The Philippines faces increasing challenges in its power sector as electricity demand surpasses supply. The country relies heavily on imported fossil fuels, with coal accounting for about 62% of power generation. Industry leaders see renewable energy, particularly solar power, as a key solution to addressing these issues and ensuring a stable and affordable energy supply.
“The country is heavily reliant on imported fossil fuels, with coal making up a large portion of electricity generation,” said Oliver Tan, CEO of Citicore Renewable Energy Corp. (CREC). “Continuing on this path will only worsen the climate crisis, as seen in the recent typhoons that caused severe flooding and damage.”
Rising energy demand, aging infrastructure, and the unstable nature of traditional power sources further add to the country’s energy concerns. In 2023, peak electricity demand in the Philippines reached 17,331 megawatts, according to data from Statista. Experts believe that renewable energy can help bridge this gap.
“Solar power provides a sustainable and reliable solution to these challenges,” said Elva Wang, head of Trinasolar Asia Pacific. “By harnessing the abundant solar radiation in the Philippines, we can diversify the energy mix, reduce reliance on fossil fuels, and create a more secure and affordable energy future.”
Renewable energy targets and government support
The Philippine government has set ambitious goals for renewable energy. By 2030, it aims for a 35% share of renewables in the power mix, with a further increase to 50% by 2040. These targets are part of the Philippine Development Plan 2023-2028, which outlines steps to shift toward cleaner energy sources.
CREC supports these initiatives with its goal of adding five gigawatts of renewable energy within five years. The company plans to install one gigawatt per year until 2028 to help achieve the government’s renewable energy transition goals.
To encourage investment, the Department of Energy (DOE) has introduced various policies, including tax holidays, zero tariffs, and a streamlined approval process for renewable energy projects. The Renewable Energy Act of 2008 laid the groundwork for these incentives, while the Green Energy Auction Program (GEAP) has attracted developers by offering guaranteed government offtake for renewable energy projects.
“The GEAP allows developers to bid on renewable energy capacities with secured offtake agreements,” Tan said. “CREC won 792 megawatts of solar and wind capacity in the second round of the program, helping advance our renewable energy projects.”
The role of solar technology in energy stability
As part of its renewable energy expansion, CREC partnered with Trinasolar to secure a 2-gigawatt solar module supply. Trinasolar will provide its advanced Vertex N 720W Series solar modules, designed to improve efficiency and reduce energy costs.
“These modules offer high power output, lower installation costs, and greater durability,” Wang said. “Switching to these high-efficiency panels can reduce the number of modules needed, cut capital expenses, and improve overall electricity generation.”
For instance, in a 100-megawatt solar farm, upgrading to the new modules could lower the total number of panels required by 14%, saving up to 50 acres of land. The higher efficiency modules could generate an extra 500 megawatt-hours per month, reducing the project’s overall energy cost.
Solar power also plays a key role in stabilizing the energy grid, especially during peak demand hours.
“Peak electricity demand in the Philippines is usually between 10 a.m. and 2 p.m., when solar generation is at its strongest,” Tan said. “With battery storage, solar power plants can potentially provide energy even at night, further improving grid reliability.”
The future of renewable energy in the Philippines
The CREC and Trinasolar partnership highlights the urgency of transitioning to renewable energy in the Philippines. By combining Citicore’s expertise in solar development with Trinasolar’s advanced technology, the companies aim to accelerate the country’s clean energy adoption.
“This partnership will help meet the country’s growing energy demand while contributing to a more sustainable and greener future,” Wang said.