Philippines ushers ASEAN in renewable energy investments

$27.7 billion: How the Philippines leads Asean in investments, green power push

Investments boom: 2024 saw a 28% jump in approved projects, as per DTI data

Jay Hilotin, Senior Assistant Editor
Gulf News (Saudi Arabia)
30 January 2025

Manila: The year 2024 broke records for investments, with approved projects hitting Php1.62 trillion ($27.7 billion), the Philippine Department of Trade and Industry (DTI) has confirmed.

Free energy from the sun: The Philippines's biggest winners in 2024 in wooing fresh capital were the energy and manufacturing sectors, as well as special economic zones. Renewable power led by solar-wind-batteries (SWB) secured Php1.38 trillion ($23.6 billion) in fresh inflows — a 40 per cent jump from 2023.Bloomberg

The bumper inflows exceeded the Php1.5 trillion initial target for the past year.

The Asean nation not only overshot its original aim: it was up 28 per cent, outpacing 2023’s Php1.26 trillion ($21.58 billion), outperforming neighbouring countries like Thailand and Malaysia in this metric.

The biggest winners in wooing fresh capital: renewable energy (RE) and manufacturing, among others, as per the Presidential Communications Office.

Green energy leads 

• The energy sector led the charge, securing Php1.38 trillion ($23.6 billion) — a massive 40 per cent jump from last year.
• Other booming sectors: air and water transport, mass housing, manufacturing, water supply, waste management, and real estate.

Economic zones

The Philippines, once dubbed as the "Silicon Valley" of South-east Asia, has lost its sheen due to power intermittency and high rates.

Now, it's plotting a comback, as the Philippine Economic Zone Authority (PEZA) also shattered expectations, raking in Php214.17 billion ($3.67 billion), surpassing its Php200 billion ($3.5 billion) goal for 2024.

Investment boom

Though officials didn’t directly link the surge to President Ferdinand Marcos Jr.’ global investment push, trade leaders credit his overseas trips for securing major deals. 

President His Highness Sheikh Mohamed bin Zayed Al Nahyan with Ferdinand Marcos Jr, President of the Republic of the Philippines, at Qasr Al Shati in Abu Dhabi in November 2024.

File photo | WAM

Australia: Marcos locked in $1.53 billion (Php86 billion) across renewable energy, clean tech, IT-BPM, and healthcare, plus an expansion of Victoria International Container Terminal (VICT).

Germany & Czech Republic: Fresh investments are rolling in, with PEZA reporting nearly Php75 billion — about 43 per cent of its annual target — linked directly to the international trade missions.

Vietnam: VinGroup pledged investments in EV battery production, fueling the government’s transport modernisation.

Japan: A sweet deal between local Auro Chocolate and retail giant Mitsukoshi will benefit 1,000 Filipino families, blending Davao’s cacao with Japanese flavours like matcha and miso.

What’s next?

Manila is doubling down on investment-friendly policies in 2025, ensuring the Philippines remains a top destination for business, innovation, and job creation, said Trade Secretary Cristina Roque.

“We will continue to refine and implement forward-looking policies that attract investments in these key industries, ensuring that the Philippines remains a prime destination for innovation and growth,” Roque was quoted as saying by the Presidential Communications Office.

With this momentum, the Philippines isn’t just catching up — it’s leading the pack in the Asean.

Challenges

The country is tackling a key challenge: energy security and high cost of power.

Policy makers are leading the drive with a mix of renewable energy (RE) expansion and mega gas-to-energy projects, potentially dislodging coal.

In 2024, the Philippines ramped up RE capacity: more than 4,000 megawatts (MW) of power projects came online, as per the Department of Energy (DOE).

In June, the agency approved the construction of 16 offshore wind farms, with an estimated potential capacity of 7,668 MW. 

In September, Danish firm Copenhagen Offshore Partners announced a $3-billion investment for the 1-gigawatt (GW) San Miguel Bay offshore wind power project in Camarines Sur, about 400km south-east of Manila.

Juice from this wind project will start energizing the power grid from 2028.

In November, the $3.4-billion integrated solar-battery project, claimed to be the “biggest-of-its-type-in-the-world” in a 3,500-hectare (35 sq km) land in Nueva Ecija and Bulacan, broke ground north of the capital, combining solar and batteries, able to power the equivalent of 2 million local homes.

The Philippines also announced 20 dams for hydro-electric power generation.

Earlier this month (January 2025), the Philippines and UAE sealed a $15-billion landmark solar-wind-batteries deal aimed to bolster the Asean nation’s renewable energy credentials.

Policy mandate

Policy has been tweaked, too: electricity suppliers are now mandated to increase their RE sourcing by at least 2.52 per cent annually starting in 2023, up from the previous 1 per cennt annual increase in 2020. 

Filipino business tycoons are turning into battery barons, ramping up megawatt-scale “power banks” – including ones on floating platforms, with container-size battery energy storage systems (BESS).

A key advantage: they can be quickly deployed where needed. More than 60 sites across the archipelago had been completed or in the roll-out stage.  

Global recognition  

While the Philippines still has one of the highest power rates in the region, the push for REs is hoped to bring rates down.

With companies like Aboitiz Power, ACEN, and Meralco scaling up solar farms and offshore wind, the Philippines landed second in the 2024 Climatescope Report by BloombergNEF, reflecting investor confidence in greening drive.

Will these moves push some — if not all — of the 60 coal-fired plants (with generating capacity of 12 GW) to retire earlier than planned?

It's early days.

The ramp in RE underscores Manila’s efforts to creating a greener, end-user and investor-friendly (and, hopefully, cheaper!) power eco-system.