The Philippines and China could benefit from a wealth of untapped potential in renewable energy cooperation, capitalizing on the Philippines' natural resources and Chinese know-how, according to a recently released report.

By partnering with China on renewables, the Philippines could fast-track its shift to clean energy and unlock a strategic market for Chinese companies, creating a "win-win" scenario, the report said.

The Bridging Opportunities: A Roadmap for China–Philippines Renewable Energy Cooperation report was compiled and released in April by People of Asia for Climate Solutions, a Manila-based NGO, and global nonprofit New Energy Nexus.

The report comes as the Philippines strives to raise the share of renewables in its energy mix to 35 percent by 2030 and 50 percent by 2040, while fossil fuels continue to dominate at roughly 78 percent.

The country's energy transition has become more urgent amid the ongoing fossil fuel crisis, as it remains heavily reliant on crude oil imports, the study said.

The Philippines imports 98 percent of its crude oil from the Middle East, according to the country's Department of Energy.

Today's oil crisis is a reminder that the Philippines remains highly exposed to global fuel shocks. What this report shows is that the solution is already within reach, said Brenda Valerio, country director for the Philippines at New Energy Nexus.

"With the right partnerships, we can accelerate deployment while building domestic capability, jobs, and more affordable energy for households and businesses," she said.

While diplomatic ties between the Philippines and China span five decades, collaboration in renewable energy remains limited. The study found that the opportunity is not simply in increasing capital flows, but in structuring partnerships that drive shared growth, including joint ventures, local manufacturing partnerships, knowledge transfer and technical capacity development that anchor value within the Philippines.

Valerio said the Philippines has abundant renewable resources from solar and wind to geothermal. With clear policy direction for energy transition, the country's electricity demand continues to grow, creating a strong market for new capacity.

Despite this, however, she pointed out several important concerns that make international companies, especially those from China, hesitate to engage in the country's renewable energy development.

She noted policy inconsistency as the most frequently cited challenge."Not necessarily the absence of policies, but gaps in implementation. So processes can be slow or unclear, which creates uncertainty for investors," she said.

She added that the complexity of permitting and regulatory requirements — which can lengthen project timelines and increase costs — along with infrastructure constraints, are also factors to blame.

Chinese renewable energy companies bring extensive experience in technology, manufacturing, and large-scale deployment. The study found that collaboration should expand to distributed and community-based solutions such as rooftop solar and microgrids, which can be deployed faster and help address grid constraints.

"This can be a perfect match. The Philippines has rich renewable resources and urgent needs, while China has strong capacity and readiness. Together, we can deliver clean, safe and affordable electricity for Filipino communities," said Wang Xiaojun, executive director at People of Asia for Climate Solutions.

"The longer we hesitate, the more we lose," he said.