PH Climbs in Global Energy Index, Lags in Readiness

The Philippines surged nearly 30 places in the World Economic Forum’s 2025 Energy Transition Index, ranking 76th out of 118 countries, a leap from its 105th position last year.

The improved standing reflects progress in system performance, particularly in energy equity and sustainability, but the country’s poor readiness score underscores significant infrastructure and regulatory weaknesses.

The annual index, developed in partnership with Accenture and released in June, evaluates countries based on energy system performance and transition readiness — both crucial for long-term energy security.

According to the WEF report, the Philippines scored 62.1 in system performance but only 39.3 in transition readiness, resulting in a composite ETI score of 53.0.

The score places the country behind several ASEAN neighbors, including Malaysia (47th), Vietnam (49th), Thailand (51st), Singapore (52nd), Indonesia (58th), and Cambodia (73rd).

The WEF noted that the Philippines made notable strides in expanding access to electricity and increasing the share of cleaner energy, driving improvements in equity and sustainability.

However, the report warned that without improved transition readiness — covering infrastructure, regulation, innovation, and investment support — future gains may stall.

“Progress on transition readiness slowed… marking the first time since 2017 that system performance outpaced preparedness,” the WEF said.

This gap could undermine the Philippines’ ability to attract clean energy investments, integrate renewables into the grid, and ensure long-term power resilience.

Juan Paolo Colet, managing director at Chinabank Capital, highlighted grid modernization as a pressing concern for the country’s energy strategy.

“We need to accelerate the expansion and modernization of the grid as part of a national strategy of ensuring sustainable energy security,” Colet told the Manila Bulletin.

Globally, the WEF identified inadequate infrastructure, limited access to financing in developing countries, and rising digitalization and AI-driven energy demands as top barriers to transition.

For the Philippines, aging transmission systems and regulatory bottlenecks continue to constrain private sector investment and project execution.

The government has set ambitious goals of reaching a 35% renewable energy share by 2030 and 50% by 2040.

But to meet these targets, the WEF report stressed that “success will depend not just on accelerating ambition but aligning it with delivery capability.”

This includes policy reforms, grid upgrades, credible project pipelines, and a stronger investment ecosystem to close the readiness gap.