The Philippine Solar and Storage Energy Alliance (PSSEA) said the solar energy industry is forecasted to expand further this year amid rapid pace of installation, helping the country reach its decarbonization goals.

In a statement, the PSSEA noted the global rise of solar installations is anticipated to increase by 20 percent, making solar the largest source of clean power generation capacity worldwide.

“In 2017, solar surpassed nuclear energy; it surpassed wind in 2022 and overtook hydropower in 2023,” it stated.

The group believes solar generation contributes significantly to the country’s goal of decarbonizing the grid by 2030.

“The projected share of solar in the energy mix for 2025 is encouraging as it remains the cheapest and fastest source of electricity to install.”

The PSSEA said that with continued rapid and steady growth, solar PV capacity will surpass all other electricity generation technologies globally.

It cited floating, rooftop, and land-based solar as attractive options for investors in the Philippines.

“The additional installations resulting from the Green Energy Auction 4 (GEA-4) will increase solar's share in the country’s energy mix. The government's commitment to holding yearly auctions strengthens the administration's credibility in achieving its energy transition goals,” PSSEA said.

However, delays in GEA-4 have caused concern among potential investors.

GEA-4 will include renewable energy (RE) capacities with energy storage systems (ESS). The solar industry has urged the Department of Energy (DOE) to stay on track toward reaching net-zero emission goals by contracting the round for solar in the first quarter of this year.

“Any further delay in GEA-4 will significantly impact the commitment of funders and partners.”

Additionally, the PSSEA encouraged the DOE to address curtailment, the practice of reducing renewable energy output, such as solar, to manage grid stability. This typically applies to large-scale solar power plants and distributed residential rooftop solar PV systems, which grid operators can remotely shut down to prevent overload risks.

Finally, the PSSEA lauded the DOE for adding integrated RE with storage (IREs) to this year's auction, stating, “This solution will provide a short-term solution and allow additional solar capacity into the grid. We urge the DOE to remain steadfast in its commitment to renewables and introduce storage solutions to the 2025 auction schedule.”