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Renewable energy projects accounted for nearly half of the Philippines’ investment approvals in early 2026, as the government ramps up efforts to secure energy supply amid global disruptions triggered by conflict in the Middle East.
Data from the Board of Investments (BOI) showed that approved projects reached ₱47 billion from January to February, with 47.7 percent, amounting to ₱22.4 billion, allocated to the energy sector, led largely by renewable energy developments.
Central Luzon Leads
Central Luzon emerged as the top investment destination during the period, attracting ₱21.5 billion in approved projects. A significant portion of this was driven by the ₱16.4-billion solar power project of Cleanergy 2 Power Inc., underscoring the region’s growing role in the country’s energy transition.
Other regions followed at a distance, with Central Visayas securing ₱8.2 billion, the National Capital Region ₱4.5 billion, Ilocos Region ₱3.7 billion, and Mimaropa ₱2.9 billion.
The BOI approved 35 projects in the first two months of the year, a sharp increase from just eight approvals in the same period in 2025, reflecting a surge in investor activity across sectors.
Energy Security
The strong pipeline of renewable energy investments comes as the Philippines grapples with heightened energy security risks. On March 24, President Ferdinand Marcos Jr. declared a yearlong state of national energy emergency through Executive Order No. 110, following an oil supply crunch linked to the Iran war that began on Feb. 28.
Trade Secretary and BOI Chair Cristina Roque emphasized that the influx of renewable energy investments is critical in addressing these vulnerabilities.
“The significant investments in renewable energy will play a crucial role in strengthening our energy security amid current challenges, while accelerating the country’s transition to a more sustainable and resilient energy future,” Roque said.
Energy projects significantly outpaced other sectors in BOI approvals. Accommodation and food service activities accounted for ₱7.6 billion (16.1 percent), followed by real estate with ₱6.4 billion (13.7 percent), manufacturing with ₱5.3 billion (11.4 percent), and transportation and storage with ₱3 billion (6.4 percent).
Foreign Investments Surge
Foreign investment approvals posted a dramatic increase, rising more than ninefold to ₱3.1 billion from ₱300 million a year earlier. Singapore emerged as the top source, contributing ₱1.8 billion or over half of the total.
Other key contributors included China, Australia, and the United States, alongside smaller shares from other countries.
BOI Investments Promotion Services Executive Director Evariste Cagatan attributed the rise in approvals to improved investor sentiment and policy support.
“The increase in BOI-approved projects reflects strong investor confidence in the country’s evolving investment environment, driven by CREATE MORE and our efforts to build a greener and more competitive economy. These investments will help spur regional growth and create more jobs for Filipinos,” Cagatan said.
The CREATE MORE Act, enacted in November 2024, enhanced fiscal incentives to attract investments, improve competitiveness, and support job creation.
Renewables Dominate Long-Term Pipeline
Renewable energy has consistently led BOI approvals over the past three years, driven by the capital-intensive nature of such projects. It also dominates the agency’s “green lane” initiative, which fast-tracks permits for strategic investments.
As of end-2025, renewable energy projects comprised ₱5.21 trillion, or 85.27 percent, of the ₱6.11 trillion total under the green lane program. These include 179 projects projected to generate nearly 250,000 jobs.
However, most of these projects remain in early stages, with a majority still in predevelopment. Despite expectations that approvals in 2026 would shift toward sectors such as mineral processing, infrastructure, and high-value manufacturing, renewable energy continues to command a significant share of investment inflows.
Roque noted that while energy remains dominant, other emerging sectors are also gaining traction, including electric vehicles, semiconductors, smart manufacturing, high-tech agriculture, and data centers.
Investment Momentum Builds
In February alone, the BOI approved ₱36.5 billion worth of investments across 21 projects, up 27.2 percent from the previous year. Renewable energy again led the month’s approvals, accounting for ₱20.4 billion or 55.9 percent of the total.
“The strong increase in BOI-approved projects reflects growing investor confidence in the Philippines and the continued inflow of high-value investments that support our economic priorities,” Roque said.
While the Department of Trade and Industry has lowered the BOI’s 2026 investment approval target to ₱1 trillion, down from previous years, the early surge in renewable energy projects signals sustained momentum in the country’s push toward energy resilience and sustainability.
Source:
https://www.pna.gov.ph/articles/1272327
https://business.inquirer.net/583577/renewables-top-january-february-investment-approvals