The Philippines continues to experience electricity shortages, particularly in the provinces. To rectify this, the country must find ways to prevent such inadequacies. Foreign energy firms are considering the country for renewable energy investments.
Portuguese Firms See Philippines for Renewable Energy Investments
According to the Department of Energy (DOE), Energias de Portugal (EDP) and EDP Renewables (EDPR) consider the Philippines for their renewable energy investments. The agency said Portugal is an early start-up in renewable energy and shares the same challenges as the country. It’s enthusiastic about the DOE’s proposition to establish and use the country’s renewable energy sources.
Energy Secretary Raphael Lotilla affirmed possible areas of cooperation. It includes offshore wind (OSW) development and hydrogen, floating solar, and ammonia production using renewable energy. They will also tackle the importation of liquefied natural gas (LNG), improve transmission, and distribution lines in the country to reinforce economic development and energy transition program.
Moreover, Lotilla stressed Portugal’s expertise in reprocessing and driving the conversion of coal power plants. It utilises other alternative energy sources, such as co-firing with ammonia or hydrogen.
In January 2021, EDP’s coal-fired power plant in Sines shut down. On the other hand, Tejo Energia Pego’s coal-fired power plant stopped its operation in November of the same year. This proves that coal exit is feasible by combining carbon pricing and transition planning.
Malaysian Government-Back Firm Partners with PH-Based New Wave Strategic Holdings Incorporated
Philippine-based equity investor New Wave teams up with state-backed Emissary Capital to invest $50 million in renewable energy. The projected investment aims to generate as much as 1,000 megawatts of “bankable capacity.”
“It is important that the Philippines develops a more mature ecosystem with capital providers across various stages of the investment cycle. With Emissary’s entry into the Philippines, we are providing more founders and entrepreneurs access to growth capital as well as a regional network that can help them expand across Southeast Asia,” said New Wave director Enrique Gonzalez.
These firms will finance endeavours in the renewable energy sector, clean energy, smart grid enablers, and the electric vehicle industry. They will likewise focus on solar and wind farms in northern Luzon.
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