Foreign investment powers 20 GW surge in Philippine renewables

The Department of Energy (DOE) reported a 20-gigawatt (GW) surge in renewable energy capacity awarded to foreign-owned companies following the Philippines’ decision to lift ownership restrictions in 2022.

Speaking at the 2nd Philippines Future Energy & Grid Summit, DOE Undersecretary Rowena Cristina Guevara said 75 projects have been approved since the policy change, describing the shift as a catalyst for accelerating the country’s clean energy transition.

“In November 2022, we liberalized foreign ownership as a clear signal to the world that the Philippines is open for RE business,” Guevara said.

The reform supports the updated Philippine Energy Plan, which targets a 35 percent renewable share by 2030 and 50 percent by 2040, with scenarios aiming for up to 50 GW of offshore wind capacity.

“These targets are not just numbers,” she said. “They represent a fundamental shift in our national policy and a decisive step towards a sustainable future.”

As of 2025, the DOE has 1,371 active renewable energy service contracts with a potential combined capacity of 145.8 GW across solar, wind, hydro, ocean, geothermal, and biomass technologies.

Guevara noted the country’s renewable energy share fell from 35 percent in 2008 to 22 percent today, calling the decline “a call to action.”

Several programs are expanding access to renewables, including the Net Metering Program with 17,000 qualified end-users across 92 utilities and the Green Energy Option Program (GEOP) for large consumers.

The Renewable Portfolio Standards (RPS) now requires utilities to increase their renewable sourcing by 2.52 percent annually, up from the earlier one percent.

The Green Energy Auction Program (GEAP) has conducted four auctions in 2025 alone, covering pumped storage hydro, geothermal, offshore wind, waste-to-energy, and integrated renewable energy with storage.

According to DOE simulations, the new capacity could reduce average electricity prices in the Wholesale Electricity Spot Market by PHP 1.30 per kilowatt-hour between 2026 and 2029.

Prices may briefly rise due to offshore wind integration but are expected to stabilize thereafter.

Guevara identified four key challenges to scaling up renewables—financing, transmission, intermittency, and bureaucracy.

The DOE is collaborating with the World Bank, International Finance Corporation, and Asian Development Bank to develop blended financing models that reduce borrowing costs without needing government guarantees.

Transmission delays, land pricing, and right-of-way issues continue to slow infrastructure development.

Energy storage, including a 600-megawatt pumped hydro facility projected for 2029, will be essential for stabilizing intermittent renewable sources.

The DOE estimates that the most ambitious scenario for the clean energy transition will require over USD 500 billion (PHP 30 trillion) in investment and could generate two million jobs nationwide.

“Our drive for energy transition is not only to build sustainable energy infrastructure for future generations, but also to reap significant economic benefits,” Guevara said.

“The DOE has set the course, but the destination—a reality that is not just green but truly prosperous, equitable, and secure for every Filipino—is one that we must reach together.”