(Yicai) April 17 -- Chinese companies account for less than 5 percent of renewable energy investment in the Philippines, compared with more than 20 percent in other Association of Southeast Asian Nations members due to regulatory friction, weak after-sales networks, and trust deficits with local partners, according to a new report.

Stronger collaboration between the Philippines and China can accelerate renewable energy deployment in the Southeast Asian country and achieve its clean energy ambitions, according to the report jointly released by People of Asia for Climate Solutions and New Energy Nexus yesterday. It can also bring "shared economic and technological benefits."

The Bridging Opportunities: A Roadmap for China–Philippines Renewable Energy Cooperation report highlights that the two markets are structurally complementary, with the Chinese firms bringing "extensive experience in technology, manufacturing, and large-scale deployment," while the Philippines offers abundant resources, an open investment framework, and 100 percent foreign ownership in green energy projects.

"The Philippines has rich renewable resources and urgent needs, while China has strong capacity and readiness," said Xiaojun Wang, executive director of PACS. "Together, we can deliver clean, safe, and affordable electricity for Philippine communities. The longer we hesitate, the more we lose."

In addition, five Chinese companies surveyed for the study rated the Philippines eight or nine out of 10 for renewable energy market attractiveness within ASEAN.

The Philippines faces acute energy pressure, with the government of Manila becoming the first to declare a national energy emergency after the Middle East conflict disrupted oil imports in late March. The country targets 35 percent renewable energy by 2030 and 50 percent by 2040, while fossil fuels still account for about 78 percent of its energy mix, the report said.

The Philippines will require about USD181 billion in clean energy investment between 2029 and 2050, equal to about 40 percent of its gross domestic product in 2024, according to the International Monetary Fund.

The report presented several near-term opportunities for the Philippines: doubling the rooftop solar photovoltaic installed capacity would translate to a market value of about USD1.6 billion; around 3.6 million households requiring new electricity connections and services in the next three years, with 27 percent of them to be energized through the installation of solar home systems, a market of about USD517 million; and the government needing about USD130 million to achieve its target to have around 7,300 electric vehicle charging stations by 2028, with only 912 stations currently operational.

The Philippine market's resource base and policy incentives are clear, noted Gan Peng, head of New Energy's country branch. The company, focused on utility-scale solar, plans to expand into rooftop solar and seeks local partners, Gan added.

Chinese auto giant BYD is deploying solar-assisted EV charging stations in the Philippines through a tie-up with AC Mobility. Local EV registrations topped 29,715 units in the first seven months of last year, exceeding the figure for the whole of 2024.

However, the report pointed out friction. For example, Philippines' One Renewable Energy Enterprise noted a Chinese partner withdrew from a 132-megawatt solar joint venture, while others said that geopolitical tensions do not affect day-to-day business decisions.

Chinese firms cited technical standards incompatibility, a thinning after-sales network, and "unreliable policy implementation" as the main deterrents to deeper engagement.

Editor: Martin Kadiev