Electric cooperatives (ECs) in the Philippines are urged to accelerate their transition to renewable energy (RE) as global oil price volatility threatens power stability and drives up electricity cost, an expert from transition and transaction advisory firm Climate Smart Ventures (CSV) said.

Speaking on Day 1 of the 2026 EC Summit on April 14 at Novotel Manila Araneta City in Quezon City, CSV Senior Associate Nian Sayoc highlighted how recent global events, particularly the Iran-U.S. war, have caused sharp increases in fuel prices.

He noted that 80% of Asia’s oil imports pass through the Strait of Hormuz, which directly impacts Philippine fuel supply chains. This, he said, poses a significant risk to the country’s franchise areas, particularly in off-grid communities.

“We know that over 1.2 million households in these rural areas are reliant on our ECs and also in the SPUG [small power utilities group] areas with our diesel gensets,” Sayoc said.

“Mean of Platts Singapore (MOPS) gasoline prices surged by 13% in just three days, and this is a trend that we’re seeing,” he added.

According to Sayoc, limited diesel supply and rising costs in SPUG areas are already causing load shedding, with blackouts lasting 8 to 16 hours in some locations.

In response, Sayoc emphasized that adopting RE is no longer solely about decarbonization, but a practical strategy to stabilize energy supply and reduce exposure to volatile fuel costs.

Some key technologies for the EC energy transition journey include solar PV, as well as wind and mini-hydro resources. 

Energy storage is becoming increasingly viable due to significant cost declines. Since 2010, Sayoc shared that prices have declined by around 93%, making energy storage more affordable.

Supporting technologies such as smart grids and advanced metering infrastructure (AMI) are also important, as well as gradual hybridization by replacing diesel with renewables.

Key business models for transitioning

During his presentation, Sayoc also outlined the current challenges faced by the ECs, including heavy dependence on diesel, outdated infrastructure, and a passive operating model.

To address this, he presented four key business models for transitioning: continuing with renewable power supply agreements (PSAs), developing or entering joint ventures (JVs) for renewable generation, operating microgrids in off-grid areas, and partnering with a third-party microgrid service provider (MGSP).

“Just to emphasize again that these are not mutually exclusive. For some of our ECs that are both in the off-grid and on-grid, we have all these options,” Sayoc stressed.

“It doesn’t have to be one or the other, it can be sequential or even for our off-grid area, explore natin muna baka pwedeng i-waive or meron tayong strategic JV for on-grid. If there’s more RE coming in, we’ll secure more RE contracts,” he added. [It doesn’t have to be one or the other—it can be sequential. For our off-grid areas, we can first explore whether it can be waived or consider a strategic joint venture for on-grid. If more renewable energy comes in, we will secure more RE contracts.]

Sayoc called on the ECs to actively participate in this transition by adopting innovative models, strengthening partnerships, and maximizing existing policy support.

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