The increase in the use of renewable energy in the Philippines could reduce electricity prices by up to 24% by 2029, according to the Independent Electricity Market Operator of the Philippines (IEMOP).
In the first half of 2025, spot power prices dropped to P4.14 per kilowatt-hour (kWh), the lowest since the end of the pandemic. The price was higher last year at P5.58/kWh.
Due to cheaper renewable energy, the use of more expensive plants has decreased this year. IEMOP expects that plans to increase green energy capacity will help reduce the price by P0.90–P1.32 per kWh by 2029.
In addition, natural gas-fired power plants have also helped stabilize supply. The Philippines, once the region's most coal-dependent country, is now expected to see its coal-fired electricity usage decline for the first time since 2008 due to increased LNG generation.
However, it does not immediately mean that electricity bills for residents will decrease, even if spot prices decrease. For example, MERALCO increased rates this month due to high contracts with some power suppliers. Despite this, more retailers are buying from the spot market to reduce costs.
