Philippines’ annual renewable power generation to reach 69.4TWh in 2035

The Department of Energy in the Philippines has established an ambitious objective of attaining 35% renewable energy generation by 2030. Furthermore, the country is on a path to install 15GW of clean energy by the same year. It has also set a target of achieving 50% renewable energy generation by 2040. Against this backdrop, annual electricity generation from renewables in the country is forecast to reach 69.4TWh in 2035, registering a compound annual growth rate (CAGR) of 13.1% during 2024-35, according to GlobalData, a leading data and analytics company.

GlobalData’s latest report, Philippines Power Market Outlook to 2035, Update 2025 – Market Trends, Regulations, and Competitive Landscape, shows that in 2024, thermal power dominated the generation mix with 78%, followed by renewable power accounting for 15.6%. Large hydro and pumped storage accounted for the remaining 6.4% share. In 2035, thermal power is expected to continue to account for a 62.7% share followed by renewables and large hydro and pumped storage accounting for 33% and 4.3%, respectively.

To realize its renewable capacities goals, the Philippines is focusing on a 75% increase in geothermal capacity, a 160% rise in hydropower capacity, an expansion of wind power to 2.3GW, and an increment of biomass power by 0.3GW, all by 2040, using 2020 as the baseline year.

Attaurrahman Ojindaram Saibasan, Senior Power Analyst at GlobalData, comments: “The Philippine government’s dedication to renewable energy is underscored by its strategic policies and collaborations designed to augment the proportion of renewables within the nation’s energy portfolio. In line with its renewable energy objectives, there have been several noteworthy developments. For example, a $15 billion agreement with UAE-based Masdar is concentrating on the advancement of solar and wind projects, as well as battery storage initiatives, with the aim of achieving 1GW of clean energy by 2030.”

Between 2025 and 2030, a total of $26.2 billion is expected to be invested in the country’s power sector, of which solar PV is expected to account for a share of 38.8%, followed by onshore wind accounting for 19.4% share. Offshore wind power is expected to account for 17% share.

Saibasan concludes: “The Philippines is witnessing a consistent rise in electricity demand, attributable to economic expansion, urban development, industrial growth, and the broadening of digital infrastructure. In response to this escalating need, the nation is executing a range of strategies, which include the development of infrastructure, diversification of energy sources, and the enactment of policy reforms.”