Auctions build a renewable pipeline
The International Energy Agency sees stronger policy support for cleaner power in the Philippines. Sue-Ern Tan, head of the IEA Regional Cooperation Centre, said government measures were creating a pipeline of bankable renewable projects.
The Department of Energy completed its fourth Green Energy Auction round in 2025. According to the department’s programme figures reported by Philstar.com, the auction secured more than 9,400 megawatts of renewable capacity.
Meanwhile, the department has set a 10-year auction roadmap. It targets at least 25 gigawatts of renewable capacity by 2035. The plan gives developers greater visibility over future procurement.
New bidding rounds are also widening the opportunity set. These include a special auction for waste-to-energy facilities and a fifth auction for fixed-bottom offshore wind projects.
The government wants renewables to account for 35 per cent of the energy mix by 2030. It has set a 50 per cent target for 2040, according to the Department of Energy. However, delivery will require investment beyond generation assets. Developers will need grid connections, storage, transmission upgrades and stronger system management.
Coal still supplies around 60 per cent of the energy mix. Renewables account for about 25 per cent, according to figures cited by the IEA. That gap leaves substantial room for new capacity, but it also highlights execution risks.
What does nuclear procurement mean for investors?
The Philippines is also preparing to reintroduce nuclear power. The Department of Energy plans to launch bidding for the country’s first commercially operational nuclear plant in June 2027.
The winning bidder could receive a ready market for its output. The project may also gain access to state funding support, according to the department’s plans. The country already has the Bataan Nuclear Power Plant. Built in the 1980s, it was never commissioned because of safety and political concerns.
The government now targets around 1,400 megawatts of nuclear capacity by 2038. Nuclear procurement would extend the investment case beyond renewable generation. It could support opportunities across engineering, transmission, safety systems, long-term power contracts and project finance.
Still, nuclear development will demand clear regulation and sustained public-sector capacity. It will also require careful coordination between government, utilities, lenders and technology providers.
The Philippines energy transition is therefore becoming a two-track investment story. Auctions are establishing near-term renewable opportunities, while nuclear planning addresses longer-term firm power needs. As a senior analyst covering Southeast Asian power markets might put it: the Philippines is now running two investment clocks simultaneously — one ticking toward 2030 renewables targets, the other toward a 2038 nuclear baseline.
Australia’s partnership with the Philippines on clean energy — tracked through the PROGRESS programme — adds another layer of bilateral support to the transition. For investors, the next signals to watch are auction awards, grid readiness and the terms of the 2027 nuclear tender.
Quick answers
The Department of Energy’s fourth Green Energy Auction round in 2025 secured more than 9,400 megawatts of renewable capacity, according to the department’s programme figures.
The Department of Energy plans to launch bidding for the country’s first commercially operational nuclear plant in June 2027, targeting around 1,400 megawatts of nuclear capacity by 2038.
Coal supplies around 60 per cent of the Philippine energy mix, while renewables account for about 25 per cent, according to figures cited by the International Energy Agency.
