Philippines needs 20 GW in new renewables to meet clean energy target by 2040 - BusinessWorld Online

Solar panels are seen at a facility in Currimao, Ilocos Norte, May 5, 2026.— PHILIPPINE STAR/RYAN BALDEMOR By Sheldeen Joy Talavera, Reporter THE PHILIPPINES will need an additional 20 gigawatts (GW) of renewable energy (RE) capacity to meet its goal of sourcing half of its power supply from renewables, a gap that upcoming auctions are expected to help address.

“According to our projections, the Philippines will need roughly 20 GW to reach 50% (share) by 2040,” Energy Secretary Sharon S.Garin told reporters in mixed Filipino and English last week.

The Philippines, which currently relies on coal for power generation, is targeting to increase the share of RE in the national power mix to 35% by 2030, and eventually to 50% by 2040.To move towards this goal, Ms.

Garin said the country needs to deliver several rounds of green energy auction (GEA), a government program where renewable energy developers bid for contracts to supply electricity at the lowest possible price. Since the first round of GEA was launched in 2022, the Department of Energy (DoE) has so far completed four auctions, which are expected to deliver more than 20 GW of capacity through 2035.The previous auctions involved solar, onshore wind, biomass, geothermal, hydropower, and energy storage systems.

The DoE is also staging the country’s first competitive auction dedicated solely to offshore wind projects this year.“We projected that we will need to do GEA for another 20 GW,” Ms.

Garin said.In February, the DoE unveiled its 10-year GEA plan that will offer at least 25 GW of additional RE capacity, which is estimated to require P25 trillion worth of investments.

The upcoming auction rounds cover various technologies such as waste-to-energy, onshore wind, floating solar, rooftop solar, and battery energy storage systems, with project deliveries starting as early 2027 and running through 2035.“By preparing a clear, auction-backed pipeline, we...