markets Philippines

In the Philippines, as a result of hefty taxes and the absence of subsidies, electricity tariffs are very volatile. Since 2004, they have escalated at an annual average rate of 2.4%. The government expects demand to rise by 6% each year, with supply struggling to keep up.

Operating across energy value chain in the Philippines

Key figures

  • Present since 1997
  • 420 service stations
  • 3,730 employees

Local businesses

  • Exploration & Production
  • Refining & Chemicals
  • Trading & Shipping
  • Renewable Energies
  • Marketing & Services

Hefty taxes and the absence of subsidies lead to high and volatile tariffs in the Philippines

Installed Power Capacity (2016)

Energy sector overview

  • Diverse generation mix, but supply capacity is below demand.
  • About 45.9% of demand comes from C&I customers.
  • More than 40% of companies rely on diesel generators.
  • The government expects demand to rise by 6%/year in 2016-40, with supply struggling to keep up.

Electricity Prices, Industrial Users

Electricity tariffs evolution (C&I)

  • Tariffs are not subsidized. They edged up in 2004-13, before levelling off recently in line with lower coal prices.
  • Currently: 18-22 US cents/kWh (among highest globally).
  • Planned changes in fuel taxes are likely to shore up tariffs for C&I customers.


Government Lead Initiatives:

  • Philippines Energy Plan 2012-2030: to reach 50% renewable energy in primary mix by 2030, with +9.9 GW new renewable generation capacity, including 5.4GW hydro, 2.3 GW wind, 1.5GW geothermal, 350 MW solar (already surpassed) and 277 MW biomass
  • Policy makers are considering Renewable Portfolio Standards (RPS) to further develop solar and wind
  • Conditional greenhouse gas reduction target of 70% below business as usual (BAU) levels by 2030 (2015)


  • Net metering (Res 9/2013) for < 100 kW from renewable energy sources. Contract is signed with the distribution utility, remuneration depends on the blended generation cost of the off-taker
  • Bilateral contracts combined to high power prices are a strong driver for PV development in the next years
  • RPS drafted by the Department of Energy in June 2016: Distribution Utilities and Cooperatives covered by the RPS would be required to have a 35% share of renewable in their portfolio by 2030.
  • The RPS for off-grid areas is expected to spur socio-economic development and help address environmental concerns in the countryside.

Project Reference