Maybank Investment Bank has maintained a neutral stance on the renewable energy (RE) sector in the Philippines despite the positive government support as execution has lagged and RE players are navigating near-term headwinds with execution hurdles.

The research house said in a recent note that despite supportive policies in the country, RE capacity additions only began to outpace non-RE in 2023.

“Delays in project rollouts and the lag in earnings delivery temper near-term optimism,

“However, with over 150GW of potential projects in the pipeline and the Philippines ranked 2nd globally for RE investment attractiveness, the long-term opportunity remains compelling,” it noted.

Philippine government is targeting RE to make up 35 percent of the country’s generation mix by 2030, rising to 50 percent by 2040 to 2050.

Over 151GW of potential capacity has been identified and made possible through contracting mechanisms like the green energy auction program and consumer-based options such
as the green energy option.

Additionally, policies continue to encourage RE development through tax holidays, duty-free imports, and guaranteed offtake, keeping the Philippines one of the most attractive markets for renewable investment.

“We maintain a neutral sector view, awaiting clearer and better execution of RE projects before turning more constructive,” it said.

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