Power generation in the Philippines set to grow by 7% y-o-y in 2024

The country is importing natural gas for energy security.

The Philippines’ value-added output and electricity power generation and distribution are projected to increase by 7% year-on-year (YoY), with gas, renewables, and transmission development as potential growth drivers.

In a report, McKinsey noted that the country is focused on ensuring energy security through the importing of liquified natural gas as the production in the Malampaya gas field, one of the country’s main natural gas sources is declining.

LNG is positioned to be a transitional fuel with the country’s moratorium on coal.

“High global inflation and the fact that the Philippines is a net fuel importer are impacting electricity prices and the build-out of planned renewable energy projects,” the report read.

“Recent regulatory moves to remove foreign ownership limits on exploration, development, and utilization of renewable energy resources could accelerate growth in the country’s energy and power sector,” it added.

Meanwhile, the growth momentum of green energy auctions will boost the development of renewables at scale as the country aims to reach 35% renewables share by 2030.