Investor interest in power gaining steam – Lotilla
interest in the country’s power sector, particularly in the renewable energy space, continues to gain steam, according to the Department of Energy.
“We’re always receiving a lot of investor inquiries, not only inquiries but actual applicants,” Energy Secretary Raphael Lotilla told The STAR in an interview.
“I’m glad that the President’s policies have generated a lot of interest,” he said.
Lotilla said a number of foreign investors, however, are still looking for local partners.
He said a Singaporean firm which is into the power business feels “that just like the way they invested in other countries in Southeast Asia, it’s better to have a local partner who knows the local space.”
The energy chief said the DOE and other agencies are assisting interested foreign investors find local partners.
“There will be business-to-business matching toward the end of this month precisely in response from inquiries from outside investors who are looking for local partners,” Lotilla said.
The BloombergNEF Climatescope 2023 report released in December last year showed Philippines is the fourth most attractive developing economy for renewable energy investment among 110 emerging economies.
The Philippines’ rise in the global ranking was made possible through significant progress undertaken in transitioning to renewable energy, with the country cited as one of the few that have implemented auctions, feed-in-tariffs, net metering schemes, tax incentives, and having a strong target for renewable energy.
Last month, a report by the Global Energy Monitor also showed that the Philippines is seen as among the emerging leaders globally in terms of utility-scale solar and wind energy.
The report said the Philippines alone is responsible for nearly half or 45 percent of the prospective capacity of ASEAN countries, which is more than five times the prospective capacity of any other ASEAN country except Vietnam.
The DOE said various synergies and whole-of-government approach in the implementation of energy policies and programs that President Marcos has strongly pushed have led to these positive developments.
The country’s renewable energy as of 2022 comprised 29 percent of the installed capacity and 22 percent of the gross power generation.
The DOE targets to raise renewable energy share to 35 percent in the power generation mix by 2030 and further to 50 percent by 2040.
Underscoring its commitment to the global energy transition, the country’s energy roadmap comprises of crucial elements such as implementation of renewable energy sources, energy efficiency and conservation measures, advancing alternative fuels and emerging energy technologies, adopting ICT through advanced smart grid technologies, and fortifying energy infrastructure to be resilient and climate proof.