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TL;DR
The sources of electricity in the Philippines are primarily fossil fuels. Coal is the country’s top energy source, followed by natural gas and renewable sources.
- Coal powers over 60% of the national grid.
- Natural gas from Malampaya is a cleaner alternative; however, its reserves are dwindling.
- Renewables are growing rapidly, particularly solar and geothermal energy.
- Remote, off-grid areas typically use oil-based power.
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Electricity fuels your daily routines–charging your phone, running your business, cooling your home, and more. But have you ever wondered where that power comes from? A mix of local resources, government policies, and global energy shifts shapes the energy mix.
With an infinitely rising demand and an urgent call for cleaner solutions, the Philippines faces both opportunities and challenges in powering its future.
This article examines the major sources of electricity in the Philippines and what they reveal about the nation’s energy direction.
Main Sources of Electricity in the Philippines
The Philippines relies on both traditional and renewable energy sources, each serving a distinct role in meeting demand. Understanding their benefits and trade-offs provides a clearer view of the country’s power mix.
1. Coal
Coal is currently the dominant source of electricity in the Philippines, accounting for over 60% of the energy mix. It fuels baseload plants that run continuously to meet demand, with supplies coming from local mines like Semirara Island and imports from Indonesia.
In 2024, the government declared a partial moratorium on new coal power plants, signaling a shift toward cleaner energy. However, existing plants remain a critical part of the grid.
Pros:
- Reliable for large-scale, round-the-clock electricity generation
- Cost-effective in terms of per-kilowatt output
- Well-established infrastructure
Cons:
- A major contributor to greenhouse gas emissions and air pollution
- Vulnerable to price volatility in the global coal market
- Increasingly under scrutiny due to environmental policies and goals, and labor concerns
- Insufficient local resources, so importing is necessary
2. Natural gas
Natural gas accounts for approximately 15% of the country’s electricity, with power plants drawing primarily from the Malampaya gas field located off the coast of Palawan. It’s a relatively cleaner fossil fuel and highly usable in several large combined-cycle gas turbine plants around the Philippines.
Pros:
- Lower carbon emissions than coal
- Highly efficient when used in modern gas plants
- Supports quick ramp-up to meet demand surges
Cons:
- Malampaya’s reserves are rapidly depleting, with supply expected to dwindle in the coming years
- No primary replacement source is currently in operation
- High cost and infrastructure needs for importing liquefied natural gas (LNG)
3. Renewable energy
Renewables comprise a growing portion of the energy mix, currently contributing around 10-15%. The Philippines’ diverse geography offers significant potential for hydropower, geothermal, solar, wind, and biomass energy sources.
However, slow policy implementation, limited incentives, and outdated grid infrastructure hinder large-scale adoption. Still, increasing government support paints a hopeful picture. Here’s what each type of renewable energy can do:
Hydropower
This type harnesses energy from flowing rivers and reservoirs. It’s a major contributor, especially in regions with mountainous terrain.
Pros: Renewable, low emissions, reliable in rainy seasons
Cons: Output varies with water levels, susceptible to droughts
Geothermal
The Philippines is one of the world’s leading producers of geothermal energy. Plants in Leyte, Bicol, and Negros tap into underground heat.
Pros: Constant output, renewable, low emissions
Cons: High upfront cost, limited to geologically active areas
Solar energy
The type has experienced rapid growth in recent years, especially in sunny urban and rural locations. Rooftop installations and solar farms are expanding. Technology is also constantly improving across all types of solar energy.
Pros: Scalable, sustainable, declining costs, works almost anywhere
Cons: Intermittent (no generation at night), storage infrastructure is still limited
Wind energy
Most notable in Ilocos Norte and Guimaras, wind turbines capitalize on the country’s coastal winds.
Pros: Renewable, low operating costs
Cons: Seasonal variations, limited viable sights, potential habitat concerns
Biomass
This type converts agricultural waste—such as sugarcane bagasse, rice husks, and coconut shells—into energy.
Pro:
- Helps reduce farm waste, promotes the circular economy
Cons:
- Requires a steady supply chain
- May involve emissions if not well-handled
4. Oil-based fuels
Oil-based power generation makes up a small but critical portion of the grid. Operators primarily use them in off-grid or island communities, as well as for backup during peak demand or outages.
While not ideal for long-term use, oil-based generators are still crucial for maintaining grid stability and meeting emergency power needs.
Pros:
- Crucial for energy access in remote and underserved areas, which the Philippines has a lot of
- Quick deployment and startup
Cons:
- High operational costs and volatile fuel prices
- High emissions and relatively low energy efficiency
Powering the Nation Forward
The Philippines stands at a crossroads: it can continue relying on traditional energy sources or embrace a more sustainable future. While coal and natural gas still dominate the power mix, the steady rise of renewables reflects a changing priority.
Cleaner, decentralized energy solutions can reduce reliance on imports, expand access to energy, and drive progress without compromising the environment. Whether you’re a homeowner or business owner, the shift to renewables starts with a single step.
If you’re interested in future-proofing your home, SolarNRG can help you acquire solar panels for homes and businesses quickly and affordably.
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FAQs
1. What are the main sources of electricity in the Philippines?
The primary sources are coal, natural gas, hydropower, geothermal energy, solar energy, wind energy, biomass, and oil-based fuels.
2. How vital is coal energy in the Philippines’ energy mix?
Coal is the largest energy source, supplying more than 60% of the country’s electricity, mostly through baseload power plants. Local resources are limited, so coal is being heavily imported.
3. What role does natural gas play in the country’s power supply?
Natural gas is the second-largest source, used mainly in Luzon, but supply from the Malampaya field is declining.
4. What renewable energy sources does the Philippines use?
The Philippines utilizes hydro, geothermal, solar, wind, and biomass energy, with geothermal and hydro being the largest contributors.
5. What challenges and trends shape the Philippines’ energy future?
Key challenges include dependence on fossil fuels, aging infrastructure, and rising demand. Trends include growing interest in renewables and energy self-sufficiency.
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