Transitioning Toward a Sustainable Future: Clean Energy Innovations Amid the Philippines’ Dependence on Oil and Coal
Abstract
This study examines the Philippines’ clean energy transition in the context of its long-standing dependence on imported oil and coal. Using a mixed-methods approach that combines policy review, stakeholder analysis, and energy system scenario modeling, we assess recent trends (2020–2024) in renewable energy (RE) deployment, costs, and emissions, and identify key barriers and opportunities. We find that the Philippines has achieved record RE capacity additions (e.g. ~794 MW in 2024) and increased the RE share of installed capacity to ~32% (June 2025), yet coal remains dominant (62–64% of generation). Levelized cost analyses indicate new solar projects (LCOE ~$35–72/MWh) are now cheaper than new coal or gas (~$87–117/MWh). Despite ambitious targets (35% RE by 2030, 50% by 2040), policy and grid integration challenges persist. We discuss regulatory hurdles (e.g., permitting, offtake, transmission), technical issues (intermittency, storage needs), and compare the Philippine experience with peers such as Indonesia and Vietnam. We conclude with recommendations to strengthen institutional capacity, streamline regulations, expand innovative programs (e.g. auctions with storage mandates), and foster private-sector and local innovation to sustain the transition.
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Copyright (c) 2025 Analyn I. Diola, Carlos G. Castillo, John Renz Alcaraz
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