decades of experience in offshore energy could support the Philippines’ renewable energy ambitions.

The Philippines sees offshore wind as a key part of its energy transition and efforts to improve energy security, although the sector will require substantial investments in ports, transmission infrastructure, marine logistics and specialized services.

The Norwegian mission also participated in an industry forum at the headquarters of the Asian Development Bank titled “Accelerating Offshore Wind in the Philippines: Policy, Innovation, and Supply Chain Readiness,” held alongside the Asia Clean Energy Forum.

Organized by the Royal Norwegian Embassy in Manila, Norwegian Energy Partners (NORWEP), the DOE, the Global Wind Energy Council and the Global Offshore Wind Alliance, the event brought together more than 200 representatives from government, developers, financiers, marine logistics firms and global supply chain companies.

Discussions focused on the infrastructure and technical requirements needed to support offshore wind projects, including port development, offshore grid connections, marine transport, safety standards and workforce training.

The Norwegian delegation also engaged with offshore wind developers operating in the Philippines, including Copenhagen Offshore Partners, Triconti ECC Renewables, Nexif Ratch Energy, and ACEN, to discuss supply chain readiness and maritime logistics.

Participating Norwegian companies included DNV, Fred. Olsen Windcarrier, Fred. Olsen 1848, Glamox, the Norwegian Geotechnical Institute, Reach Subsea, Øglænd System Group and Jorn Energy Corporation.

The Philippines has identified offshore wind as a key component of its long-term energy transition strategy, with the government seeking to attract investments and develop the regulatory and technical capabilities needed to support large-scale projects.

The mission highlights growing international interest in the Philippine offshore wind market, where foreign developers, technology providers and maritime service companies are positioning for projects expected to attract billions of dollars in investment over the coming years.

Renewable energy dominates Philippine Green Lane approvals with P344.6B pipeline

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MW Mosqueda
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REPower Matabas
Photo by Zbynek Burival on Unsplash.

Philippine renewable energy projects worth P344.62 billion secured certification under the government’s Green Lane initiative in the first five months of 2026, accounting for nearly all strategic investments approved during the period as the country accelerates its clean energy transition.

The Department of Energy (DOE) said 13 renewable energy projects were certified under the expedited permitting programme from January to May, representing 99.6% of the P346 billion in total Green Lane investments approved during the period. The projects are expected to generate 38,716 direct jobs.

The Green Lane initiative, established under Executive Order No. 18 in 2023, was designed to speed up the processing of permits and licenses for strategically important investments.

The programme created a One-Stop Action Center for Strategic Investments under the Board of Investments and required government agencies and local government units to establish dedicated “green lanes” to streamline approvals for qualified projects.

Energy Secretary Sharon Garin said the latest approvals reflect growing investor confidence in the country’s renewable energy sector and the government’s efforts to reduce regulatory bottlenecks.

“The P344.62 billion that investors are committing to renewable energy under the Green Lane is proof that the Philippines is a destination for clean energy business, and that Filipino workers will be the first to benefit,” Garin said in a statement.

The DOE said the projects, which include solar, wind, hydro and geothermal developments, would help meet rising electricity demand while supporting the country’s energy transition goals.

The Philippines aims to increase the share of renewable energy in its power generation mix to 35% by 2030 and 50% by 2040 as it seeks to strengthen energy security and reduce dependence on imported fossil fuels.

Executive Order No. 18 identifies clean energy as one of the priority sectors eligible for Green Lane treatment, alongside other strategic industries intended to attract significant domestic and foreign investments and support the country’s long-term economic development.

Since the Green Lane programme took effect in February 2023, the Board of Investments has certified 237 strategic investment projects worth P6.32 trillion that are projected to create more than 420,000 jobs, according to the DOE.

Renewable energy has accounted for the largest share of those approvals, with 182 projects valued at P5.41 trillion certified to date, underscoring the sector’s growing role in the country’s investment pipeline.

The DOE attributed the steady flow of renewable energy investments to streamlined regulatory processes and policy reforms aimed at encouraging private sector participation in the energy transition.

The agency said it would continue working with government agencies, local government units and industry stakeholders to help certified projects move from development to commercial operation.

The latest Green Lane approvals highlight the increasing role of renewable energy in the Philippines’ investment agenda as the country seeks to expand power generation capacity, create jobs and attract long-term capital into the energy sector.

Korean firms sign MoU for up to 1,000-MW renewable energy push in Mindoro, off-grid provinces

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MW Mosqueda
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Oriental Mindoro Solar

South Korean energy companies have signed an agreement to explore the development of up to 1,000 megawatts (MW) of renewable energy projects in Occidental Mindoro and other off-grid Philippine provinces, as the island grapples with daily power outages and heavy reliance on diesel generation.

A memorandum of understanding (MoU) was signed between Occidental Mindoro Governor Eduardo Gadiano, representatives of local government units, Wizzard Energy Corporation, South Korea’s CS-Tech Co., Ltd., Development Advance Solution Co., Ltd. (DASCO), and their strategic partners.

The proposed initiative, which project proponents estimate could attract about $1 billion in foreign direct investment, will explore the development of utility-scale solar power plants, floating solar facilities, battery energy storage systems (BESS), carbon credit projects and related renewable energy infrastructure.

“It is timely since Occidental Mindoro has been experiencing power outages in the past months. We are experiencing four hours of brownouts every day,” Gadiano said in an interview.

He said the province and the rest of the MIMAROPA region are not connected to the country’s main power grid and continue to rely largely on diesel-fired generation for electricity supply.

“The whole MIMAROPA region is not connected to the grid, and we are just counting on the diesel-powered generators,” he said.

Mindoro has been identified as the pilot area for the renewable energy initiative, with plans to expand to other provinces in MIMAROPA as well as Tawi-Tawi, Basilan and Sulu.

“We have identified potential sites already. Mindoro will serve as the pilot province, but will expand to all provinces of MIMAROPA, Tawi-Tawi, Basilan and Sulu, funded by Wizzard Energy through its Korean subsidiary, CS-Tech Co., Ltd.,” Gadiano said.

The governor said the local government would also pursue a power purchase agreement with the local electric cooperative for an initial 10-MW solar power facility that would help address the province’s electricity shortages.

Under the MoU, the participating local governments and private sector partners will work together to study and develop renewable energy projects across participating provinces and municipalities.

If realised, the initiative could support the Philippines’ efforts to improve energy security in remote and off-grid areas while reducing dependence on imported diesel fuel through the deployment of solar power, energy storage and other renewable energy technologies.

Bago Negros Energy breaks ground on 150-MW wind project in Negros Occidental

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MW Mosqueda
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Bago Negros Energy

Bago Negros Energy Corp. has broken ground on a 150-megawatt wind power project in Bago City, Negros Occidental, the first wind development of its kind in the Negros Island Region.

The project, with an initial cost of 9.78 billion pesos, will involve the construction and operation of 23 wind turbine generators across seven barangays. It is expected to strengthen power supply in the Visayas grid and support the Philippines’ renewable energy roadmap.

“This is our first project in the Philippines. Right now, we have put our focus on the Philippine market. This is going to be our first, that’s why we would like it to be a hundred percent success,” BNEC Vice President Passakorn Panyaratanakorn said during the groundbreaking ceremony in Barangay Calumangan.

BNEC is backed by Thailand-based renewable energy developer Sermsang Power Corp. Public Co. Ltd., which lists the Bago City Wind Power Project among its developments.

Bago City Mayor Marina Javellana-Yao said the project showed what can be achieved when government, the private sector and communities work together for sustainable development.

“We are not only witnessing the start of a structure, we are witnessing the beginning of a legacy,” Javellana-Yao said.

Department of Energy Renewable Energy Management Bureau Assistant Director Ruby de Guzman said the project would help position Bago City as an emerging renewable energy hub in Negros Occidental.

“You have diverse renewable energy resources. With this 150-MW wind power project, we are seeing that Bago City is now becoming the rising renewable energy hub in Negros Occidental,” De Guzman said.

The construction of the wind project is expected to take about a year.

Based on the project’s executive summary, the Department of Energy awarded the Bago City Wind Power Project a service contract area covering 5,265 hectares. The area will accommodate the wind power plant’s core facilities, substation, access roads, support facilities and other supplementary areas.

The project area spans Sampinit, Taloc, Calumangan, Busay, Lag-asan, Balingasag and Napoles.

Barangay Napoles will host 10 wind turbine generators and a substation, while Busay will have seven turbines, Calumangan three, and Taloc, Sampinit and Lag-asan one each.

25-kW Solar Project Powers Water, Homes on Off-Grid Matabas Island

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MW Mosqueda
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REPower Matabas
Photo by Zbynek Burival on Unsplash.

A 25-kilowatt community solar power project integrated with a solar-powered water desalination system has been commissioned on Matabas Island in Negros Occidental, bringing electricity and clean water services to about 150 households in the off-grid community.

The initiative, known as the REPower Matabas Project, was launched to mark World Oceans Day and is being implemented by the Negrosanon Initiative for Climate and the Environment (NICE) with support from the Honnold Foundation and other partners.

The project consists of a 12-kilowatt hybrid solar system powering a water desalination facility, an eight-kilowatt hybrid rooftop solar installation for the island school, and a five-kilowatt solar system for the local church. It also includes 70 solar-powered streetlights, community charging stations and a battery energy storage system.

Former Negros Occidental governor Rafael Coscolluela, now the province’s consultant for environment and energy, said the initiative forms part of the province’s broader renewable energy transition program.

“We hope Matabas can become a model for community-based renewable energy projects that can be replicated in other remote areas,” he said in a statement.

Matabas, part of Barangay Molocaboc in Sagay City, is accessible only by a 45- to 50-minute boat ride from Vito Wharf. NICE Secretary-General Joshua Villalobos said the island is not included in the electrification plans of the Northern Negros Electric Cooperative because of its off-grid location.

He said the project was designed not only to deliver clean energy but also to address development challenges identified by the community, including access to safe drinking water, lower energy costs and improved public services.

Second District Representative Alfredo Marañon III said the project had fulfilled the community’s long-standing aspiration for reliable water and electricity supplies.

The initiative also includes training for members of the Matabas Active Women Association on alternative livelihoods and disaster risk reduction, highlighting the role of women-led, community-centered clean energy solutions for off-grid island communities.

ADB, Philippines build renewable energy project pipeline

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MW Mosqueda
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Photo: ADB

The Asian Development Bank (ADB) is working with the Philippine government to develop a pipeline of energy projects aimed at accelerating renewable energy deployment, improving energy efficiency and cutting diesel use in off-grid communities, BusinessWorld reported.

Citing ADB Country Director for the Philippines Andrew Jeffries, the report said the multilateral lender is identifying priority projects for future financing through a combination of sovereign and private sector support.

“ADB is continuing to support the Philippines in scaling up renewable energy by providing sovereign and non-sovereign financing, in addition to transaction advisory services,” Jeffries told BusinessWorld, adding that the bank is working with the government to identify projects for future funding.

According to the report, the proposed pipeline includes support for a government energy management plan, a geothermal resource derisking facility to encourage greenfield development, and initiatives to reduce diesel consumption in off-grid areas.

The projects are being developed as the Philippines seeks to increase the share of renewable energy in its power generation mix to 35% by 2030 from around 26% currently.

BusinessWorld reported that ADB is also supporting the government’s energy transition through policy-based lending designed to strengthen regulations, diversify energy sources and expand access to electricity.

Jeffries said the Philippines’ largely privatized power sector and established regulatory framework have helped attract private investment, citing strong participation in the government’s Green Energy Auction (GEA) programme.

The Department of Energy awarded contracts to 123 winning bidders under the fourth round of the GEA last year and plans to offer at least 25 gigawatts of additional renewable energy capacity through annual competitive auctions beginning this year.

“The successful implementation of a green energy auction program is evidence that the country is able to attract much needed investment in clean energy,” Jeffries told BusinessWorld.

The report came as ADB officials called for greater regional energy cooperation. ADB President Masato Kanda said the lender’s newly launched Pan-Asia Power Grid Initiative would help strengthen cross-border electricity networks and mobilise private capital to support the region’s energy transition.

DOE checks energy facilities after 7.8 quake in Sarangani

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MW Mosqueda
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The Philippines’ Department of Energy said it has begun assessing energy facilities in Sarangani and nearby areas after a magnitude 7.8 earthquake struck the area.

The DOE, through its Task Force on Energy Resiliency, said it had activated coordination with electric cooperatives, distribution utilities and oil industry stakeholders following President Ferdinand Marcos Jr.’s directive to immediately assess critical infrastructure after major disasters.

The department said it was consolidating reports on the condition of power lines, substations, distribution facilities, fuel depots, retail stations and other energy infrastructure to determine whether any facilities were affected.

Continuous monitoring is being conducted to ensure the uninterrupted supply of electricity and petroleum products in affected communities, the DOE said.

The agency added that it remains in close coordination with local energy stakeholders to facilitate rapid response measures should damage to energy infrastructure be confirmed.

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