Stronger PH-China Collaboration Can Support Philippine Renewable Energy Ambition Amid Rising Energy Costs — New Report

16 April 2026, Manila, Philippines — A new joint study by People of Asia for Climate Solutions (PACS) and New Energy Nexus (NEX) highlights that stronger collaboration between the Philippines and China can accelerate renewable energy deployment in the Philippines and achieve its clean energy ambitions, while creating shared economic and technological benefits for both countries.

The report, Bridging Opportunities: A Roadmap for China–Philippines Renewable Energy Cooperation, identifies strategic pathways toward long-term cooperation that foster mutually beneficial partnerships between Chinese and Philippine stakeholders, support entrepreneurs, and expand access to affordable clean energy.

The report comes at a critical time as the Philippines targets 35% renewable energy by 2030 and 50% by 2040, while fossil fuels still account for roughly 78% of the energy mix. This transition has become more urgent amid the ongoing fossil fuel crisis affecting the country, which imports 98 percent of its crude oil from the Middle East, according to the Department of Energy. Continued reliance on imported fossil fuels exposes the Philippines to volatile global prices and supply disruptions.

“Today’s oil crisis is a reminder that the Philippines remains highly exposed to global fuel shocks. What this report shows is that the solution is already within reach. Scaling local solar and backing Filipino entrepreneurs to deliver it. With the right partnerships, we can accelerate deployment while building domestic capability, jobs, and more affordable energy for households and businesses,” says Brenda Valerio, Country Director at New Energy Nexus Philippines.

While diplomatic ties between the Philippines and China span five decades, collaboration in renewable energy remains limited. The study finds that the opportunity is not simply in increasing capital flows, but in structuring partnerships that drive shared growth, including joint ventures, local manufacturing partnerships, knowledge transfer, and technical capacity development that anchor value within the Philippines.

Chinese renewable energy companies bring extensive experience in technology, manufacturing, and large-scale deployment. The study finds that collaboration should expand to distributed and community-based solutions such as rooftop solar and microgrids, which can be deployed faster and help address grid constraints.

“This can be a perfect match. The Philippines has rich renewable resources and urgent needs, while China has strong capacity and readiness. Together, we can deliver clean, safe, and affordable electricity for Filipino communities,” says PACS Executive Director Xiaojun Wang. “The longer we hesitate, the more we lose.”

The report shows that implementation challenges persist, particularly in areas such as grid integration, financing access for smaller players, permitting processes, and technical standardization, issues that affect both large developers and small enterprises.

The report identifies six priority pathways for collaboration, including rooftop solar expansion, off-grid solutions for remote communities, emerging technologies, EV–solar integration, technical capacity development, and circular economy initiatives. It also calls for closer collaboration between government, local developers, financiers, and Chinese suppliers to streamline permitting, improve financing access, and strengthen technical standards. Such collaboration can also support regional expansion opportunities through joint ventures and innovation partnerships that build long-term regional value.

As the Philippines works toward increasing the share of renewables in its energy mix, the report argues that collaboration, when designed to empower local innovators and diversify supply chains, can accelerate progress while ensuring that economic value and expertise are built domestically.

Read and download the full report: https://www.paaacs.org/ReportCenter/Bridging_Opportunities

New Energy Nexus (NEX) is an international organization that strives towards a 100% clean energy economy for 100% of the population. Since 2019, our programs in the Philippines have supported over 1,000 entrepreneurs through accelerators, training, and networking opportunities. We have supported over 90% of the country’s clean energy and climate startups across all regions to scale and innovate on their solution