The Philippines climbed nearly 30 spots to rank 76th out of 118 countries in the World Economic Forum’s (WEF) 2025 Energy Transition Index (ETI), a significant rise from its 105th place ranking in 2024. While this marks a notable improvement in system performance, particularly in equity and sustainability, the country’s low transition readiness score signals persistent challenges in infrastructure, regulation, and investment support.

According to the WEF report, released in June 2025, the Philippines scored 62.1 in system performance but only 39.3 in transition readiness, bringing its overall ETI score to 53.0. This places it behind most of its ASEAN peers, including Malaysia (47th), Vietnam (49th), Thailand (51st), Singapore (52nd), Indonesia (58th), and Cambodia (73rd).

The ETI, developed in collaboration with Accenture, evaluates countries on two major dimensions: system performance (energy security, equity, and sustainability) and transition readiness (regulation, infrastructure, innovation, finance, and human capital). 

The Philippines’ strong system performance was buoyed by increased access to energy and a cleaner energy mix, reflecting equity and sustainability gains. However, its transition readiness score ranks among the lowest in the region, indicating weak enabling factors to support long-term progress.

This readiness gap is critical. As the WEF report notes, “progress on transition readiness slowed… marking the first time since 2017 that system performance outpaced preparedness,” a trend that could jeopardize future improvements if not addressed. Transition readiness is crucial for attracting capital, ensuring grid resilience, and integrating renewable energy at scale.

Among the top issues identified globally are inadequate infrastructure, limited financing in developing economies, and the growing pressure on energy systems from digitalization and artificial intelligence. For the Philippines, these challenges are compounded by grid capacity concerns—a point noted by Chinabank Capital’s Juan Paolo Colet in a separate interview with Manila Bulletin. “We need to accelerate the expansion and modernization of the grid as part of a national strategy of ensuring sustainable energy security,” Colet said.

The WEF emphasizes that energy transitions must align ambition with delivery. “Success will depend not just on accelerating ambition but aligning it with delivery capability,” the report said, calling for stable regulation, credible project pipelines, and a supportive investment ecosystem.

The Philippines is targeting a 35% renewable energy share by 2030 and 50% by 2040. But with its current readiness lagging, policy reform and grid modernization must be fast-tracked to avoid a plateau in future performance.

What are your thoughts on the Philippines’ energy transition readiness? Should infrastructure investments be prioritized over generation targets? Join the conversation. 

Follow Power Philippines on Facebook and LinkedIn or join our Viber community to stay up to date on the latest energy news.