MBC Statement on Private Investments on PH Grids

03 April 2025 – The Makati Business Club advocates reliable, affordable and renewable power. To achieve this, bottlenecks and challenges must be resolved through policy reform.

One of the main issues is Philippine grid infrastructure. The Philippines has yet to achieve full electrification. As of June 2023, household electrification levels stood at 91.1%. The Department of Energy (DOE) is seeking to achieve 100% electrification by 2028.

The Philippine Energy Plan aims to increase the share of renewable energy in the Philippine energy mix to 35% by 2030 and 50% by 2040. According to the International Energy Agency, investment in renewable energy has been outpacing grid spending since 2018 by an average funding gap of $200 billion. According to a study by BMI Research (under Fitch Group), as of 2023, the funding gap has reached an average of $328 billion. ¹

Increased investments in grid infrastructure improve the development of renewable energy, and reduce long-term cost, by improving transmission efficiency. These improvements need to happen at a faster pace given the growing interest of investors in the Philippine renewable energy industry. The 2024 Climatescope report by BloombergNEF has ranked the Philippines as the second-most attractive emerging market for renewable energy investment.

MBC is proposing that the executive department issue an executive order allowing a build-operate-transfer scheme for Philippine grids. This would allow third-party investors, whether private sector, or Government-Owned and Controlled Corporations, to build needed transmission infrastructure, and accelerate grid development, both of which are critical to achieving reliable, affordable, renewable energy.

MBC also advocates increased public-private partnerships in off-grid solutions to help the country finally achieve 100% electrification.

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¹ Grid Infrastructure cant’ cope with RE boom – BMI Research