Challenges Ahead for Philippines’ Renewable Energy Goals by 2025, Analysts Say

The Philippines may encounter hurdles in achieving its goal of having renewables surpass coal as the leading energy source by 2025. Analysts point to challenges related to power generation capacity, financing, and land acquisition.

Bienvenido S. Oplas, Jr., President of Minimal Government Thinkers, expressed skepticism about the ability of intermittent wind and solar energy to replace coal generation without risking widespread blackouts. The International Energy Agency (IEA) predicts that globally, renewables will overtake coal as the primary power supply by 2025, contributing over one-third of the world’s electricity.

According to data from the Department of Energy (DoE), the combined power generation from wind and solar in the Philippines was 2,582 gigawatt-hours (GWh) in 2022, accounting for 2.6% of the total generation. In contrast, coal accounted for 57.7% with 66,430 GWh. Analysts emphasize the need for a substantial increase in renewable capacity to support economic growth and prevent frequent blackouts.

Erel B. Narida, President of the Renewable Energy Association of the Philippines, highlights financial challenges, with only a few entities participating in the recent green energy auction (GEA). Land acquisition is identified as a significant obstacle in renewable energy development.

Terry L. Ridon, a public analyst, acknowledges the Philippines’ current economic development stage and limited land for food production. He notes that, unlike developed nations, developing economies like the Philippines are not obliged to make binding commitments to climate and renewable energy goals.

Despite these challenges, the government aims to increase the share of renewables in the country’s power mix from 22% to 35% by 2030 and 50% by 2040. The path to achieving these targets involves addressing critical issues related to capacity, financing, and land acquisition within the renewable energy sector.

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