Energy capacity jumps 120 GW as foreign investment floods clean sector
The private sector is increasingly committing to cleaner energy sources, with the Department of Energy (DOE) recording more than 120 gigawatts (GW) of indicative and committed capacity for the power grid, according to officials.
During the 2025 Energy Security Forum on Tuesday, Dec. 9, Energy Undersecretary Mylene Capongcol said the surge was due to influx of direct international ownership.
“We have opened up foreign ownerships in RE [renewable energy] projects up to 100 percent, which bolstered investment in the RE sector,” Capongcol said. “In fact, based on a report from the Board of Investments [BOI], power and energy accounts for 58.74 percent, or equivalent to about ₱479.78 billion, of the 2025 investments in the country.”
Recent DOE data disclosed about 1 GW of new energy capacity, complemented by 160 megawatts (MW) of new energy storage systems (ESS) in Luzon and Visayas. Most of the new capacity comes from renewables, though one oil-based and one natural gas system have also begun commissioning.
Capongcol stressed the significance of ESS in meeting higher energy demand.
“We also recognize the rapid growth in demand for Battery Energy Storage Systems and critical minerals,” she added. “The Philippines stands uniquely positioned with its nickel and copper resources, allowing us not only to participate in but to help anchor the global clean energy supply chain.”
Capongcol also noted that the recent launch of the fifth Green Energy Auction (GEA-5), which is dedicated solely to offshore wind (OSW) projects, requires intensified coordination with the Philippine Ports Authority (PPA) and foreign partners.
“We are upgrading port infrastructure to support offshore wind and large-scale clean energy equipment,” the DOE executive said.
The BOI recently confirmed that the energy sector accounted for the largest share of total investment approvals, with 261 energy infrastructure projects securing the board’s go-signal.
Energy Secretary Sharon Garin welcomed the investment pipeline, noting it could improve the country’s economy and generate careers.
“We will continue to work closely with the private sector and our partner agencies in the national government and local government units (LGUs) to ensure that these approved investments will ripen into beneficial and tangible energy infrastructure for our people,” she said in a statement.
“Hydropower and offshore wind are central to our medium- and long-term energy planning. They bring us closer to our renewable energy targets and help shield Filipino consumers from volatile fossil fuel prices,” the official concluded.