In an exclusive interview at the Berlin Energy Transition Dialogue (BETD), Energy Secretary Raphael Lotilla said the Marcos administration is reviving international partnerships that had stalled in recent years and working to turn domestic renewable energy goals into bankable projects.
“We’re here to meet with a number of investors that have expressed interest in investing in the Philippines,” Lotilla said. “Also with banking and financial institutions that are similarly open to work with the Philippines in our energy transition.”
“The energy transition is not going to be cheap. It’s not going to be easy. And it’s not going to take place overnight,” he added. “We need the entire world to be our partners.”
The Philippines is positioning itself as an emerging market prepared to absorb capital and scale up renewables. Lotilla acknowledged the country’s low profile in recent international energy initiatives.
“In the previous administration, the Philippines was not part of any just energy transition program,” he said. “That was for political reasons. The European Union did not feel inclined to have any meaningful interaction… not only in the energy sector, but also in other sectors.”
Investment climbs, coal still dominates
In 2022, the government amended the Renewable Energy Law to allow full foreign ownership of clean energy projects. That same year, BloombergNEF recorded a 41-percent increase in clean energy investment compared to 2021.
In its 2023 Climatescope report, BloombergNEF ranked the Philippines fourth among the most attractive emerging markets for renewable energy investment, citing strong policy signals including auctions, feed-in tariffs, net metering, and rising investor interest. In 2024, the Board of Investments approved P1.35 trillion worth of projects - 95 percent of which is allocated to renewables. The surge followed reforms such as increased Renewable Portfolio Standards and new rules prioritizing renewables in the electricity spot market.
“We are pursuing renewable energy primarily because it is indigenous,” Lotilla said. “Our dependence on imported fuel sources will be lessened, and that enhances energy security.”
Despite rising investments, fossil fuels continue to dominate the Philippine energy mix. In 2022, coal accounted for 58 percent of electricity generation, and fossil fuels made up about 75 percent of installed capacity.
The energy sector remains the country’s largest source of greenhouse gas emissions, responsible for 56.9 percent of the national total in 2020. With demand projected to grow by 6.6 percent annually - reaching over 54,000 megawatts by 2040 - the government estimates it will need more than 121 billion US dollars in new energy investments.
Deep structural gaps remain
The Department of Energy targets to raise the share of renewables to 35 percent by 2030 and 50 percent by 2040. It has expanded the Green Energy Auction Program and is exploring emerging technologies like offshore wind and green hydrogen to support that shift.
But deep structural gaps remain. Long-duration energy storage is lacking. Fossil fuel dependence runs deep, and the government’s turn to imported liquefied natural gas has sparked concern it could stall, not support, the country’s shift to clean energy.
On top of these challenges, the Philippines has yet to adopt a national net-zero target - a signal many of its Southeast Asian neighbors have already sent, and one increasingly expected by climate-aligned investors.
In Berlin, the Philippines made a case for why it deserves a seat at the table. Whether it can hold that seat will depend not just on policy ambition, but on delivery.
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