The Philippines’ energy sector remains coal-reliant, with coal plants supplying 62% of power generation in 2024, the International Energy Agency (IEA) said in its latest report. While renewable energy is forecast to increase to 24% by 2027, coal will still play a major role in baseload power supply, as demand for electricity continues to grow by over 5% annually.
IEA reported that despite a slowdown in coal generation growth from 7% in 2018-2024 to 4% in 2025-2027, and the implementation of a coal moratorium, the Philippines remains heavily reliant on coal. It added coal’s share in the energy mix is seen to decline only slightly to 60% by 2027.
“Overall, growth of coal generation moderates to 4% in 2025-2027, down from 7% in 2018-2024,” said IEA.
The organization also said that since the Department of Energy (DOE) allowed previously approved coal projects to proceed despite the 2020 moratorium, the policy’s impact will only become evident in the medium to long term.
Additionally, the IEA shared that electricity demand in the Philippines grew by 5% in 2024, with projections indicating an average annual increase of over 5% from 2025 to 2027. This growth aligns with the country’s GDP forecasts, as rising economic activity is expected to drive higher electricity consumption during this period.
The Philippines is poised for a renewable energy surge, with solar and wind power leading the charge in the country’s evolving energy mix.
Solar photovoltaic (PV) generation soared by 35% in 2024, a growth trajectory expected to continue with a 29% annual increase through 2027, thanks to government incentives and cheaper PV modules. Wind power also gained momentum, expanding by 21% last year, and is projected to grow by 24% annually during the same period.
Despite these renewable gains, natural gas is set to retain its 14% share of the electricity mix from 2025 to 2027, maintaining its role as a reliable backup for intermittent solar and wind sources.
Hydropower faced setbacks in 2024 due to drought conditions but is expected to recover with a modest 3% annual growth as weather patterns stabilize.
The gradual shift to renewables aligns with the government’s long-term energy goals, signaling a steady yet transformative change in the country’s power landscape.
Discover what the IEA says about the country’s energy future—follow Power Philippines for other developments.
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