Sylvie Willis
The Philippines has its own reserves of fossil fuels, with coal, natural gas, and crude oil accounting for 73-78% of the country's electrical energy needs in 2024. The country's most heavily used energy source is coal, which alone contributed nearly two-thirds of the total electricity production in 2024. However, the Philippines is also exploring renewable energy sources such as geothermal, hydropower, solar, and wind to reduce its dependence on fossil fuels and meet its growing energy demands.
| Characteristics | Values |
|---|---|
| Fossil fuel energy sources | Coal, natural gas, and oil |
| % of energy from fossil fuels in 2024 | 78% |
| % of energy from coal in 2024 | 63% |
| % of energy from natural gas in 2024 | 14% |
| % of energy from oil in 2013 | 5.97% |
| Number of coal-fired power plants as of 2016 | 32 |
| Number of natural gas generation facilities as of 2016 | 13 |
| Number of oil-powered power plants as of 2016 | 212 |
| Renewable energy sources | Geothermal, hydropower, solar, biofuels, wind, and hydrogen |
| % of energy from renewables in 2023 | 22% |
| % of energy from hydropower in 2023 | 9% |
| % of energy from geothermal energy in 2023 | 9% |
| % of energy from solar in 2024 | 3% |
| % of energy from biofuels in 2024 | 1% |
| Geothermal power station | 458-MW Makiling-Banahaw |
| Solar PV power project | Tarlac solar PV Park |
| Electricity Development Plan goal for renewable energy by 2040 | 50% |
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What You'll Learn
The Philippines' energy mix
The Philippines has a varied energy mix, with fossil fuels currently dominating. The country has a large and growing population, a burgeoning economy, and is facing an energy crisis.
In 2024, the Philippines generated 78% of its electricity from fossil fuels, with coal accounting for nearly two-thirds of that figure. The country's heavy dependence on coal is demonstrated by the large number of coal-fired power plants—32 as of 2016, with that number set to increase to 57 by 2030. Natural gas is the second most-used energy source, with 13 generation facilities connected to the grid as of 2016. Oil-based solutions are also used, with 212 gas and diesel-powered facilities in the Philippines as of 2016.
The Philippines also generates a significant amount of electricity from renewable sources, with around 22% of its electricity coming from low-carbon sources in 2024. Hydropower and geothermal energy each contribute around 9% of the country's energy, with solar and biofuels making up smaller portions at 3% and 1% respectively. The government has introduced policies to encourage the development of renewable energy sources, such as tax breaks and duty-free import of equipment. The Philippines has also opened RE projects to 100% foreign ownership to encourage investment.
The Philippines has set targets to increase its renewable energy share to 35% by 2030 and 50% by 2050. However, there are concerns about the country's commitment to these targets, as there are no penalties for utilising different energy sources, and commercial decisions tend to favour lower-cost fossil fuels.
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Fossil fuel reserves
The Philippines has a varied energy mix, but it is currently heavily reliant on fossil fuels, with coal, natural gas, and oil accounting for 73.56% of the country's electrical energy needs. The Philippines is one of the world's top producers of geothermal energy, but it still has a large number of fossil fuel power plants, with 32 coal-fired power plants as of 2016, which is set to increase to 57 by 2030. The country also had 13 natural gas generation facilities connected to the grid as of 2016.
The Philippines' fossil fuel reserves are dominated by coal, which accounts for 70.1% of all proven fossil fuel reserves. Natural gas makes up 24.6% of reserves, and oil accounts for 5.3%. The country's energy demands are high, and it has a large number of oil-powered plants due to their lower output per plant compared to coal and natural gas. The majority of oil and gas exploration and drilling activities take place off the west coast of Palawan, with a natural gas pipeline running to Luzon.
The Philippines has coal districts distributed throughout the country, with the main coal fields under development on Semirara Island. The Panian coalfield is the largest of three coalfields on the island. There are also coal reserves in Cebu, Zamboanga Sibugay, and Albay.
The Philippines has introduced policies to encourage renewable energy, including income tax breaks and duty-free import of equipment. The country has a significant potential for renewable energy-based power generation, with geothermal energy already accounting for over 43% of renewable electricity.
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Coal-fired power plants
The Philippines has a heavy dependence on coal, with coal-fired power plants spread throughout the country. As of March 2016, there were 32 coal-fired power generation facilities connected to the energy grid, most of them in Luzon and Visayas. The number of coal-fired power plants is expected to increase by 25 by 2030 to meet the country's growing energy demands.
In 2013, the Philippines sourced approximately 42.62% of its electrical energy demand from coal, amounting to 32,081 GWh out of a total demand of 75,266 GWh. As of 2019, coal accounted for about half of the country's electricity supply. The Philippines' continued reliance on coal is evident, with coal-fired power plants remaining the leading source of energy in the country. In 2023, coal-fired power plants had a total installed capacity of about 12,406 megawatts, making coal the highest share of energy sources in the Philippines.
The Department of Energy (DOE) has stated that there is no total ban on developing coal-fired power plants in the Philippines. While a moratorium was issued in 2020 to disallow the construction of new coal-fired power projects, it excluded existing facilities with expansion commitments and projects with substantial accomplishments. The government aims to increase the share of renewable energy in the power mix to 35% by 2030 and 50% by 2040. However, the Philippines faces a supply gap during power-hungry summer months, and coal continues to play a significant role in meeting the country's energy needs.
The Philippines also benefits from the sharing of surplus energy supply from Visayas geothermal fields through the Leyte-Luzon HVDC interconnection since 1998. The Mindanao-Visayas Interconnection (MVIP), operational since July 2023, further enables the sharing of surplus electricity and provides power contingencies across the major islands. While the Philippines explores renewable energy options, coal-fired power plants remain a significant component of the country's energy landscape.
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Natural gas and oil
The Philippines has a varied energy mix, with fossil fuels such as coal, natural gas, and oil accounting for 73.56% of the country's total electrical energy needs. Natural gas and oil play a significant role in the country's energy landscape.
In 2013, the Philippines sourced 24.97% of its electrical energy from natural gas, with 13 natural gas generation facilities connected to the grid as of March 2016. The Malampaya natural gas field, located 50km west of Palawan Island, has been a significant source of natural gas. As of 2017, it had produced 1.94 trillion standard cubic feet of gas and 75 million barrels of associated natural gas condensate. The natural gas from Malampaya provides clean fuel for power plants in Luzon and Batangas, the country's largest island.
Oil also contributes to the Philippines' energy mix, although to a lesser extent than coal and natural gas. In 2013, oil-based sources accounted for 5.97% of the country's energy needs, with 212 gas and diesel-powered facilities in operation as of March 2016. Oil-powered plants are dispersed across several provinces in Luzon, Visayas, and Mindanao.
The Philippines has explored and developed new oil and gas fields to enhance its energy security. In 2018, an estimated 27.93 million barrels of inland oil were discovered in Alegria, Cebu, with 3.35 million barrels estimated as recoverable oil. Additionally, the country has explored areas like the Spratly Islands, a disputed territory, where active oil fields supply the rest of the country. The DOE has also approved developments in "Area 9" of the Cotabato Basin by the SK Liguasan Oil and Gas Corp.
The Philippines aims to balance its fossil fuel usage with renewable energy sources. The government has introduced policies to encourage renewable energy development, including income tax holidays and duty-free import of equipment for renewable energy technologies.
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Renewable energy sources
The Philippines has considerable renewable energy potential, with multiple locations of existing, upcoming, and potential facilities. The country is vulnerable to price fluctuations and supply constraints due to its dependence on imported fossil fuels, such as coal, natural gas, and oil. As a result, the Philippines now has some of the highest electricity costs in Southeast Asia.
The Philippines has set renewable energy goals to address this issue and reduce its dependence on fossil fuels. The country currently targets a 35% renewable energy share in the power generation mix by 2030 and 50% by 2040. This would guarantee energy security and self-sufficiency, reduce reliance on imports, boost local economic development, and promote a favourable investment climate.
The Philippines utilizes various renewable energy sources:
- Hydropower: The Philippines has 29 hydroelectric plants, with 14 being conventional dam systems and 15 being run-of-river systems. Hydropower accounts for 11.8% of the country's energy generation and 14% of its entire power generation capacity.
- Geothermal: The Philippines has ten geothermal plants, with three of the more known plants located near the Mayon Volcano in Albay, an active fault line in Leyte, and Mount Apo in North Cotabato. Geothermal energy is the cheapest and most economically attractive energy source in the Philippines.
- Solar: There are around 60 solar power plants in the Philippines, with 40 of them in Luzon. The Global Solar Atlas indicates that Northern and Central Luzon have the highest solar power potential in the country. Solar installations can also be found on commercial and industrial structures and some house rooftops.
- Wind: German wind and solar farms developer wpd GmbH has committed to investing in offshore wind farms in Cavite, Negros Occidental, and Guimaras.
- Biomass: There are around 40 biomass plants across the country, with some in Negros Occidental using sugarcane to produce electricity. The Philippines also uses biogas from landfills as a biomass energy source.
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Frequently asked questions
Yes, the Philippines has its own reserves of fossil fuels in the form of coal, natural gas, and crude oil.
The Philippines' current energy mix highly favors fossil fuels, with coal being the most heavily used energy source. In 2024, coal alone accounted for nearly two-thirds of the total electricity production.
In 2024, over three-quarters (78%) of the Philippines' electricity consumption came from fossil fuels, with coal accounting for the majority of that figure.
The Philippines has a significant opportunity to utilize renewable energy sources, with current low-carbon sources including hydropower, geothermal energy, solar, and biofuels.
The Philippine government has introduced policies to foster renewable energy, such as income tax breaks and duty-free import of equipment for renewable energy technologies. Under the Electricity Development Plan 2020-2040, the goal is to generate 50% of electricity from renewable sources by 2040.
