Philippines races toward renewable energy with $5.6B in clean power projects

The Philippines is accelerating its shift towards renewable energy. Electricity demand grows by 5% to 7% each year, while high power costs and reliance on imported fuel push the country to seek cleaner alternatives. Coal still dominates the energy mix, providing around 60% of the nation’s electricity. Renewables currently contribute about 22% to 24% of power generation. Despite this, the government has certified 13 renewable projects worth ₱344.62 billion ($5.63 billion) as of June 11, 2026.

Two major projects are underway to boost capacity. The MTerra Solar and Battery Energy Storage Project aims to deliver 3,500 MW of solar power and 4,500 MWh of battery storage. Meanwhile, the Pakil Pumped Storage Hydroelectric Project is expected to add 1,400 MW at a cost of roughly $3-4 billion.

Strong funding and recent policy changes support this transition. However, transmission infrastructure struggles to keep pace with new generation, creating delays for renewable developments. The surge in renewable energy investments may eventually reduce electricity prices. With continued growth in demand and policy support, the country is moving towards a more sustainable power supply. New projects and funding signal a major shift in the energy sector.