Monday, 26 May 2025, 12:44 pm

    Domestic solar and storage industry poised for growth in 2025

    The Philippine Solar and Storage Energy Alliance (PSSEA) is optimistic about the continued growth of solar and energy storage projects in the country, driven in part by the green energy auctions (GEA) organized by the Department of Energy (DOE). Given the third, fourth, and fifth rounds of the GEA this year, PSSEA president Jose Rafael Mendoza forecasts 2025 to be a pivotal year for the renewable energy sector.

    A key highlight of the upcoming auctions is the inclusion of integrated renewables and energy storage systems (IRESS), that Mendoza sees as a step forward in evolving the country’s energy landscape. GEA-4 alone will feature over 8,200 megawatts of renewable energy projects, including IRESS, which are expected to significantly contribute to the nation’s electricity supply.

    However, despite the optimism, PSSEA acknowledges challenges hindering the industry’s expansion. For utility-scale solar projects, grid interconnection limitations and difficulties in land consolidation remain significant hurdles. On the consumer side, Mendoza pointed out that the adoption of rooftop solar is slowed by a lack of trust in the technology, installers, and service providers, though improvements in local government processes, like one-stop shops for net-metering applications, are seen as key solutions.

    Additionally, the industry faces a growing human capital challenge. With increasing demand for skilled labor, engineers, and project developers both locally and internationally, PSSEA stresses the importance of building a strong talent pipeline to avoid a brain drain and ensure the country can meet its renewable energy goals.

    As of November 2024, solar power capacity in the Philippines reached 2,551 MW, or 8.6 percent of the total 26,697 MW installed capacity across all technologies, with energy storage systems reaching 634 MW and rooftop solar installations for own-use at 116 MW.

    PSSEA, which unites key stakeholders in the solar energy industry, remains focused on addressing these challenges while capitalizing on the growing potential of solar and storage technologies to meet the country’s energy needs.

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