PH–China Energy Partnership Flagged As Key To Accelerating Renewable Transition

A newly released study by People of Asia for Climate Solutions (PACS) and New Energy Nexus (NEX) underscores the potential of deeper Philippines–China cooperation to speed up the country’s shift to renewable energy, while unlocking economic and technological gains for both sides.

Titled “Bridging Opportunities: A Roadmap for China–Philippines Renewable Energy Cooperation,” the report lays out a framework for sustained collaboration between stakeholders, highlighting how joint efforts can expand clean energy access, strengthen local enterprises, and support long-term industry development.

The findings come as the Philippines pushes to raise the share of renewables in its energy mix to 35% by 2030 and 50% by 2040. Despite these targets, fossil fuels continue to dominate at roughly 78%, pointing to the scale of transformation required in the energy sector.

Energy security concerns further heighten the urgency. The country remains heavily dependent on imported fuel, with about 98% of crude oil sourced from the Middle East, according to the Department of Energy. This dependence leaves the Philippines vulnerable to global price swings 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,” said Brenda Valerio, Country Director at New Energy Nexus Philippines.

While diplomatic relations between Manila and Beijing span five decades, the study notes that collaboration in the renewable energy space has yet to reach its full potential. It argues that the focus should not be limited to increasing investments, but should instead center on building partnerships that generate shared value. These include joint ventures, domestic manufacturing linkages, skills transfer, and the strengthening of local technical capacity.

China’s renewable energy sector, with its strengths in manufacturing, technology, and large-scale rollout, is seen as a natural complement to the Philippines’ resource base and growing demand. The report points to opportunities not only in large projects but also in decentralized solutions such as rooftop solar and microgrids, which can be deployed more quickly and help ease pressure on the grid.

“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.”

At the same time, the study identifies persistent bottlenecks that continue to slow progress. These include grid integration issues, limited financing options for smaller developers, complex permitting processes, and gaps in technical standards — constraints that affect both large-scale investors and smaller market participants.

To address these challenges, the report outlines priority areas for cooperation, including the expansion of rooftop solar, deployment of off-grid systems in underserved communities, advancement of emerging technologies, integration of electric vehicles with solar infrastructure, development of technical skills, and initiatives supporting a circular economy.

It also stresses the need for more deliberate coordination among government agencies, private sector players, financiers, and Chinese technology providers. Streamlining regulatory processes, improving access to capital, and strengthening technical frameworks are identified as critical steps to accelerate project implementation.

Beyond immediate deployment, the study highlights the importance of designing partnerships that deliver long-term benefits within the Philippines. This includes ensuring that local industries, workers, and innovators are positioned to capture value as the energy transition progresses.

The analysis draws on surveys and interviews with more than 50 renewable energy developers, entrepreneurs, and industry experts from both the Philippines and China.

As the country works to rebalance its energy mix, the report concludes that well-structured international collaboration — anchored on local capacity building and diversified supply chains — can play a decisive role in advancing a more secure, affordable, and sustainable energy future.