Philippines Can Tap PHP 44B Solar Export Market

The Philippines has the potential to unlock a PHP 44.3-billion (USD 788.4 million) export market for solar photovoltaic (PV) modules by addressing non-tariff trade barriers, according to the Philippine Exporters Confederation, Inc.

PV modules, which convert sunlight into electrical energy, are critical to the global transition to renewable energy.

Major export opportunities exist in key markets, including the United States (USD 189.4 million), China (USD 171.6 million), the Netherlands (USD 64.7 million), Vietnam (USD 46.4 million), and Germany (USD 43 million).

The International Trade Centre (ITC) emphasized that resolving trade hurdles would not only increase export potential but also attract foreign investment into the country’s renewable energy value chain.

The ITC highlighted the need to develop market intelligence tools that provide Philippine exporters with insights into potential markets and transparency regarding foreign trade requirements.

By addressing these information gaps, businesses can identify opportunities and streamline compliance with international standards.

“Helping countries establish national regulatory standards on these goods through the adoption of international standards can improve the level of quality and safety of RE products and technologies, facilitating local deployment as well as exports,” the ITC stated.

Engaging with manufacturers and traders of solar components is also necessary to understand what support and capacity-building initiatives are required to meet international trade and technical standards.

Compliance Is Key to Market Access

The ITC stressed that exporters’ ability to meet non-tariff requirements in target markets will determine their market access.

Most major markets already offer duty-free entry for solar PV modules, but businesses must build compliance capacity to benefit from this advantage.

“To tap into this potential and boost market share, they need to invest in building a strong capacity to comply with both technical and non-technical regulations,” the ITC added.

Improving compliance infrastructure will also ensure that Philippine-made solar PV modules remain competitive in global markets.

Investing in Renewable Energy Supply Chains

To strengthen its position in the renewable energy market, the Philippines should invest in regional value chains and enhance quality infrastructure, according to the ITC.

This includes the development of domestic capabilities for manufacturing solar components, improving workforce skills, and promoting foreign direct investments in renewable energy supply chains.

Trade agreements can also be leveraged to encourage foreign investment and ease the entry of skilled professionals in the renewable energy sector.

“When used effectively, tariff and non-tariff trade tools can encourage easy access to RE goods (imports) as well as access to promising markets (exports). To the extent possible, developing countries should try to negotiate these requirements effectively under various trade agreements,” the ITC noted.