Diversification is ‘golden rule’ for Philippine energy security — IEA

By Sheldeen Joy Talavera, Reporter 

JAKARTA — The Philippines must focus on diversifying its energy sources and strengthening its power system to sustain progress in its clean energy transition, an International Energy Agency (IEA) official said.

Sue-Ern Tan, head of IEA Regional Cooperation Centre, said the Philippines must accelerate its long-term plan of diversification and maximize its homegrown energy resources.

“The instability that’s happening in the Middle East is continuing, but I think the key is that focus on diversification is the golden rule of energy security,” Ms. Tan said on the sidelines of Enlit Asia 2026.

“Thinking through who you get your supplies from and what are the different types of supplies will remain a very key principle for the Philippine government as it considers its energy security challenges,” she added.

The conflict in the Middle East has underscored the Philippines’ vulnerability to disruptions in global energy markets, given its heavy reliance on imported fuel.

The Philippines sources over 90% of its oil supply from the Middle East, making it vulnerable to global supply disruptions and price swings.

Coal remains the backbone of the Philippines’ power mix, accounting for about 60%, while renewable energy makes up roughly 25%.

The country is aiming to raise the share of renewable energy to 35% by 2030 and 50% by 2040.

Ms. Tan acknowledged the Philippines’ momentum in moving away from imported fossil fuels such as coal.

“The government is thinking through how else we can source our power supply, including making the most of the excellent renewable energy resources that the Philippines has, which is very, very positive,” she said.

The IEA official said the government’s green energy auction (GEA) program has been “a really positive signal to the market to create a list of a pipeline of bankable projects.”

Since the first round of GEA was launched in 2022, the Department of Energy (DoE) has so far completed four auctions, which are expected to deliver about 21 gigawatts (GW) of capacity through 2035.

The previous auctions involved solar, onshore wind, biomass, geothermal, hydropower, and energy storage systems.

The DoE is advancing a 10-year GEA program that aims to offer an additional 25 GW of renewable energy capacity from 2027 to 2035, with the current focus on offshore wind and waste-to-energy projects.

Ms. Tan said the IEA is collaborating with the DoE to determine how the Philippines can integrate more of its homegrown resources into the existing power system.

“I think it’s continuing to do some more of that integrated planning. And it’s not necessarily a gap, but I think it’s continuing to focus more on how we integrate more of that variable renewable energy into the power system,” she said.