QUEZON CITY, Philippines (Jul 2026) — Turning on the lights or filling up the tank might get even harder for Pinoys as new data shows the country is struggling to keep its energy supply stable. A study by the Philippine Institute for Development Studies (PIDS) confirms that the Philippines is energy insecure, largely because of a heavy reliance on oil from the Middle East and a power grid that is failing to keep up with demand.
Too much reliance on imported oil
During a forum at the PhilEnergy Expo 2026, PIDS Senior Research Fellow Adoracion Navarro explained that the country remains vulnerable to global supply shocks. Fossil fuels accounted for about 70 percent of the total primary energy supply in 2024, while the country’s ability to produce its own energy has dropped to around 45 percent.
Almost all of the crude oil supply now comes from the Middle East. This concentration makes the local economy sensitive to geopolitical tensions and price spikes happening thousands of miles away.
A power grid under constant strain
It is not just the fuel supply that is the problem. The local power system is facing growing pressure from aging plants and transmission bottlenecks. In 2024 alone, the Wholesale Electricity Spot Market (WESM) was suspended 2,401 times due to red alert conditions. This highlights why many households still lack reliable access to electricity despite the Philippines having some of the highest power rates in Southeast Asia.
What the government plans to do
The Department of Energy (DOE) is currently working on the Philippine Energy Plan to address these gaps. Marietta Quejada, a supervising science research specialist at the DOE, said one priority is the creation of a Strategic Petroleum Reserve. This would act as an emergency fuel buffer to protect the country against global disruptions.
The DOE is also aiming to increase the share of renewable energy in the power mix to 35 percent by 2030 and 50 percent by 2040.
The need for better storage and local resources
Generating more solar or wind power is only half the battle. Sharon Ocampo-Montañer, a director at the Energy Regulatory Commission (ERC), noted that battery energy storage systems are critical. Without enough batteries to capture excess daytime generation, the grid cannot meet peak demand in the evening when red alerts are most likely to happen.
From the private sector, Jay Joel Soriano, Vice President at First Gen Corporation, argued that the transition should focus on indigenous resources like geothermal energy. He described geothermal as a strategic advantage because it provides continuous, weather independent power that reduces the need for imported fuels.
