The Philippines faces a convergence of critical challenges in energy, food security, and climate resilience. These issues create what can be termed an “energy-food-climate trilemma,” in which demand for affordable energy, agricultural productivity, and climate adaptation collide. Currently, the Philippines is heavily reliant on fossil fuels for its energy supply, importing approximately 50% of its energy needs [1], which makes it vulnerable to global price fluctuations and supply chain disruptions. Meanwhile, agriculture, a cornerstone of rural livelihoods and food supply, is also under strain from climate change impacts like increased temperatures, extreme weather events, and declining crop yields [2]. Agrivoltaics, the dual-use of land for solar energy generation and agriculture, emerges as a potentially transformative solution, addressing each pillar of the trilemma by generating renewable energy, enhancing agricultural output, and offering climate adaptation co-benefits [3].

Despite the Philippines’ strategic potential for solar power and the agricultural sector’s economic importance—contributing to 9% of GDP [4] and 24% of the workforce [5]—the integration of these sectors through agrivoltaics remains untapped. Adoption barriers include regulatory uncertainty, fragmented land ownership, limited farmer financing options, and insufficient technical expertise in dual-use project design and operation. As a result, agrivoltaics remains at an early development stage despite its ability to alleviate pressing energy and agricultural challenges, as well as contribute to the 25% quota under the new Agri-Agra Reform and Rural Development Act (AFRD) [6]. The Philippines’ reliance on food imports (notably, $9.7 billion in 2022) underlines the urgency of localizing agricultural production, while the anticipated 7% increase in electricity demand by 2025 highlights the parallel need for distributed renewable energy solutions [7].

Agrivoltaics represents a transformative opportunity to become a new asset class within climate finance. Its dual capacity to generate RE and enhance agricultural productivity aligns perfectly with the priorities of global climate finance mechanisms. These mechanisms prioritize projects that deliver both mitigation and adaptation benefits, and agrivoltaics offers an ideal blend by improving land use efficiency, conserving water, and bolstering crop resilience against climate extremes. 

Globally, agrivoltaics has been recognized as financially viable, with project returns comparable to traditional RE investments but enhanced by additional social and environmental co-benefits. For instance, agrivoltaic projects in India and France have demonstrated profitability while improving farmer incomes and reducing water usage. Framing agrivoltaics as an asset class can attract investments from private equity, development banks, and green bonds.  

Agrivoltaics has been successfully scaled in China (31.6 GW), the United States (10 GW), and Europe (15 GW across 10 countries). Japan, Germany, and France have implemented policies that integrate agrivoltaics into renewable energy frameworks, ensuring both energy production and agricultural yields remain strong. The Philippines is uniquely positioned to learn from these successes and lead agrivoltaics development in Southeast Asia.

Agrivoltaic projects, when deployed effectively, can serve as a dual solution for the Philippines’ agricultural and energy sectors, contributing to food security, renewable energy capacity, and economic resilience. Additionally, agrivoltaics’ modular design and flexible ticket sizes make it suitable for various financing models under AFRD, attracting both private investors and development finance institutions (DFIs). Given the clear revenue model, established technology, and ecosystem readiness, agrivoltaics aligns well with the sustainable finance framework and represents a viable pathway for the Philippines to meet AFRD quotas through green investments.

The Asia Engine for Net-Zero Institute (AENZ) has undertaken transformative efforts to lay the foundation for agrivoltaics in the Philippines through its Asia Agrivoltaics Initiative (AAI). The initiative’s cornerstone is a comprehensive feasibility study that establishes agrivoltaics as a bankable, scalable, and impactful solution to the nation’s interlinked challenges of energy security, agricultural productivity, and climate resilience. By integrating technical analysis, financial modeling, and policy recommendations, AENZ’s work demonstrates the potential of agrivoltaics to drive sustainable development while addressing the critical energy-food-climate trilemma. Building on this foundation, AENZ is spearheading strategic actions to catalyze agrivoltaic adoption and scale-up.

1. Pilot Projects in Key Agricultural Regions: Launch agrivoltaic pilots in key agricultural areas (e.g., Central Luzon, Ilocos Region), using a range of crops and solar technologies to demonstrate financial viability, impact on crop yields, and energy production. Aim for 10 MW cumulative capacity by 2025.
2. Establish Financing Partnerships: Collaborate with financial institutions to create tailored financing packages, leveraging sustainable finance incentives under AFRD. Integrate concessional financing from DFIs to lower entry barriers for smallholders and cooperatives.
3. Policy Advocacy for Agrivoltaic Standards: Engage with government agencies (e.g., DOE, DA) to develop regulatory guidelines that facilitate agrivoltaic adoption, including land-use classifications, tax incentives, and fast-tracking of approvals for dual-use projects.
4. Monitoring and Impact Assessment Framework: Implement a comprehensive monitoring system to track and assess agrivoltaics’ impacts on crop yield, energy generation, and farmer income. Publish annual reports to provide transparency and data-driven insights.

Agrivoltaics offers transformative benefits for the Philippines, addressing critical challenges in energy, food security, and climate resilience. Each megawatt (MW) of agrivoltaic capacity is capable of generating approximately 1.5 million kWh annually—enough to power 1,000 households while reducing carbon emissions by 900 metric tons. Beyond energy generation, agrivoltaics enhances food security by enabling dual land use, potentially reducing agricultural land demand by 5% while maintaining crop output. This dual-use approach mitigates the Philippines’ reliance on food imports and supports local agricultural productivity, positioning agrivoltaics as a sustainable solution to the country’s energy-food-climate trilemma.

The economic and climate resilience benefits of agrivoltaics further underscore its transformative potential. By providing farmers with diversified income streams from both crop sales and energy production, agrivoltaics increases smallholder incomes while enhancing rural livelihoods. The system’s shading effect shields crops from extreme weather and reduces water evaporation, bolstering agricultural resilience against climate risks. Moreover, with its clear revenue model, proven technology, and alignment with the Agri-Agra Reform and Rural Development (AFRD) framework, agrivoltaics is set to attract substantial private investment—estimated at $100 million by 2030. This creates a replicable model not only for the Philippines but for Southeast Asia, fostering a scalable pathway toward sustainable development.

Agrivoltaics presents an innovative opportunity for the Philippines to address its energy-food-climate trilemma. With strategic investments, policy support, and capacity building, the Philippines can leverage agrivoltaics as a pathway to sustainable rural development, energy security, and agricultural resilience, while aligning with national green finance objectives under AFRD.