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Philippine solar goals at risk as China tensions flare

Published Jan 30, 2026 05:05 pm
The Philippine Solar and Storage Energy Alliance (PSSEA) urges lawmakers to maintain stable trade relations with China, warning that a diplomatic breakdown could derail the country’s renewable energy targets and cripple local employment.
In a formal appeal addressed to Senators Pia Cayetano and Win Gatchalian, the industry group said the Philippines’ heavy reliance on Chinese manufacturing for critical infrastructure.
China remains the primary source for solar modules, mounting structures, inverters, and battery systems that underpin the domestic industry.
The alliance stressed that any disruption to these supply lines would lead to immediate construction delays and significant losses in fiscal revenue.
The intervention follows a period of heightened friction between Manila and Beijing. Recent heated exchanges between the Chinese embassy and Philippine lawmakers, alongside tensions involving the Philippine Coast Guard, led some officials to call for certain Chinese diplomats to be declared persona non grata.
While President Ferdinand Marcos Jr. ultimately rejected those calls, the PSSEA noted that the mere threat of severed ties has created a climate of uncertainty for energy developers.
The group noted that the stakes are particularly high for small- and medium-sized enterprises. These entities, which focus on installing solar and battery systems in residential areas and off-grid communities, depend almost exclusively on Chinese components to fulfill their contracts.
According to the alliance, technicians and engineers have expressed growing anxiety that a cessation of diplomatic or trade relations would directly impact their ability to support their families.
The timing of the diplomatic tension is also a concern for the nation’s broader energy security. The Department of Energy has called for an aggressive expansion of solar rooftop installations by 2027 to address chronic electricity shortfalls in the Visayas and Mindanao regions.
Meeting these goals requires a steady, cost-effective flow of hardware that currently only Chinese suppliers can provide at scale.
The alliance concluded its appeal by asking national leaders to weigh the geopolitical rhetoric against the economic reality of the energy transition. It argued that the families and jobs dependent on the solar sector are vulnerable to the "negative impact" of strained bilateral ties.
As the Philippines seeks to reduce its reliance on fossil fuels, the PSSEA maintains that the path to energy independence ironically requires a steady partnership with the world’s largest producer of solar technology.
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