Philippines to Expand Hydropower for Grid Stability and Renewable Energy

Jul 26, 2026

70 min

Jul 26, 2026 22:30

Philippines: Gigawatt-scale hydropower to help stabilise electricity grid, boost renewables for AI, chips — and cut coal

## Major Hydropower Expansion

The Philippines is set to significantly boost its hydropower capacity with plans to develop 2 gigawatts (GW) of pumped-storage hydropower. This initiative aims to stabilize the Luzon electricity grid and enhance the country's renewable energy resources.

## Current and Future Capacity

Currently, the Philippines has 1.19 GW of hydropower from existing dams. The Department of Energy reports that there are 20 new hydropower projects in the pipeline, which could potentially add up to 12.74 GW. The country has an estimated untapped hydropower potential of 13,097 megawatts (MW).

## Reducing Coal Dependence

The move towards hydropower is part of a broader strategy to reduce reliance on coal, which currently accounts for about 60% of the Philippines' power generation. The government aims to triple renewable energy capacity by 2030, requiring an additional 14,900 MW, including 8,700 MW from hydropower.

## Key Projects

Significant projects include the 600 MW Wawa facility in Rizal and the 1,400 MW Ahunan project in Laguna, both expected to be completed by 2030. These projects are part of a larger effort to meet the growing electricity demand, particularly in high-tech industrial zones.

## Challenges and Opportunities

While the Philippines has abundant water resources, challenges such as environmental concerns and community impacts need to be addressed. However, the development of pumped-storage hydropower is seen as a crucial step in modernizing the energy system and reducing greenhouse gas emissions.

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