The Philippines has been placed in the 'early-stage adoption' group of a new global electrification index, with grid constraints, below-average investment, and inconsistent policy implementation identified as the primary obstacles slowing progress across transport, industry, and buildings, according to the We Mean Business Coalition.
The Electrification Competitiveness Index, published on October 27, 2026, assessed 16 countries across 52 indicators and found the Philippines scoring 43% for enabling conditions and 39% for deployment — placing it in the index's 'early-stage adoption' group alongside Indonesia and South Africa.
Grid Underinvestment Drags Down Deployment Scores
According to the We Mean Business Coalition, the Philippines has introduced comprehensive electricity market reforms — including a wholesale electricity market and mechanisms for procuring clean power — but has struggled to translate those policies into physical infrastructure on the ground.
The index found that grids and power markets scored 17 out of 30 for enabling conditions but only 10 out of 30 for deployment. Clean electricity accounts for just 23% of generation, while grid investment remains below 0.4% of GDP, compared with an average of 0.65% of GDP across the 16 countries assessed.
The findings come amid renewed concerns over electricity security in the Philippines, with the Visayas power grid placed under red and yellow alerts recently following power plant outages and shortages of available electricity, according to the coalition's release.
Electric Vehicle Push Hampered by Urban-Concentrated Charging Network
On road transport, the Philippines scored 6 out of 20 for deployment and 5 out of 20 for enabling conditions. The We Mean Business Coalition said the country has set ambitious electric vehicle targets and introduced incentives supporting adoption and domestic manufacturing.
However, charging infrastructure remains concentrated in urban areas, while electrification of public transport and freight remains limited. The index specifically identifies affordable financing for jeepneys, tricycles, and other public utility vehicles as a priority.
Industrial Electrification Policies Not Linked to Broader Development Plans
Industry scored 13 out of 20 for deployment and 8 out of 20 for enabling conditions. The coalition noted that fiscal incentives supporting industrial energy efficiency and minimum performance standards for electrical equipment are already in place.
Despite these measures, the We Mean Business Coalition said industrial electrification policies are not sufficiently integrated with wider industrial development strategies, which it said is limiting investment in electric technologies.
Building Codes in Place but Enforcement Remains Inconsistent
The buildings sector recorded the lowest deployment score, with 5 out of 20, against an enabling conditions score of 10 out of 20. National green building codes and energy efficiency requirements provide a policy foundation, but the index found that uneven enforcement and insufficient training for local officials are limiting their impact.
Coalition Director Calls for Investment to Match Policy Commitments
Molly Walton, Director of Energy at the We Mean Business Coalition, said the Philippines had made meaningful progress in establishing a policy framework, adding that the priority now is to turn those policies into investment and projects on the ground.
"The Philippines has made important progress in establishing the policies needed for electrification, particularly through electricity market reforms and support for electric transport. But businesses and households need reliable electricity networks, access to affordable clean power and infrastructure that allows them to switch from fossil fuels."
"The priority now is to turn those policies into investment and projects on the ground. Accelerating grid development, making it easier for clean electricity projects to connect and expanding access to finance for electric technologies would help businesses and consumers benefit from electrification. Stronger industrial policies and investment in workforce skills would also help the Philippines build domestic industries, improve energy security and reduce exposure to imported fossil fuels."
— Molly Walton, Director of Energy, We Mean Business Coalition
Index Recommends Grid Acceleration, Skills Investment, and Stronger Policy Coordination
The We Mean Business Coalition's index identifies several priorities for the Philippines: accelerating grid development and connections for clean electricity, strengthening electricity market competition, and expanding access to finance for electric technologies.
It also recommends improved implementation of building standards, a resolution of shortages of skilled electrical workers, stronger coordination between energy, transport, and industrial policies, and the establishment of clearer milestones for electrification progress.
Global Implementation Gap Mirrors Philippines' Challenges
The Philippines' experience reflects a broader global trend documented by the index. The We Mean Business Coalition found a sizeable global implementation gap, with the median Enablers score across all 16 countries at 67%, compared with just 45% for Deployment. Fourteen of the 16 countries assessed scored higher on enabling conditions than on actual deployment.
China leads the index on electrification deployment. The United States, by contrast, risks losing momentum amid federal policy reversals and grid bottlenecks, according to the coalition. France and Spain combine strong policies with progress on the ground, while the United Kingdom, Germany, Italy, and Poland have yet to translate their policy frameworks into comparable results.
María Mendiluce, CEO of the We Mean Business Coalition, said in the release: "Electrification is becoming a test of economic competitiveness and energy security. Those countries like China, France and Spain with strong deployment and enablers show what can happen when investment, infrastructure, industrial strategy and demand move together. Elsewhere, governments have put many of the right policies in place, but businesses still need affordable clean electricity, grid connections and the confidence to invest."
About the Index
The Electrification Competitiveness Index was developed by the We Mean Business Coalition with support from RMI. It assesses 16 countries — Australia, Brazil, China, Ethiopia, France, Germany, India, Indonesia, Italy, the Philippines, Poland, South Africa, South Korea, Spain, the United Kingdom, and the United States — across 52 indicators covering grids and power markets, road transport, industry, buildings, and cross-cutting readiness. The full report is available at the We Mean Business Coalition website.
Photo courtesy of We Mean Business Coalition