Philippines second most attractive market for RE investment

MANILA, Philippines — The Philippines has climbed two spots to become the second most attractive emerging market for renewable energy (RE) investments globally.

According to the BloombergNEF Climatescope 2024, the Philippines earned a power score of 2.65, closely trailing India’s 2.73 and besting other 103 developing countries.

This marks an improvement from last year’s fourth-place ranking and an impressive leap from 20th place in 2021.

Other emerging markets in the top 10 include China, Kenya, Romania, Brazil, Chile, Nigeria, Namibia and Guatemala.

The Philippines’ power score is also better than the regional average of 1.94 in Asia-Pacific, placing the country in the second spot regionally.

The country’s rise in the rankings is credited to its effective implementation of energy policies, including feed-in tariffs, net metering, import and value-added tax incentives, priority grid access and RE certificates.

BloombergNEF highlighted the Philippines’ ambitious target of scaling up the share of renewables in its energy mix to 35 percent by 2030 and 50 percent by 2050 from the current 22 percent.

The report likewise cited the Department of Energy (DOE)’s conduct of green energy auction rounds to trigger the expansion of the country’s renewable capacity.

“Investment in clean energy in the Philippines was around $1,981.08 million in 2023, an increase of 87.14 percent from 2022 ($1,058.63 million),” BloombergNEF noted.

In a statement yesterday, the DOE welcomed the results of this year’s report, saying this reflects the growing confidence of the global community in the country’s shift to clean power.

“As the only emerging market in the Asia-Pacific region with all these mechanisms in place, we are paving the way for a more sustainable energy future, not only for our nation but as a model for the region,” it said.

With peak demand seen growing by around 5.3 percent annually until 2028, the agency recognized that the country’s energy transition journey “is far from over.”

The Philippines, the DOE said, should further accelerate the development of RE technologies to meet the energy needs of the expanding economy.

“Significantly, while most of the (RE) investment is domestic, we look forward to realizing the potential of increased foreign participation through recent reforms that allow 100 percent foreign equity in (RE) projects,” it said.

The DOE also reaffirmed its commitment to unlocking the potential of the country’s natural resources to bolster inclusive economic growth and a more sustainable future for all Filipinos.

“This recognition inspires the DOE to further intensify its efforts in achieving our renewable energy goals, ensuring that our nation remains a global beacon of progress in the energy transition,” it added.