The Philippines is setting an ambitious course towards energy diversification, aiming to reduce its dependency on imported fossil fuels and enhance its renewable energy capacity for sustained economic growth. The Department of Energy (DOE) has laid out an expansive framework to increase renewable energy’s share in the power mix to over 50% by 2050. This plan incorporates advancements in offshore wind infrastructure and the integration of nuclear power, aiming to establish 1,200 megawatts of nuclear energy by 2032 and scaling to 4,800 megawatts by 2050.
At the 2024 Pilipinas Conference hosted by the Stratbase ADR Institute, DOE Secretary Raphael Lotilla emphasized that energy transformation for the Philippines will be a gradual but steadfast process, critical to achieving the country’s goals of poverty reduction and economic growth. “Right now, the concern for the economy would be energy security to sustain that economic growth and to reduce poverty, which is the number one goal among the sustainable development goals,” Lotilla shared. The Philippines’ heavy reliance on coal, with 80% of it sourced from outside the country, underscores the importance of this shift. Diversifying the energy mix, he said, would strengthen the nation’s energy security and lower its susceptibility to global supply fluctuations.
AboitizPower, a leading energy company in the Philippines, is aligning its strategies with these national goals, according to its Chief Finance Officer, Sandro Aboitiz. The company has outlined plans to add 3,600 megawatts of renewable energy to its portfolio by 2030, which will help meet the rising demand expected from a consistently growing economy. Aboitiz emphasized that the energy transition in the Philippines is far from linear and will require a combination of technologies, including the adoption of rooftop solar to make consumers active contributors to the energy solution.
To foster more inclusive access to renewable energy, Aboitiz suggests the exploration of regulatory reforms, such as improving net metering and incentivizing rooftop solar installations. Currently, around 13 million Philippine households qualify for rooftop solar, but uptake remains low due to existing regulatory and financial barriers. “Policy and regulation has to keep pace and evolve fast enough to enable innovation and experimentation to help us find new solutions,” Aboitiz stated.
Complementing this renewable focus, traditional energy sources will still play a role during the transition period. Lotilla highlighted that coal and natural gas will remain integral to ensuring stability as the country integrates variable sources like solar and wind. The government is considering advanced technologies like carbon capture, utilization, and storage (CCUS) to reduce the environmental footprint of coal and gas plants. Moreover, early decommissioning or repurposing of coal-fired power plants is encouraged where feasible, and co-firing with alternative fuels is emerging as a viable way to lower emissions from existing plants.
Secretary Lotilla and Secretary of Environment and Natural Resources Maria Antonia Yulo Loyzaga also discussed the potential for indigenous energy resources to support the country’s energy ambitions. Loyzaga highlighted that the Philippines holds significant untapped reserves of minerals like copper, gold, and chromite, which are essential for the low-carbon energy technologies of the future, such as solar panels, wind turbines, and energy storage batteries. These critical minerals could position the Philippines as a key contributor in the global renewable energy supply chain.
As renewable projects unfold, the DOE and private energy players like AboitizPower are taking a long-term view, looking beyond the immediate needs of energy supply to anticipate the economic demand of a growing population. “The economy continues to grow at 6% a year, [translating] to about 600-700 megawatts of new baseload demand that is needed just in Luzon alone,” noted Aboitiz. To meet this demand, AboitizPower is evaluating options that include expanding LNG facilities and coal capacities in certain regions, such as the Visayas, where baseload capacity is crucial to support industrial and population growth.
The DOE’s progressive yet balanced strategy for energy transition underscores the importance of an integrated approach. By exploring various energy resources—renewable, nuclear, and traditional—the Philippines is not only future-proofing its energy supply but also paving the way for an inclusive, sustainable economic future. As technologies evolve and policies adapt, the country’s gradual shift towards a cleaner, resilient energy mix positions it as a regional leader in sustainable energy practices.