(Second of two parts)
In brief:
• Energy providers must evolve from traditional utility roles to offer customized, flexible solutions that meet the specific needs of businesses, particularly in the context of sustainability and digital transformation.
• The Philippine energy market is seeing increased competition and innovation, with companies seeking energy-as-a-service contracts and advanced digital tools to enhance efficiency and support sustainability goals.
• Strategic partnerships and a deep understanding of diverse business energy needs are essential for energy providers to create value, drive economic prosperity, and support the transition to renewable energy sources in the Philippines.
Businesses are increasingly recognizing the critical role that energy plays in their operations, prompting a shift away from traditional utility services towards more flexible and customized solutions. As sectors such as technology and automotive innovate within the energy market, energy providers must adapt to meet the diverse and complex needs of their clients.
With the government and private sector committed to a greener future, energy providers have a unique opportunity to redefine their services, enhance their offerings, and support businesses in achieving their energy objectives while navigating the challenges of a changing energy climate.
In the first part of this article, we discussed the significant transformation of the energy landscape driven by rising electricity demand from businesses, highlighting the need for energy providers to adapt their strategies to meet complex client needs and capitalize on opportunities for sustainable and reliable energy solutions.
In this second part, we discuss the evolving role of energy providers as they seek to enhance their offerings and better serve business clients by focusing on customized solutions, digital innovation, and strategic partnerships that align with the growing demand for clean energy and operational flexibility.
THE EVOLVING ROLE OF ENERGY PROVIDERSAs businesses recognize the importance of energy in their operations, they are seeking more than just traditional utility services that could provide flexibility and customization based on their specific needs. Energy providers must adapt to this changing landscape by broadening their definitions of service. Companies from various sectors, including technology and automotive, are entering the energy market with innovative solutions. For instance, a Swedish EV manufacturer has implemented an app that streamlines EV charging management for customers across Europe.
In the Philippines, developers will need to develop cutting-edge solutions that fit the current advancements of the country. Addressing the need for automation and streamlining of energy-related processes would give businesses the ability to modify their chosen solutions not only to fit their unique energy needs but also to the energy climate of the country. Aside from revamping and adding offerings, the upskilling of the workforce will also be required.
Many organizations plan to upskill existing employees, hire new specialists, and partner with external experts to navigate the complexities of energy management. This shift presents a significant opportunity for energy providers to demonstrate their value and support businesses in achieving their energy objectives.
Findings from the EY Navigating the Energy Transition research program, which surveyed economies at different stages of energy transition, underscores the need for energy providers to focus on consumer-centric strategies such as customized energy solutions, energy efficiency consulting, and digital tools and analytics.
For the Philippines, a consumer-centric energy provider fulfills the following roles:
• Choice provider: Some of the conglomerates or prominent energy producers are already in the retail market. The country’s Retail Competition and Open Access (RCOA) mandate provides competition and options for the contestable customers. They have the power to choose a tariff that aligns with their preferences whether on cost, risk, or sustainability objectives.
• Efficiency partner: Aside from conglomerates and energy producers venturing into retail electricity supply, some of them are also in the energy efficiency space. Usually, they provide consultancy services to businesses for energy savings, but to fully embody the evolving landscape, they can offer Energy-as-a-Service contracts that bundle lighting, HVAC optimization, high‑efficiency motors, and ISO 50001-compliant energy management systems.
• Digital optimizer: Advanced metering infrastructure and other digital tools could be part of the consumer-centric initiatives that the energy providers may offer. It will support the retail aggregation program of the Department of Energy (DoE).
More than the savings and digitization, sustainability is also a top priority for businesses, with nearly all surveyed organizations setting goals to increase their use of carbon-free energy. However, companies may be unwilling to compromise growth in pursuit of sustainability. They expect customized energy solutions that align with their specific needs and are willing to invest in on-site power generation and battery storage.
Philippine companies are no longer treating sustainability as a “nice‑to‑have.” It now sits alongside cost efficiency and digital transformation as a board‑level priority. The government, together with private companies, is making significant strides in the sustainability space through renewable energy generation, with projections indicating that over 11,000 megawatts (MW) of clean energy capacity will be operational by 2030. According to the DoE, solar photovoltaics are expected to contribute the largest share, with approximately 8,431 MW planned, and around 7,399 MW anticipated to be operational by 2026. Moreover, distributed solar and storage are moving from pilots to portfolio strategies. The DoE reports cumulative net‑metered solar at approximately 141 MW from the past 10 years and at least 252 MW of own‑use projects, which clearly signals a steady shift behind the meter.
On the storage side, policy and market design are catching up: DoE Circular 2023‑04‑0008 established Battery Energy Storage System (BESS) policy for the power industry, commitments of about 1,850 MW by 2030, and major integrated solar‑plus‑BESS or integrated renewable energy storage system (IRESS) deals by leading developers. With these continued efforts from both public and private sectors, energy providers must recognize the growing demand from businesses in the Philippines for sustainable solutions and collaborate with them to create innovative offerings that harmonizes growth and sustainability.
STRATEGIC ACTIONS FOR ENERGY PROVIDERSEY’s latest research on business energy demand reinforces the urgency: commercial and industrial loads will drive the next wave of electricity growth, so winning providers will be those that reimagine the business energy experience end‑to‑end.
Enhancing digital offerings is essential for meeting the evolving expectations of business customers. Providers should focus on developing advanced digital tools that deliver proactive insights and facilitate AI-enabled interactions, allowing customers to self-serve and analyze their energy consumption patterns. Even though the Philippines differs in terms of level of advancement in digital infrastructure to other countries, developers could learn from the experience of others in integrating technology into their energy processes and services and tailor them to the country’s own landscape.
To drive energy prosperity, energy providers should deepen their understanding of business customers by moving beyond traditional categorizations and grasping the diverse drivers of energy needs. This tailored approach will enable providers to align their services more effectively with the specific requirements of different organizations. Empowering account managers to become energy success managers through internal upskilling is also crucial, as this transformation will yield strategic partnership, equipping them to offer personalized and data-driven recommendations and insights that help businesses navigate their energy challenges.
Additionally, energy providers must prioritize support for mid-sized businesses, which often face barriers in achieving their energy goals. Offering scalable solutions and flexible financing options could create significant value for this segment and contribute to broader economic prosperity.
Finally, clarifying their roles within the energy ecosystem will be vital for providers. They should define a clear strategy that aligns with the needs of businesses and captures new value opportunities. Fostering collaboration with other organizations will be key to creating innovative solutions that meet the diverse needs of business customers, ultimately enhancing the energy experience and supporting businesses in achieving their energy ambitions.
FROM A GLOBAL PERSPECTIVE TO A LOCALIZED LENSThe path to sustainable energy in the Philippines goes beyond by just adding renewables — it envisions recasting the way energy solutions are conceived, commercialized, and experienced. The drive for sustainability is about moving from transactional supply to strategic partnerships that align with business requirements, using digital platforms suitable for local infrastructure, and creating financing frameworks that bring adoption to the whole range of businesses. It is also about defining clear roles in the energy system and fostering partnerships to accelerate grid modernization and innovation.
By embracing customer-centric design, leveraging advisory knowledge, and implementing frontline digitalization, energy providers can transition from being commodity traders to enablers of resilience and growth, acting as accelerators of the green energy transition. This approach will not only facilitate cost savings for enterprises and help achieve environmental, social, and governance (ESG) targets, but also contribute to national targets of 35% renewable energy share in 2030 and 50% in 2040, making sustainability not just an environmental objective but also an economic advantage.
This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the authors and do not necessarily represent the views of SGV & Co.
Smith C. Lim is the energy sector leader and a strategy and transactions partner, and Chip A. Maalihan is a strategy and transactions associate director, both of SGV & Co.
