The race to renewables
By Jayson Gacutno – June 3, 2024, 8:45 pm
from manilastandard.net
“The collective work of the government and the private sector will push boundaries for a sustainable energy transition in the Philippines.”
I am looking forward to the day when we are all dependent on renewable energy. Our country’s abundant natural resources can be harnessed for clean energy.
It’s essential for our government, institutions, and private sector to participate actively in this transition. The National Renewable Energy Program (NREP) will guide this shift through robust policies and private sector involvement. Let’s explore this program, the companies driving clean energy progress, and the sustainability principles behind these changes.
The NREP is crucial to the Philippines’ sustainable energy agenda. It aims to achieve national energy security and promote clean energy sources. Through a dynamic plan that is regularly reviewed, it addresses challenges such as infrastructure, financing, transmission, and technology. The revised target is to reach at least 35 percent renewable energy generation by 2030 and up to 50 percent by 2040, focusing on private sector participation in renewable energy projects.
The country’s big conglomerates and energy companies have been contending for renewables. Aboitiz, San Miguel, Ayala, First Gen, and Meralco are the names we will continue to see in clean energy projects and investments; their vertically integrated businesses allow them to compete head-to-head. Here are some of the highlights of what they do in the renewable energy space:
Under its Cleanergy portfolio, Aboitiz Power Corp. is investing up to P190 billion over the next decade in a mix of solar, wind, and hydro, primarily located in Luzon. As the largest operator of renewable energy (RE) in the country, Aboitiz Power continuously develops its pipeline with the intent of participating in government initiatives.
San Miguel Power, through its wholly-owned subsidiary, Universal Power Solutions Inc., is investing at least P40 billion for its nationwide project of battery energy storage system (BESS); this placement of energy storage is considered the largest and the first in the Philippines and is expected to contribute a combined capacity of 1,000-megawatt hours (mWh), enabling power grid support and addressing electricity intermittence in the country.
AC Energy of the Ayala Group envisions providing 20 GW of capacity in renewable energy by 2030, with a current investment of P50 billion and a 98-percent share of RE in its energy mix. Its completion of the first market-based Energy Transition Mechanism in the world allowed for the decommissioning of a coal plant in Batangas, which will eliminate 50 million metric tons of greenhouse gas emissions. ETM has delivered at least P17.4 billion in transaction value, P7.2 billion in proceeds, and zero’ coal plant ownership’ for the company.
First Gen Corp. invests in various renewable energy sources such as solar, geothermal, hydroelectric, and wind. For solar, the company, through its subsidiary, Energy Development Corp. (EDC), invested in building solar plants in Ilocos Norte with at least 6.82 MW of energy capacity. In geothermal, EDC is considered the largest vertically integrated geothermal company in the world, with operations in 12 stations across the archipelago. For hydroelectric, First Gen has the Pantabangan-Masiway Hydroelectric Power Plant in Nueva Ecija and the Agusan Mini-hydroelectric Plant in Bukidnon. In wind, the EDC Burgos Wind Power, a subsidiary of EDC, operates the country’s largest wind power project.
Meralco PowerGen invests in solar energy and targets increasing its RE mix by 1,500 megawatts in the coming years. The company’s maiden RE investment is through BulacanSol, which has 55 MW of energy capacity. Two solar projects are underway with target locations in Rizal and Ilocos Norte.
The collective work of the government and the private sector will push boundaries for a sustainable energy transition in the Philippines. These new initiatives for clean energy require a new mindset, systems, and approaches to build the necessary infrastructures, financing, and leadership to lift us from the old carbon-induced energy. The race for renewables greets us all with an anticipation of a better future. I can’t wait to see a carbon-neutral Philippines.
The author is an MBA student at the Ramon V. Del Rosario College of Business of De La Salle University. He wrote this reflection paper for her class on Sustainable Business. He can be reached at jayson_gacutno@dlsu.edu.ph.
The views expressed above are the author’s and do not necessarily reflect the official position of DLSU, its faculty, and its administrators.
