Coal remains the dominant energy source in the Philippines, accounting for 62% of power generation in 2024, despite ongoing efforts to expand renewable energy, the International Energy Agency (IEA) reported.
The IEA projected that coal’s share in the energy mix will slightly decline to 60% by 2027, even as renewable energy is expected to increase to 24% in the same period. The country’s electricity demand continues to rise at over 5% annually, driven by economic growth.
“Overall, growth of coal generation moderates to 4% in 2025-2027, down from 7% in 2018-2024,” the IEA said.
Although the Philippine government imposed a coal moratorium in 2020, previously approved projects were allowed to proceed, delaying the policy’s full impact. The IEA noted that the effect of the moratorium will only become evident in the medium to long term.
Renewable Energy Gains Momentum
Despite coal’s dominance, the renewable energy sector is gaining traction, with solar and wind power leading the transition.
Solar photovoltaic (PV) generation surged by 35% in 2024, with an expected 29% annual increase through 2027. The rapid growth is driven by government incentives and declining solar panel costs. Wind power also expanded by 21% last year and is projected to grow by 24% annually.
However, natural gas will maintain its 14% share of the energy mix from 2025 to 2027, providing stability to the grid as a backup for intermittent renewable sources.
Hydropower generation faced challenges in 2024 due to drought conditions but is expected to recover with a modest 3% annual growth as weather patterns stabilize.
