Energy

The Covid-19 pandemic hit the Philippines’ consumption-driven economy hard, with forecasts from the IMF suggesting that real GDP could contract by as much as 9% in 2020. Strict lockdowns took a heavy toll on the energy sector in the form of a steep drop in demand for both electricity and fuel, yet local power providers took steps to ease the financial impact on customers by lowering rates and extending payment windows. In a positive sign for the sector’s longer-term development, interest was sustained in oil and gas exploration activities and midstream infrastructure investment during the pandemic. Beyond the health crisis, the renewable energy and natural gas segments present standout opportunities for the coming years as the Philippines looks to meet rising energy demand and alleviate pressure on the national grid.