A Quick Look at Renewable Energy in the Philippines

Renewable energy is one of the major initiatives of the Philippine government to hurdle significant challenges currently pressing the country, primarily, carbon emission and energy supply. This has been pushed further to the limelight during the early days of the ensuing Middle East war involving the United States, Israel, Iran, and other Arab and oil-producing nations, which caused disruption of oil and coal shipment bound for various countries worldwide, the Philippines included. Amid current efforts and international push to shift from fossil fuel to green energy, where is the Philippines now in the adoption of renewable energy? Sources show that the country marches towards clinching its targets, but much still awaits to be done before attaining a sufficient, stable renewable-energy system nationwide.

To start off, renewable energy refers to energy with natural origin and replenishes in no time. Common sources of renewable energy include sunlight which produces solar energy, water movement which brings hydropower, and wind blow which begets wind energy.

A substantial fraction of the Philippine energy circulation comprises renewable energy emanating from different sources. According to the Department of Energy (DOE), the Philippines scaled up renewable-energy share in the national energy mix to 25.4% as of 31 December 2025. This constitutes a 3.2% leap from year 2024’s gain. This boost came from private firms, which own all power plants that are put up in the country starting from 2001.

Some major renewable-energy firms in the Philippines are Citicore Renewable Energy Corporation, Energy Development Corporation, ACEN Corporation, AP Renewables, Inc., and First Gen Corporation.

According to DOE undersecretary Rowena Cristina Guevara, among the three major regions in the country, Visayas casts the biggest share in renewable-energy capacity of the country, sourced mostly from solar energy. Mindanao follows, its contribution derived primarily from hydro energy, then Luzon, whose renewable-energy share is mainly solar.

Undersecretary Rowena Cristina Guevara, Department of Energy

The 25.4% share of renewable energy in the Philippine energy circulation may sound a sturdy achievement in the country’s pursuit of massive energy shift, resembling more than a quarter of the entire national energy core. The rate, however, rather lags behind with respect to nationally-determined green-energy targets.

The government aims at 35% renewable energy in the energy mix by 2030. That said, the state and the private sector still have sizable work to do, with 9.6% green-energy share yet to be fulfilled in less than a five-year span. This connotes the need for intensive and extensive cooperation among the national government, local government units, private energy firms, and the Filipino community in thrusting renewable-energy expansion throughout the country towards filling in this remaining gap.

By 2040, renewable energy in the energy mix is intended to magnify to 50%.

Guevara narrated that, generally, it only takes a year to erect renewable-energy plants in the Philippines, especially solar facilities. In reality, however, the installation process lasts for at least three to four years. The bottleneck often resides in the licensing phase, where companies engage with, and obtain the consent of, the community in whose area the renewable-energy facilities will be established and operated. This stage often takes two to three years.

The DOE undersecretary said that the government is committed to fostering a thriving, reliable, and profitable renewable-energy industry in the country. Proofs of this are the policies, grants, and incentives the state has promulgated in favor of renewable-energy companies in the Philippines. These benefits include a seven-year income tax holiday, 10-year tax-free importation, and zero value-added tax for production.

The Department of Education (DepEd), for its part, is considering the installation of solar panels on the roofs of public schools countrywide. In a press conference in April 2026, DepEd secretary Juan Edgardo “Sonny” Angara expressed the education department’s plans to solarize public schools to cut power expenses, especially amid the energy problems faced by the country brought about by the ongoing Middle East war. This project may be incorporated in the 2027 national budget for proper funding and full implementation.

The Philippines has made a headway in establishing a renewable-energy system for herself. 25.4% of the energy mix is already renewable. Pertinent policies are in place. Great incentives are up for grabs. These accomplishments—complemented by strong public support and accelerated public-private efforts—must usher the country to achieving its renewable-energy targets set for 2030, 2040, and beyond.