A newly released global index has placed the Philippines in its 'early-stage adoption' group, finding that grid constraints, limited investment and gaps in policy implementation are slowing progress across transport, industry and buildings. The findings were published on October 27, 2026, by the We Mean Business Coalition.
The Electrification Competitiveness Index, developed by the We Mean Business Coalition with support from RMI, evaluated 16 countries using 52 indicators spanning grids and power markets, road transport, industry, buildings, and cross-cutting readiness. The Philippines recorded a score of 43% for enabling conditions and 39% for deployment, grouping it with Indonesia and South Africa in the index's group classified as 'early-stage adoption.'
Power Grid Funding Falls Short of Country Peers
The We Mean Business Coalition said the Philippines has enacted broad electricity market reforms — including a wholesale electricity market and clean power procurement mechanisms — but has not yet succeeded in converting those reforms into expanded physical infrastructure.
According to the coalition's findings, grids and power markets scored 17 out of 30 for enabling conditions but only 10 out of 30 for deployment. Clean electricity represents just 23% of total generation, and grid investment sits below 0.4% of GDP — well under the 16-country average of 0.65% of GDP. The coalition's release also noted recent red and yellow alert episodes on the Visayas power grid, triggered by plant outages and electricity shortages.
EV Targets Exist, but Charging Access Remains Uneven
In the road transport sector, the Philippines scored 6 out of 20 for deployment and 5 out of 20 for enabling conditions. The We Mean Business Coalition acknowledged that the country has set ambitious electric vehicle targets and introduced incentives for both adoption and domestic manufacturing.
Despite this, charging infrastructure is largely confined to urban centres, and electrification of public transport and freight has made limited headway. The index singles out affordable financing for jeepneys, tricycles, and other public utility vehicles as a priority.
Industry Policies Disconnected from Broader Development Strategy
The industry sector received a score of 13 out of 20 for deployment and 8 out of 20 for enabling conditions. According to the We Mean Business Coalition, fiscal incentives for industrial energy efficiency and minimum performance standards for electrical equipment are already operative.
Even so, the coalition said industrial electrification policies lack sufficient integration with the country's wider industrial development plans, a gap it described as a constraint on investment in electric technologies.
Building Standards Undermined by Inconsistent Enforcement
The buildings sector posted the index's lowest deployment score for the Philippines at 5 out of 20, against an enabling conditions score of 10 out of 20. The We Mean Business Coalition found that while national green building codes and energy efficiency requirements provide a foundation for progress, uneven enforcement and inadequate training for local officials are curtailing their practical effect.
Coalition's Energy Director Urges Translation of Policy into Projects
Molly Walton, Director of Energy at the We Mean Business Coalition, said the country had laid meaningful groundwork in policy, 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 Outlines Key Steps for the Philippines
The We Mean Business Coalition's index lists several recommended priorities for the Philippines: speeding up grid development and clean electricity connections, reinforcing electricity market competition, and broadening access to finance for electric technologies. It also calls for more consistent implementation of building standards, resolution of skilled electrical worker shortages, tighter coordination across energy, transport, and industrial policy, and the adoption of clearer electrification milestones.
Philippines' Struggles Reflect a Worldwide Pattern
The coalition noted that the Philippines' situation mirrors a global implementation gap identified across the full set of countries assessed. The median Enablers score across all 16 nations stood at 67%, against a median Deployment score of just 45%, with 14 of the 16 countries scoring higher on enabling conditions than on actual deployment.
China leads the index in electrification deployment, while the United States, according to the coalition, risks losing ground due to federal policy reversals and grid bottlenecks. France and Spain combine strong policies with solid on-the-ground progress, whereas the United Kingdom, Germany, Italy, and Poland have not yet translated their policy frameworks into equivalent results.
We Mean Business Coalition CEO María Mendiluce 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 produced by the We Mean Business Coalition with support from RMI. It covers 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 — evaluated across 52 indicators. The full report is available through the We Mean Business Coalition website.
Photo courtesy of We Mean Business Coalition
Source: We Mean Business Coalition