In an advocacy paper written by the European Chamber of Commerce of the Philippines , it is stated that “the Philippine energy sector ranked 4th as the most attractive emerging market for energy investments.” Blessed with the diversity of natural resources, the Philippines is slowly gaining attention for its renewable energy potential under key sectors such as solar, wind, geothermal, and other forms of renewables.

As a matter of fact, the Philippines saw a rise in renewable energy projects to a whopping 26% in 2023, this is according to data released by the Department of Energy (DoE). Furthermore, the renewable energy projects recorded in that year totaled 1,220 projects with a potential of 134,813.79 megawatts. This is a feat that is heaps more than what was projected in 2022 at 965 projects with 80,396.61 megawatts. 

The 2023 Renewable Energy projects were broken down into the following numbers in the said report: 

Data taken from Business World, 2024.

Let’s compare this data with the summary of renewable energy projects that DOE has released as of March 31st 2024:

With these numbers in mind, the DoE has set a targeted increase in the share of renewable energy to 35% by 2023 and 50% by 2024.  Furthermore, the rising number of RE projects are testament to the Philippines’ effort to hit its 2024-2024 clean energy goals. 

Significant Developments, Yet Not Without Its Challenges

—is what the Philippines’ renewable energy industry is. Initiatives such as the Renewable Energy Act of 2008 were passed into law, resulting in significant numbers in renewable energy output. However, amidst these developments, the sector grapples with challenges and barriers to its growth. In what follows, the listed challenges serve as the insignia that distinguishes the industry’s dual nature of progress and impediments.

1. Limited Availability of Power Transmission Infrastructure

The primary challenge that the renewable energy sector faces is the lack of power transmission infrastructures, especially in certain regions where renewable energy sources are abundant. When faced with this hurdle, renewable projects that facilitate the efficient distribution of energy across the country are hindered. Thus, the integration of renewable energy into the national grid is slowed down. 

2. Slow Pace of Processes and Permits

Another critical issue is the slow pace of processes and permits required for renewable energy projects. Delays in regulatory approvals and bureaucratic processes can prolong project timelines This in turn increases the chances of investors getting discouraged from pushing through, thus stalling potential developments in the sector. 

3. Difficulty Securing Affordable Land

Land availability and suitability are crucial factors for the development of solar, wind, and biomass energy projects. High land costs and competing land-use priorities can restrict access to suitable sites, which limits the expansion of renewable energy capacities.

4. Inflationary Pressures

Inflationary pressures also impact the renewable energy sector in the Philippines. Fluctuating prices of materials, equipment, and services necessary for project implementation can escalate overall project costs. These inflationary pressures can strain project budgets and profitability, making it challenging for developers to achieve cost-effective renewable energy solutions.

5. Labor Shortage

Many renewable energy industry-related jobs will be created over the next few decades yet the growing concern that these roles will go unfilled persists. In the international scene, there is an approximation of 1.7 vacancies per energy technician, with an average time to fill of six months. Demand for manpower in the renewable energy sector is on the verge of reaching exponential growth. The sad news is, the labor market is not ready for it. With this in mind, it’s in the best interest of manpower agencies for the renewable energy sector to step up their service contracting game.

Collaboration—the Key That Nurtures Renewable Projects

If there’s one thing that has proven to break through constraints, regardless of how minor or major, collaboration has always proven itself critical. When it comes to renewable projects, the collaboration of the parties involved serves as the bedrock upon which sustainability initiatives thrive. From policymakers to engineers, investors to local communities—the alliance bridges the gaps not only in knowledge, but as well as in implementation, innovation, and overcoming said challenges. 

No single entity can tackle all of these issues alone. An adage encapsulates this thought: “If you want to go far, go together.” Shared vision paves the way for transformative solutions that propel the renewable energy sector far into the future, ensuring a greener and more resilient economy for the Philippines. 

A Greener and Sustainable Future with Renewable Projects 

In envisioning a greener and more sustainable future, companies pushing forth renewable projects need to stand in conviction of this transformative undertaking. Given the current state of the Earth–where a large chunk of greenhouse gases that blanket the planet and trap the sun’s heat is due to the unsustainable energy sources we have—renewable energy projects emerge as a key solution. One that can positively power a greener and safer future. 

Furthermore, the stats don’t lie. To avoid the worst impacts of unsustainable use of energy sources, emissions need to be reduced by half come 2030. In doing so, we need to end our reliance on fossil fuels and invest more in cleaner sources of energy.

That said, here are three major reasons why accelerating the transition to clean energy is the pathway to a healthy, livable planet today and for generations to come.

1. Renewable Energy Sources Are Everywhere

Renewable energy sources are available in all countries, and their fullest potential is yet to be fully unleashed. As long as the sun shines,  wind blows, and water flows, these resources offer abundant energy options for every corner of the globe.

2. Renewable Energy Is Inexhaustible

It is highly unlikely for renewable energy to run out. Renewable energy sources replenish naturally based on their own based on the environmental cycles occurring on the planet.

3. Renewable Energy Promotes Environmental Health

Renewable energy significantly reduces gas emissions, improves air quality, and mitigates climate change impacts. By transitioning away from fossil fuels, we can a healthier environment.