Almost all respondents in both countries expect their own operations to be largely electrified before 2035, according to a survey by E3G, We Mean Business Coalition and the Global Renewables Alliance.
The survey, which gathered responses from 2,000 corporates across 18 countries, found that most companies expect to have replaced fossil-fuelled equipment with electric alternatives by then.
Businesses in both markets see electrification as a way to cut long‑term operating costs and shield themselves from volatile fossil fuel prices, helping them stay competitive even as governments lag.
That concern shows up in the numbers, whereby 83 per cent of Indonesian executives want the government to ramp up investment in grid capacity and connectivity, closely followed by 82 per cent of Filipino executives who say the same. At the same time, 89 per cent of business leaders in the Philippines say current policies are moving too slowly to support the pace of electrification companies need.
“The main benefit of electrifying our business is the reduction in operating costs in the long run, especially with the use of solar panels which reduces our monthly bill. In addition, our power supply for freezers and lighting systems becomes more reliable and stable, which is critical in maintaining the quality of the products we sell,” a senior executive from the Philippines’ wholesale and retail sector said in the study.
About 83 per cent of Indonesian executives want the government to ramp up investment in grid capacity and connectivity, closely followed by 82 per cent of Filipino executives who say the same. Globally, among the main policy barriers executives perceived included insufficient government incentives or support, followed by insufficient government investment to update the grid. Image: Hannah Fernandez/ Eco-Business, Source: Powering Up Business Global Report
This warning comes despite the Philippines’ ambitious goal of lifting renewables’ share of the power mix to at least 35 per cent by 2030 and 50 per cent by 2040.
The country is also is rapidly expanding its renewables pipeline through green auctions and more liberal foreign investment rules, but still plans new gas capacity to secure near term supply.
Yet a record 92 per cent of executives — the highest share among all countries surveyed — say the Philippines’ heavy reliance on imported fossil fuels exposes businesses to price volatility and geopolitical risks, with 80 per cent warning the country is falling behind in the electrification race. Although Philippine firms see growth opportunities in areas such as low carbon manufacturing, 78 per cent say they would consider relocating overseas if government support for electrification falls short.
Indonesia faces a similar challenge. While the country’s energy policy places growing emphasis on renewable power, its latest 10-year plan from state utility Perusahaan Listrik Negara (PLN), forecasts renewables meant to supply just over a third of the country’s electricity by 2034, more than double today’s share of about 16 per cent.
What is missing, the analysis noted, is a clear roadmap for how quickly electricity demand — particularly in factories and other businesses — is expected to grow as they switch away from fossil fuels.
Across all countries, the main policy barriers executives cite are insufficient government incentives or support (43 per cent), followed by insufficient public investment to upgrade the grid (41 per cent).
While business leaders are broadly optimistic about their electrification trajectory, the report noted they are blunt about the consequences of these barriers: half say they have already delayed investments or projects to electrify their processes, and 8 per cent say they have not invested at all as a result.