From solar farms in Luzon to wind projects off Mindoro’s coast, the Philippines raced to meet surging power demands while battling climate threats to revolutionize the energy sector in 2024. While our Asian neighbors debated green energy plans, Philippine power companies poured $3 billion into solar and wind projects, driving energy costs down 15% in pilot regions.
Characterized by a concentrated effort towards sustainability, the use of renewable energy, and enhanced grid resilience, the country managed to turn power challenges into opportunities, reshaping not just how electricity is generated, but who profits from it.
Growth powered by renewables
The energy sector grew 7% this year, despite global challenges. While imported fuel costs still affect power prices, renewable projects have started bringing costs down, with investment in renewable projects now outpacing coal power funding, showing a clear market shift. Foreign investors are taking notice, particularly in solar and wind projects.
Solar energy was responsible for 51.5% of new energy capacity in 2024 (approximately 27,162 MW), while wind projects added another 16,650 MW. The Terra Solar Project, set to become one of the world’s largest solar farms at 3,500 MW, puts the Philippines on the global energy map.
Solar Week Philippines 2024 showcased the sector’s rapid growth:
- Maqo Power claimed Emerging Solar Company of the Year
- Solar Home Supplies & Services OPC won Solar Company of the Year for commercial development
- Buskowitz Energy Inc. took home two awards: Best Solar Project and Solar Company of the Year for rooftop installations
The Renewable Energy Market
The biggest energy story of 2024 came on December 26, when the Renewable Energy Market (REM) commenced full commercial operations. The country’s first dedicated marketplace for renewable energy, it is more than just a trading platform, it is designed to speed up the country’s shift to clean power by solving a long-standing problem: connecting renewable energy producers directly with buyers.
With the REM, Philippine businesses can easily buy certified clean energy, while power producers get better prices for their renewable output. More importantly, it gives investors clear signals about where to put their money in the Philippine energy sector.
Infrastructure and advances
The growth of renewable energy was the stuff of headlines, but most of the industry’s real breakthroughs in 2024 are from three infrastructure projects that transformed how power moves across the archipelago, solving the biggest challenges facing Philippine energy: distribution, storage, and bureaucracy.
Power connections. The ₱52 billion Mindanao-Visayas Interconnection Project, a 450-kilometer undersea cable system, is the Philippines’ first unified power highway. Businesses in Mindanao can now tap Visayas’ solar farms during peak hours, while Visayan industries can access Mindanao’s hydropower reserves. Early results show a 23% improvement in power stability in connected regions and up to 30% cost savings during peak demand periods.
Smart power storage. A network of advanced battery systems solves one of the main challenges of renewable energy– stability. The flagship project in Bataan,a 40MWh battery facility, demonstrates just how unstable renewable power can be transformed into reliable baseload energy. By trading energy between peak and off-peak hours it also creates new revenue streams for power companies. Three more facilities are under construction, with combined storage capacity of 150MWh.
Faster project approvals. Through the Energy Virtual One-Stop Shop System, what once required visits to 12 different agencies now happens through a single digital platform, reducing the average wait from 1,340 days to just 270, allowing for faster deployment for faster returns on investments.
The Road Ahead
The Philippines aims for 35% renewable energy by 2030, rising to 50% by 2040, targets that are driving interest and real investment both locally and globally.
For investors and business leaders, the message is clear: the Philippine energy sector offers immediate opportunities. Those who understand these changes—and move quickly—will find themselves well-positioned in this energized market.
