The Philippine National Oil Company-Renewables Corp (PNOC-RC) has been ordered to deactivate by the central regulator mandated to ensure transparency of government-owned corporations.
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In a memorandum order document dated 18 February seen by Eco-Business, the Governance Commission for Government-Owned or Controlled Corporations (GCG) resolved to formally dissolve the state-run Philippine National Oil Company’s renewable energy arm after determining that it is “no longer achieving objectives and purpose, is not cost efficient and does not generate the level of social, physical, and economic returns vis-a-vis the resource inputs.”
PNOC-RC has completed small-scale renewable energy projects with a combined capacity of about 3.67 megawatts (MW), including solar rooftops and hydropower, along with an attributable capacity of 3.2 MW on the Maibarara geothermal power plant, of which it has a 10 per cent stake in. PNOC’s subsidiary has been operating with negative cash flow and financial uncertainty, according to its latest audited financial report.
Published in April 2025, the report by the Commisison of Audit said that the PNOC board of directors had decided on the deactivation of their renewable arm in June 2024, but were pending approval from the GCG. The auditor added that it had “substantial doubt about the PNOC RC’s ability to continue as a going concern.”
Despite these problems, the organisation’s closure will mean the removal of a dedicated public sector platform for government‑led rooftop and small‑scale renewable energy projects, reinforcing the tilt toward private‑driven deployment, suggested Avril De Torres, deputy executive director of climate and energy think tank Center for Energy, Ecology, and Development (CEED).
“The PNOC-RC may have been limited in meeting its objectives, but in no way is our government excused in its responsibility to ensure the advancement of affordable and reliable energy from renewables for all Filipinos, especially among low-income, energy-poor communities which are not profitable areas for the private sector,” De Torres told Eco-Business.
De Torres cited how the failure of some private firms to deliver on renewable contracts under the Philippines’ green energy auction has given more reason for the government to “reassert its responsibility of safeguarding energy access as a public good, and not relinquish its responsibility of advancing the development of renewable energy in the country to the private sector.”
Last month, the DOE terminated agreements for nearly 18 gigawatts of solar, wind and other clean power projects after it found prospective investors had no intention to build them.
The Philippines has pledged to sharply expand the share of renewable energy in its power mix, targeting at least 35 per cent by 2030 and 50 per cent by 2040, under its National Renewable Energy Programme. It is rapidly scaling up its renewable energy pipeline, supported by the private sector through green energy auctions and more liberal foreign ownership rules.
PNOC-RC was specifically created in 2008 to act as the government’s implementing arm for promoting, developing, and implementing renewable energy projects in line with the Renewable Energy Act and PNOC’s broader mandate.
Since 2019, lawmakers have been pushed for abolishing or merging PNOC subsidiaries, including PNOC-RC and narrowing the firm’s mandate to core investments like upstream oil and gas.
PNOC’s main oil and gas investments are held through its subsidiary PNOC Exploration Corporation (PNOC‑EC), particularly its 10 per cent stake in the Malampaya gas project, the country’s main domestic source of energy, that is expected to run dry by 2027.
