The Department of Energy (DOE) is optimistic that the development of renewable energy (RE) projects in the country will continue to thrive, as investors find the government’s energy policies enticing.
The DOE in a Dec. 9, 2024 statement said proof of such expectations is BloombergNEF’s 2024 Climatescope Report, naming the Philippines as the second most attractive emerging market for RE investments.
The agency said the Philippines currently has comprehensive renewable energy policies, including auctions, net metering schemes, tax incentives, and an aggressive clean energy target of 35 percent RE in the power mix by 2030, which will be raised further to 50 percent by 2050.
Based on DOE data as of end-November 2024, the total share of RE installed on-grid capacity of hydro, geothermal, wind, biomass and solar technologies stood at 9,361 megawatts (MW), equivalent to 31.5 percent of the country’s power supply mix.
Major Middle East Investment
Earlier this month, the DOE signed an agreement with Masdar, an RE developer from the United Arab Emirates (UAE), for the implementation of a development plan for as much as 1,000 MW of projects in the Philippines.
The DOE said the deal eyes the development by Masdar of solar, wind and battery energy storage systems across various regions in the Philippines by 2030.
The capacity of the facility may be scaled up to 10,000 MW within a decade, with an estimated total investment of $15 billion, the DOE said.
Under the agreement, the DOE will assist Masdar in conducting pre-development activities, technical studies, securing the necessary rights, gathering project information and obtaining all required regulatory approvals and permits. The energy agency will also facilitate the company’s applications for investment incentives and tax exemptions.
Meanwhile, Masdar will take the lead in project development, overseeing commercial, technical, financial and environmental workstreams.
The DOE said Masdar will develop the project at no cost to the government.
“Under President Marcos Jr.’s leadership, the Philippines is integrating RE into its energy mix on an unprecedented scale, ensuring energy security while fostering sustainable economic growth and environmental stewardship. This collaboration sets a new benchmark for energy transition in the region,” DOE Secretary Raphael Lotilla said in a Jan. 16, 2025 statement.
“Beyond enhancing energy security and reducing reliance on fossil fuels, this collaboration will deliver significant economic benefits to the country, creating opportunities for job generation, drive technology transfer and empowering the local workforce with advanced skills in clean energy development. Together, we are positioning the Philippines as a regional leader in sustainable energy,” Lotilla added.
Upcoming RE Auction Rounds
The DOE is scheduled to conduct the third, fourth and fifth rounds of the Green Energy Auction (GEA) this year.
Under the current setup of GEA, interested RE producers compete for incentivized fixed power rates by offering prices that are lower than or equal to reserve prices set by the Energy Regulatory Commission (ERC).
The DOE expects to bid out by February under GEA-3 a total installation target of 4,650 MW.
Capacities to be auctioned off are 300 MW for impounding hydro projects throughout the country that must be operational between 2028 to 2030 and another 100 MW worth of geothermal projects in the entire country that must be running between this year and 2027.
The remaining 4,250 MW capacity under GEA-3 are all from pumped-storage hydro (PSH) broken down to 2,000 MW in Luzon that must run from 2028 to 2030; another 2,000 MW also in Luzon that must operate by 2031 to 2032; and the remaining 250 MW in Mindanao which should be completed by 2031 to 2035.
For GEA-4, this RE auction round will involve more than 8,200 MW worth of RE projects with energy storage system (ESS) components.
The DOE earlier said apart from ESS projects, GEA-4 will involve projects utilizing liquefied natural gas, flywheel and pumped storage hydro.
The DOE said GEA-5 will be dedicated to offshore wind (OSW) projects and will likely happen by the third quarter of the year.
The agency said GEA-5 is expected to catalyze the development of OSW projects, solidifying the Philippines’ position as an RE leader in the region as it will secure market access for developers to ensure long-term demand for their generation capacities and serve as a timeline guide for other stakeholders.

Household Contributions
Amid all these big pushes for RE by private organizations, households are also now capable of harnessing electricity from the sun, and the ERC is keen on empowering them further.
The regulatory body sought public feedback on a draft resolution amending current rules that govern the country’s net-metering program.
Under the net-metering program, solar power facility owners with up to 100 kilowatts peak (kWp) capacity can export their excess electricity to the grid in exchange for electricity bill credits that can be in the form of rebates.
The ERC said that among the key amendments being pushed is the proposal to allow the banking of net-metering credits, enabling their transfer in cases of property ownership changes.
The regulatory body said in such instances, the credits accrued to the original property owner shall be transferred to the new owner, provided they comply with existing rules and execute necessary documents which may include but not be limited to a new net-metering agreement with concerned distribution utilities (DUs).
The ERC is also proposing to mandate DUs to prominently display on their websites an itemized breakdown of their generation charges, along with their hosting capacities that must be delineated on both a substation and per-feeder basis.
The ERC also wants to make the installation of Renewable Energy Certificate meters voluntary but to come up with a proposed formula to estimate the generation of a net-metering facility.
The regulatory body said such changes will enhance transparency, accountability and the ease of implementation of the program.
Based on latest data from the ERC, as of end-November 2024, there are 14,983 qualified end-users for the net-metering program for projects with a total rated capacity of 134,583.55 kWp.