PH’s Clean Energy Transition to Require $500B in Investments — Lotilla

The Philippines will need an estimated $500 billion in investments to achieve its ambitious clean energy transition goals, according to Energy Secretary Raphael Lotilla. Speaking at the Economic Journalists Association of the Philippines (EJAP)-AboitizPower Renewable Energy Forum in Makati, Lotilla emphasized the significant capital required to shift towards a more sustainable energy mix.

The government aims to increase the share of renewable energy (RE) in the country’s power mix to 35% by 2030, and further boost it to 50% by 2050. Achieving these targets will require substantial funding from both public and private sectors, Lotilla said. “Our energy sector is not government-owned… so it is not going to be cheap. It will require up to $500 billion of investments,” he added, noting that the funds will help retrofit or phase out fossil fuel plants.

As of the end of 2023, renewable energy sources—such as hydro, geothermal, wind, biomass, and solar—accounted for 29.7% of the country’s energy mix. However, coal remains dominant, with a 43.9% share.

The Philippines was also chosen by the Coalition for Emerging Market Infrastructure Investment (CEMII) as a focus market for infrastructure investments across the Indo-Pacific Economic Framework (IPEF). The CEMII manages a $25 billion fund for energy investments in IPEF economies, which could significantly aid the country’s clean energy transition.

Accelerating the transition to renewable energy is critical in reducing carbon emissions and limiting global temperature rise to 1.5 degrees Celsius.