The Philippines faces growing energy security risks as it becomes more dependent on Middle Eastern crude oil imports while the country's power grid struggles with tighter reserve margins, according to a study presented by the Philippine Institute for Development Studies (PIDS).
PIDS study declares Philippines energy insecure
Presenting the study, "How Energy Secure Is the Philippines?" PIDS Senior Research Fellow Adoracion Navarro said the country remains vulnerable despite gains in energy efficiency. “The short answer to how energy secure is the Philippines—we are insecure,” Navarro said.
The study evaluated the country's energy security across six areas: sufficiency, reliability, resilience, affordability, accessibility, and sustainability. It found that fossil fuels still supplied about 70% of the Philippines' total primary energy in 2024, while the country's energy self-sufficiency ratio continued its long-term decline to about 45%.
Middle East oil imports heighten geopolitical exposure
The report also showed that nearly all of the country's crude oil imports now come from the Middle East, increasing its exposure to geopolitical tensions and global oil price fluctuations. PIDS also flagged mounting pressure on the country's power system. As electricity demand continues to rise, reserve margins have narrowed because of aging power plants, transmission bottlenecks, and grid congestion.
In 2024, the Wholesale Electricity Spot Market suspended trading 2,401 times under red-alert conditions, underscoring the strain on the country's electricity supply. The study also found that the Philippines continues to have among the highest electricity prices in Southeast Asia, while some households still lack reliable access to electricity.
Progress in energy efficiency but risks remain
Despite these challenges, Navarro said the country has made steady progress in energy efficiency, with households and businesses using less energy for every unit of economic output. “Where the government needs more insights are our own risks and requisites, requirements, and hopefully our private sector stakeholders would be able to give insights to the government as well, like the necessary investments and policy challenges,” Navarro said.
Government aligns with PIDS recommendations
The Department of Energy (DOE) said many of the study's recommendations already align with the Philippine Energy Plan. DOE Supervising Science Research Specialist Marietta Quejada said establishing a Strategic Petroleum Reserve remains one of the government's priorities to cushion the country from global fuel supply disruptions.
She said the DOE is also studying measures to increase mandatory private-sector oil inventories and establish government-controlled fuel reserves to strengthen the country's emergency supply. The agency also continues to pursue upstream resource development, modernize the power grid, expand household electrification, and increase the share of renewable energy in the country's power generation mix to 35 percent by 2030 and 50 percent by 2040.
“We plan to institutionalize the monitoring of energy security. Actually, the main goal for the Philippine Energy Plan is energy security,” Quejada said.
Battery storage key to renewable energy shift
The Energy Regulatory Commission (ERC) said battery energy storage systems will play a key role in supporting the country's shift to renewable energy. ERC Market Operations Service Director Sharon Ocampo-Montañer said the country needs enough battery storage to capture excess solar power generated during the day and use it during peak evening demand, when red alerts are more likely.
“If we have batteries, enough batteries, we could shift this overgeneration to the evening peak. So, I think flexibility will be a big challenge when we push for more renewable energy,” she said.
Private sector calls for combined approach
From the private sector, First Gen Corp. Vice President and Head of Strategy and Planning Jay Joel Soriano said the country's energy transition should combine renewable energy expansion with the development of indigenous resources that can provide reliable, round-the-clock electricity. He cited geothermal energy as one of the Philippines' key advantages because it delivers continuous, weather-independent power while reducing reliance on imported fuel.
“By combining the state’s power to de-risk exploration, and the private sector’s speed, capital, and operational efficiency, we can transition from a vulnerable, import-dependent grid to an indigenous, secure, and green energy economy,” he said.
The discussion took place during PhilEnergy Expo 2026, where policymakers, regulators, industry leaders, and researchers discussed investments and policies needed to ensure the country's transition to cleaner energy also delivers affordable, reliable, and secure electricity for Filipinos.
