By Alberto Dalusung III

Editor’s Note: Bert Dalusung is the Energy Transition Advisor of ICSC. He has over 30 years of experience in the energy sector, with focus on renewable energy development, national energy planning, and policy formulation. Dalusung was featured in the Philippine Daily Inquirer article “PH aspires to be next green power paradise,” published on January 5, 2025, which highlighted the latest findings of the Bloomberg New Energy Finance (BNEF) Climatescope Report.

The Philippines has made significant advancements in renewable energy (RE) development over the last three years. The 2024  Climatescope Report by Bloomberg New Energy Finance (BNEF) ranks the country as the second most attractive emerging market for green energy investments, a notable rise from 20th place in 2021. 

This achievement highlights not only the country’s abundance of natural resources, but also its strategic position for RE leadership in emerging markets and potential to significantly influence the global energy transition, becoming a hub for investment and collaboration within the ASEAN region and beyond. 

Through the advancement and deployment of RE, the Philippines is demonstrating a model response that climate-vulnerable countries can adapt in facing climate change, while simultaneously fostering economic opportunities, enhancing energy security, achieving energy independence, and creating employment.

The Department of Energy (DOE) attributes this success to comprehensive RE policies, including auctions, net metering schemes, tax incentives, and a clean energy target of 35 percent RE in the country’s power mix by 2030. The 2023-2050 Philippine Energy Plan (PEP) reflects the DOE’s commitment to enabling a more sustainable and self-reliant energy future for the Philippines––emphasizing energy diversification and incorporating climate considerations in the clean energy scenarios, while focusing on indigenous sources such as solar, hydro, and offshore wind. 

However, while policies and programs are in place to support the development and deployment of RE in the Philippines, there is still much to be done, especially if we are to meet the country’s targets of a 35% RE share in power generation by 2030, 50% by 2040, and over 50% by 2050. These goals necessitate modernizing the energy grid to integrate new RE technologies, ensuring grid stability, upgrade infrastructure, and implement smart grid technologies to accommodate the variability of renewable energy sources.

Moreover, transitioning from our current, centralized grid and baseload-reliant energy system into a more flexible and distributed energy system is essential. The majority of our baseload power––approximately 7,000 MW––is currently concentrated in Batangas. A strong typhoon in this area could incapacitate the power plants, resulting in widespread blackouts and costing the country billions in economic losses.

In the last year, large-scale power outages have affected the livelihoods and survival of far-flung communities at the forefront of climate change. These instances underscore the need for a flexible, distributed power generation model that utilizes indigenous and readily available RE sources to enhance the energy sector’s reliability and resilience. Additionally, collaboration between the national and local governments and financial institutions is necessary to accelerate RE project implementation, de-risk projects, and develop innovative financing solutions, enabling small and medium RE developers to access climate finance.

Collaborative partnerships among national government agencies, local government units, non-state actors, and the private sector are vital for cultivating the transition towards renewable energy sources. Local-level interventions, such as ICSC’s work in partnership with local governments to power public facilities in the municipalities of Guiuan, Eastern Samar and Paranas, Samar with solar energy, demonstrate how national policies can be effectively implemented at the grassroots level, where the energy transition will be made more sustainable and inclusive. 

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