Energy policy-makers in emerging economies find themselves in a dilemma: They need to secure energy supply for economic growth and address environmental issues such as climate change at the same time. How to cope with this dilemma? Indonesia and the Philippines are most vulnerable to climate change and face permanent energy shortages due to economic growth. Renewables could solve the dilemma theoretically, but faces severe challenges in practice. Supportive policies are in place, but not being implemented. Therefore, this paper poses the following question: What are the constraints for renewable energy policies in Indonesia and the Philippines and how are they linked to the energy dilemma? This paper takes a multi-level governance perspective and uses the transition management approach to trace challenges and constraints for renewable energy policies. Addressing the dilemma is not only a matter of national policy-making, but also of local participation and multi-level interaction.