Philippines Power Generation EPC Industry

Market Overview

The Philippines Power Generation EPC Market size is estimated at USD 410.44 million in 2025, and is expected to reach USD 572.71 million by 2030, at a CAGR of 6.89% during the forecast period (2025-2030).

• Over the medium term, factors such as increasing energy demand and upcoming and ongoing power plant projects are expected to drive the power generation EPC market in the Philippines during the forecast period.
• On the other hand, the complex and expensive nature of coal-fired and natural-gas-fired power plants, coupled with project delays, are expected to negatively impact the market.
• The Philippine government plans to phase out coal usage by 2040 and focus more on energy production from natural gas and renewable sources. This, in turn, is expected to create several opportunities for power generation EPC companies in the near future.

Key Market Trends

Conventional Thermal Power is Expected to Dominate the Market

• Conventional thermal power is the power that is generated through fossil-fuel sources, such as coal, natural gas, and oil. In 2022, nearly 77% of the electricity generated in the Philippines was from conventional thermal power.
• According to the Department of Energy (Philippines), in 2022, the Philippines had a total installed capacity of about 28.3 thousand megawatts, with over 12 thousand megawatts coming from coal-powered power plants.
• Out of the various sources of generating conventional thermal power, the majority of energy came from coal in 2022. Coal contributed approximately 46.31% of the Philippines' electricity generation. With such a huge percentage of electricity generation through fossil fuels and upcoming power plant projects, the demand for conventional thermal power is expected to increase during the forecast period.
• In March 2022, San Miguel Corporation announced that it would build two gas-fired power plants in the central Philippines for USD 1.14 billion. The construction of both plants was expected to start in the third quarter of 2022; it is expected to be completed in 2025. This development will aid in the growth of the EPC market since projects of such a large scale require extensive engineering, procurement, and construction planning.
• In February 2024, the Department of Energy of the Philippines provided a green flag for Aboitiz to expand the coal-fired power plant located in Cebu by adding another 169 MW unit to its capacity. Such type of power generation expansion will drive the country's thermal power market.
• Therefore, conventional thermal power is expected to dominate the Philippine power generation EPC market during the forecast period.

Upcoming and Ongoing Power Plant Projects are Expected to Drive the Market

• In 2022, the total electricity generation from various sources in the power sector in the Philippines was 114.4 terawatt-hours (TWh). Energy sources contributing to the country's energy generation include coal, natural gas, wind, hydro, geothermal, biofuels, and solar energy.
• According to the Statistical Review of World Energy Data, in 2022, the total electricity generation accounted for 114.4 terawatt-hours (TWh), with an annual growth rate of 4.8% compared to the previous year. With the increasing power plant projects and government focus on renewable energy generation, electricity generation is expected to increase, which, in turn, will drive the power generation EPC market in the future.
• The government has set the target to increase the power generation capacity to increase the grid's capacity, which eventually will drive the power generation EPC market. In April 2024, the Department of Energy of the Philippines announced that it expects at least 4,164.92 megawatts (MW) of power projects to be commissioned this year to enhance the country's energy infrastructure and bolster the power supply and stability of the grid.
• In July 2023, Solana Solar agreed to sign a power purchase agreement (PPA) with Kratos RES, a Philippine firm, to supply 10-20 MW of electricity from its upcoming Solana Solar Power Project in the Philippines. The project will have a total capacity of 20 MWdc, and its owners signed an agreement with the National Grid Corporation of the Philippines to connect the project to the national grid.
• Owing to the above-mentioned points, upcoming and ongoing projects are expected to drive the growth of the Philippine power generation EPC market during the forecast period.

Competitive Landscape

The Philippine power generation EPC market is moderately consolidated. Some of the key players in this market include UPC Renewables, AECOM, Black & Veatch Corp., JGC Philippines Inc., and Fluor Corporation.

Major Players

Recent Developments

• July 2023: The Department of Energy (DOE) of the Philippines announced plans to develop 68 renewable energy projects in Western Visayas, with a combined capacity of 14.24 GW. The planned projects will include 24 hydropower facilities, 17 offshore wind energy, 14 solar power, 12 onshore wind, and one will be geothermal.
• May 2023: JGC Philippines, a subsidiary of a Japanese company, JGC Holdings Corporation, was awarded Alternergy Holdings Corporation’s EPC contract for the 20-megawatt Solana Solar Farm Project. The Solana Solar Farm development will be part of Alternergy’s triple-play strategy to invest in renewable energy in five years. This will include both the Philippines and its target offshore markets.
• January 2023: San Bernardino Ocean Power Corporation (SBOPC) stated a request for proposals for the engineering, procurement, and construction (EPC) contract for the Capul Island Ocean Power Project. The project will supply renewable power using tidal instream energy conversion technology to Capul, an island in the province of Northern Samar located within the vicinity of San Bernardino Strait between the Luzon and Visayas island groups in the Philippines with a capacity of up to 1 MW.