Are solar micro-grids a solution to the Philippines' energy crisis?

The Philippines is facing an energy crisis, and solar micro-grids are a part of the mix of solutions needed to supply our nation’s power. “In the Philippines, almost 1.3 million households could face power outages in 2023 due to a lack of funding from the National Power Corporation,” Energy Tracker Asia reports.

Does the Philippines have a strong energy supply?

A significant amount of the Philippines’ primary energy supply is still fossil fuel-based, making the country vulnerable to rising energy costs and market volatility while the energy production is at the same time CO2 intensive.

How much energy will the Philippines have by 2040?

The Energy Department projects that electricity demand will increase by 6.6% every year until 2040. At the same time, the Philippines’ power generation mix is being transitioned to have 35% renewable energy by 2030 and 50% by 2040.

How much solar power does the Philippines need?

To align with the Philippines’ 35% renewable target, it should install 18 GW of solar capacity, 63% more than the 11 GW target set out in the country’s Power Development Plan (PDP). To support renewables, 6 GW of battery energy storage is needed by 2030.

Can renewables meet the growing power demand in the Philippines?

Wärtsilä’s modelling of the power system of the Philippines’ largest island, Luzon, shows that a combination of renewables plus flexibility, provided by balancing engines and energy storage, can reliably meet the region’s increasing power demand.

How will solar energy impact the Philippines?

There are also efforts to create expansive solar farms in the Luzon region to help the country transition to reusable energy. By 2030, the Philippines is projected to add 17,809 MW of solar capacity. The solar energy market in the Philippines could record a compound annual growth rate (CAGR) of 15 percent during the 2022-2027 period.