Companies Announce Exciting Developments on Renewable Energy Plans
- July 4, 2024
At the BusinessWorld Economic Forum 2024, listed companies discussed their renewable energy plans during the nationwide transition to clean power. “It’s an exciting time for us because, obviously, the market continues to grow. And, if anything, we’re now in a position where the narrative across ourselves, including our friendly competitors, is sort of converging, where we know there’s growth,” First Gen Corp. President and Chief Operating Officer Francis Giles B. Puno.
He adds that the Philippines would have “a lot of work to do” in its aim to decarbonize.
“As a country, we rely so much on fossil fuel, but at the same time, we need to refocus our investments into cleaner and renewable energy sources,” Mr. Puno said.
First Gen Corp. is targeting its total capacity to 13 gigawatts (GW), 7.5 GW of which will be from budding renewable energy projects in the next six years.
Coal-fired power plants still dominate the country as of March 2024, with a total installed capacity of 28,291 megawatts (MW) connected to the grid, making up a 44.1% share.
The government plans to raise the renewable energy shares in the Philippines’ power mix to 35% by 2030 and 50% by 2040.
Raymond B. Ravelo, chief sustainability officer of Manila Electric Co. (Meralco), said that RE would be instrumental to sustainable growth.
Mr. Ravelo states that Meralco has developed a long-term sustainability strategy for its “just, orderly, and affordable transition into clean energy.”
Regarding hydrogen, energy storage, offshore wind, and nuclear, particularly small modular reactors, he says that “From 2031 to 2040 is where we will hopefully accelerate that shift, as we explore, assess, and potentially adopt next-generation clean technologies,” he said, referring to
“Under these decarbonization efforts, it kind of has a social impact. So, we are very much aware that sustainability goes well beyond green and decarbonization,”
Jaime Z. Urquijo, chief sustainability and risk officer of ACEN, said that the company is expending solutions to build more sustainable energy, “which is very much needed.”
“A couple of years ago, we announced the implementation of early coal retirement. Our commitment is to find a replacement for that,” Mr. Urquijo said.
ACEN launched its program for retiring the 246-MW plant under South Luzon Thermal Corp, called Just Energy Transition (JET).
Across the Philippines, Vietnam, Indonesia, India, and Australia, ACEN already holds about 4,700 MW of attributable capacity. It is projecting an early accomplishment of its 5-GW capacity target before its 2025 initial deadline.
Richard J. Nethercott, president and chief executive officer of the Independent Electric Market Operator of the Philippines, Inc. (IEMOP), said that the government is supporting their RE target by implementing programs..
IEMOP operates the Wholesale Electricity Spot Market, the venue for trading electricity.
“The government has set a clear target. With such clear targets, everyone knows where to go and what to do. The government has also been rolling out programs in support of that target… everything is set on the right direction,” he said.
Mr. Nethercott predicts that the full commercial operations of the renewable energy market (REM) may be launched “as early as next month.”
The Philippine Electricity Market Corp. launched the interim commercial operations of the REM in 2022. REM is a venue for buying and selling renewable energy certificates which are equivalent to an amount of power generated from renewable energy sources.
