The Philippine Solar and Storage Energy Alliance (PSSEA) has warned that escalating diplomatic tensions between the Philippines and China could disrupt solar power projects, threaten jobs, and slow efforts to address looming electricity supply gaps, particularly in the Visayas and Mindanao. While expressing support for lawmakers and policymakers, PSSEA appealed for a calibrated approach to foreign relations. 

In a January 29 letter addressed to Senators Pia Cayetano and Win Gatchalian, the industry group said recent “intense exchange of words” between the Chinese Embassy and Philippine officials has caused “serious concern within the solar industry,” citing risks to trade flows that underpin most local solar deployments.

PSSEA is a non-profit association that represents nearly 100 companies across the solar value chain, including installers, contractors, technology providers, financiers, developers, and power generators. It said its members are directly involved in delivering solar power and storage solutions to households, small businesses, and off-grid or unlighted communities nationwide.

At stake, according to PSSEA, is a sector that has become a material contributor to the country’s energy security and employment base. Since 2012, solar developers have built close to 3,000 megawatts of utility-scale capacity, while Department of Energy (DOE) data cited by the group shows the sector generated about 203,000 jobs between 2009 and 2022. Annual direct employment is projected to reach at least 10,000 new jobs a year leading up to 2030.

The Alliance pointed to the industry’s heavy dependence on China for equipment. “China is our primary source of solar modules, mounting structures, inverters, batteries, and other balance-of-system components. It provides the lifeline of the solar business,” the letter, signed by PSSEA chairperson and founder Tetchi Capellan and PSSEA president Ping Mendoza, said. A disruption in this supply chain, it warned, would delay construction timelines and hit employment, incomes, and government revenues tied to solar projects.

PSSEA also linked the issue to near-term power supply risks. The group said it had “accepted the challenge of DOE Secretary Sharon Garin to build more solar rooftops so the government can avert an impending electricity shortfall in the Visayas and Mindanao,” with plans to accelerate rooftop installations this year to deliver additional capacity by 2027.

Small and medium-scale solar installers are among the most exposed, the Alliance noted, as they rely on imported components to fulfill contracts for homes, streets, and unserved communities. “Technicians and engineers support their families through the income derived from these installations,” it said, adding that workers are increasingly anxious about the potential fallout from a breakdown in diplomatic relations.

“We respectfully ask that our national leaders take into account the negative impact that a strained relationship with China will bring to the families and jobs of those who depend on the solar industry,” the group said.

PSSEA called for de-escalation, urging leaders “to continue seeking a better diplomatic path and to find ways to resolve differences with China, so we can collectively help our people and our country prosper.”

How should policymakers balance geopolitical considerations with the energy sector’s reliance on global supply chains? Share your views. 

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.