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Original Research
Investment Challenges of Renewable Energy in the Philippines
Business Fora: Business and Allied Industries International Journal
Volume 6 | Issue 2 | 2026 | 55 – 68
Annette Manansala-Rafael
Doctor of Business Administration, Polytechnic University of the Philippines – OUS, Sta. Mesa, Manila, Philippines
Article History:
Initial submission: 26 August 2025
First decision: 23 August 2025
Revision received: 14 January 2026
Accepted for publication: 20 January 2026
Online release: 26 January 2026
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Abstract
Accelerating Renewable Energy (RE) investments is crucial for the Philippines to achieve environmental sustainability, energy security, and inclusive economic growth. Despite of the Philippines’ vast RE potentials and policy progress, investors face numerous challenges. This study investigates the multifaceted challenges hindering RE investment and development in the Philippines. It proposes strategic solutions to accelerate the country’s energy transition from fossil-based to renewable energy sources. Using an exploratory mixedmethods approach, the study surveyed RE investors and developers to collect qualitative data on perceived challenges and key factors influencing investment decisions. This process resulted in the development of the Renewable Energy Acceleration for Sustainability (RE-AcceS) model. Findings reveal that while environmental advocacy is a primary motivator for investment, progress is constrained by significant and interconnected barriers across seven key areas: regulatory, financial, market, human resource, technological, resource, and social acceptance. The research identifies specific issues, such as complex permitting processes, high upfront costs, and grid instability, as major obstacles. The study proposes a comprehensive set of strategies, including streamlining regulations through the full implementation of the Energy Virtual One-Stop Shop (EVOSS), expanding access to green financing and incentives, modernizing grid infrastructure, and integrating RE education into curricula to build a skilled and future-ready workforce. The RE-AcceS model, built on a multistakeholder, integrated approach, illustrates how de-risking investments and enhancing enabling systems can simultaneously drive progress. The study concludes that addressing the RE investment challenges is crucial for the Philippines to achieve its goal of a 50% RE share in the energy mix by 2040, ultimately ensuring energy security, environmental resilience, and sustainable economic growth.
Keywords: renewable energy; investment challenges; sustainable development; de-risking investments; environmental advocacy; energy transition
Cite this article
APA (7th edition)
Rafael, A. M. (2026). Investment challenges of renewable energy in the Philippines. Business Fora: Business and Allied Industries International Journal, 6(2), 53–65. https://doi.org/10.62718/vmca.bf-baiij.6.2.SC-1125-006.docx&action=default&mobileredirect=true)
Author contributions
– (Not applicable).
Funding
This research received no external funding.
Conflict of interest
The author declares no conflict of interest.
Institutional ethics review statement
This study involved human respondents; however, formal ethical approval was not sought from the authors’ institution. The authors affirm that participation was voluntary, informed consent was obtained, and confidentiality of responses was strictly maintained. No procedures were undertaken that posed risk or harm to the participants.
Data availability statement
All data supporting the findings of this study are included within the manuscript and its supplementary materials.
Declaration of generative AI use/assistance
AI-assisted language editing was performed; authors reviewed and approved all content.
Acknowledgement
The researcher extends her heartfelt thanks to everyone who supported her throughout this academic journey, stating that it wouldn’t have been possible without their constant encouragement and confidence in her abilities. First and foremost, she expresses profound gratitude to the Almighty God for granting her the wisdom, strength, and perseverance needed to complete the research study. To her husband, Bong, she acknowledges his steadfast love, boundless patience, and unwavering support as her constant source of strength and inspiration. She also thanks her daughter, Reanne, whose witty spirit made every challenging moment bearable and truly meaningful. This achievement is lovingly dedicated to the cherished memory of her late parents, Manding and Luming, whose guiding light and enduring love continue to inspire her every day. She also expresses sincere appreciation to her siblings namely Rose, Loys, James (+), Marlyn, Maricel, Jeff, and Ruby as well as to her nieces, nephews, their little angel Tey-Tey, and her inlaws for their constant encouragement and unwavering belief in her.
Publisher’s disclaimer
The views expressed in this article are those of the authors and do not necessarily reflect the views of the publisher. The publisher disclaims any responsibility for errors or omissions.