Financing Community-Based, Renewable, and Distributed Energy Resources in the Philippines

Abstract

Progress in renewable energy (RE) and distributed energy resources (DERs) is a key development opportunity for the human development of Filipino communities. The Philippines presents a compelling example for mobilizing finance toward RE and DER in low-and middle-income countries due to its centralized energy grid, archipelagic geography, energy access disparities, and robust existing energy policy. This project aims to identify the gaps and challenges gridlocking DER and RE projects in the Philippines and propose opportunities to address those challenges through policy, community engagement, and financing mechanisms. While substantial literature exists on the state of the Philippine energy system, the majority employs a top-down analytical approach that limits the inclusion of many on-the-ground stakeholders’ experiences. The study team addresses this research gap through a sequence of semi-structured interviews analyzed for key themes using inductive coding methods. Final results indicate that while a robust framework of national policies exists to spur renewable DER deployment, a more targeted approach is needed to ensure that local actors—including government units, rural banks, and electric cooperatives—can better coordinate an equitable energy transition. This report outlines strategies designed to catalyze further regional, national, and international investment into Philippine renewable energy systems and improve the procedural inclusion of all stakeholders in energy project implementation.