Philippines Power Market Size, Share and Forecast Trends - Growth Analysis and Outlook Report (2026-2035)

The Philippines power market reached around 123.22 TWh in 2025. The market is projected to grow at a CAGR of 4.20% between 2026 and 2035 to reach nearly 185.93 TWh by 2035.

Latest News on the Philippines Power Market (2026)

April 2026: Philippines Approves Major Solar Power Project to Boost Capacity

According to Philippine Daily Inquirer, Philippine authorities approved a major utility-scale solar power project, supporting national targets to raise the renewable energy share in the generation mix. The project includes integrated battery storage components. The development reinforces how the Philippine power market is rapidly diversifying away from coal-dominated baseload toward renewables-plus-storage configurations and signals strong investor appetite for long-duration grid infrastructure assets in Southeast Asia.

March 2026: Meralco Expands Renewable Power Procurement Through New Auctions

As reported by Nikkei Asia, Manila Electric Company expanded renewable power procurement through new competitive selection auctions, awarding contracts to solar and wind developers. The initiative supports compliance with the Renewable Portfolio Standard policy. The development underscores how distribution utilities in the Philippines are increasingly anchoring private investment in renewable generation, accelerating capacity additions and structurally reshaping the supply mix of the country's power market.

Q1 2026 Market Updates

Geopolitical Impact of Iran, US, and Israel War on the Philippines Power Market

United States: The Philippines Power Market, a key segment of the global economy, is experiencing a complex operating environment in Q1 2026 as a direct consequence of the US-Israel-Iran war. Brent crude has surged past USD 120 per barrel as the Strait of Hormuz, through which 20% of global oil and 19% of LNG transits, has been effectively closed since March 4, 2026. The Ras Tanura refinery strike, which disabled 550,000 bpd of processing capacity, and Qatar's LNG force majeure are creating structural supply disruptions. The conflict is simultaneously the most powerful strategic demand catalyst for renewable energy in decades, as every petroleum-free megawatt directly reduces military vulnerability and fuel import dependence. The conflict is simultaneously driving the strongest-ever strategic demand signal for energy diversification and resilience investment.

Iran: Iran's domestic Philippines Power sector has been effectively suspended by the conflict. US-Israeli strikes on industrial and civilian infrastructure across Tehran, Mashhad, Isfahan, and other major cities have disrupted all commercial activity. Power outages from attacks on electricity generation facilities have halted manufacturing operations, and the collapse of the commercial banking and logistics system has eliminated any residual trade flows. The broader humanitarian crisis, with over 1,900 casualties and 4,000+ civilian buildings damaged, has redirected the entire Iranian economy toward survival rather than production or consumption.

Israel: Israel's Philippines Power sector is experiencing near-term disruption from wartime conditions. Consumer spending on non-essential categories has declined as millions of Israelis regularly shelter from missile and drone alerts. Supply chain logistics are disrupted by regional airspace closures, elevated war-risk insurance premiums, and the suspension of major carrier services through the region. International business partnerships with Israeli companies have been temporarily suspended. Post-conflict reconstruction and recovery demand is expected to provide meaningful demand acceleration across affected market segments once operational conditions normalise.

Market Size & Forecast

• Market Size in 2025:  123.22 TWh
• Projected Market Size in 2035: 185.93 TWh
• Compound Annual Growth Rate (CAGR) of 2026 to 2035: 4.20%