The Philippine energy system must evolve.

Our energy system has remained largely the same for over a century. But as demand grows and climate challenges intensify, it’s clear that change needs to happen.

If you’re from the Philippines, you probably have firsthand experience of the current energy system's vulnerability to widespread power outages. Centralized models are dependent on one large facility generating electricity on a massive scale. They have trouble adapting to changes in supply and demand, and are prone to losing huge chunks of energy during transmission and distribution.

With climate-related disasters like typhoons hitting harder and more frequently than ever, energy resilience is absolutely critical. However, millions of Filipinos still lack access to reliable energy, even though we pay the second-highest electricity prices in Southeast Asia (PCIJ). For us, the facts are clear: what the Philippines needs is a decentralized energy system. 

The Power of Decentralization

Decentralized energy systems are resilient, adaptable, and sustainable. Because of their distributed nature, risk is spread across a wider network (EIS Council). They reduce energy waste by bringing electricity nearer target points of consumption, and encourage the use of renewable energy sources instead of fossil fuels.

A decentralized energy system with onsite power generation would work perfectly for an archipelago like the Philippines. Here’s what stands in our way, though: roadblocks in policy implementation, difficult permitting processes, infrastructure gaps, and a severe lack of financing. 

Shifts in Philippine energy are happening, slowly but undeniably. The country's renewable energy adoption rate is currently about 22% of its total energy mix. To address increasing demand for energy and to uphold its commitment to reduce emissions, the government's National Renewable Energy Program aims to increase shares of renewable energy by at least 35% by 2030, with a target of 50% by 2040 (Climate Tracker Asia). 

It’s high time for the energy transition to be a top priority, and for initiatives trying to build local sustainable energy solutions to be given genuine support. While the road to making the shift may be long and complex, it's one we need to take.

1882’s Six Core Outcomes: How Decentralization Creates Real World Impact

The shift to decentralized energy isn’t just about technology—it’s about addressing real issues lived by real people. We want to be 100% sure that the work we do solves problems that matter. That’s why at 1882 Energy Ventures, we’re guided by six outcomes we think are key to building the Philippines’ future in sustainable energy.

1. Accelerating the global energy transition. The time for change is now, and we need to act fast. We’re revved up and ready to do what we can to speed up the shift to clean, decentralized energy.
2. Improving energy access & climate resilience. Decentralization means localizing solutions to expand availability while adapting to climate risks. By moving energy production closer to consumers, we can build sturdier, more resilient grids.
3. Empowering communities to thrive. We envision access to affordable, reliable energy for all Filipino homes and businesses. Contrary to the belief that an energy transition would be expensive, decentralization can actually make energy more affordable (WIPO).
4. Enhancing energy system efficiency. We’re putting our foot down when it comes to energy waste. 1882 Energy Ventures determined to build smarter, more adaptive energy networks, and decentralization is the way to go.
5. Deepening decarbonization efforts. We all have a part to play in the global effort to fight climate change and cut emissions in half by 2030. Ours is all about enabling cleaner energy alternatives.
6. Unlocking new opportunities for sustainable growth. We generate business models that align economic and environmental value. We’re confident that a sustainable energy future is possible because bit by bit, pieces of the puzzle are starting to come together. Everyday, new DERs open up inspiring and exciting new prospects.

What are DERs?

Distributed Energy Resources (DER) are small-scale local energy generators and storage systems that may either be independently operated or connected to power grids. They’re all about optimizing free, inexhaustible renewable energy sources such as sunlight and wind, making them not only more sustainable, but also cost-saving. E-mobility (electricity-powered transportation), microgrids, energy IoT, and solar power are just some of the ways DERs are starting to reshape an energy sector long-dominated by coal. 

Facilitating the shift to DERs is crucial to building resilient and sustainable systems. There’s no shortage of brilliant minds who not only want to change the world for the better, but actually have the schematics to make it happen. The only thing they lack is the support to turn the possibilities they’ve designed into realities. That, my friends, is where we come in.

1882 Energy: Building Ventures that Move the Needle

1882 Energy Ventures was born out of the recognition that the energy transition has to be built on collective effort and community-driven solutions. Truth is, no single company stands a chance at tackling the Philippines' energy problem alone. 

Our mission is to help shape the transition to decentralized energy by building and scaling start-ups that contribute to a growing ecosystem of DER in the Philippines. That’s why our six outcomes are about working towards the bigger, more long-term picture. Instead of one-size-fits-all solutions, we look for gaps, challenges, and opportunities to build businesses that support decentralization. Heard of Solviva Energy? They’re a leading provider of residential rooftop solar (RTS) in the Philippines and a subsidiary of ours that we’re extremely proud to work with. 

The energy transition is happening with or without us. The question is, how will we take part in shaping it? 1882 is one contributor to this global shift, but we need more builders, innovators, and partners to make it happen. Talent, innovation, and partnership are essential to turning the vision of sustainable, decentralized energy systems into a new reality. 

More than technology, at the center of decentralization is people, community, and progress. 

If you’re interested in reshaping energy—whether as a partner, innovator, or advocate—let’s get the conversation started.