Renewable Energy

Multifaceted approach empowers RE growth

September 03, 2024

Investment-friendly environments foster the progress of renewable energy projects and help boost its adoption, said Aboitiz Power Corporation (AboitizPower) Chief Investment Officer Joseph Lacson, calling for strengthened cooperation among all stakeholders for it to be fully realized.

“While the potential benefits of a renewable energy future are immense, the path is fraught with many challenges. The current business landscape is characterized by some degree of uncertainty, bureaucratic hurdles, and a shortage of skilled professional workers,” he said during the Energy Smart Forum 2024 event by the European Chamber of Commerce of the Philippines.

“A multifaceted approach is essential to our journey toward a renewable energy future. A robust policy framework that encourages investment and innovation is paramount,” he explained, noting how the responsibility of the energy transition does not fall squarely on power producers.

Banks and financial institutions “play a catalytic role in driving investments”, while at the same time, the public sector serves as a “cornerstone of any successful energy transition”, ensuring community involvement and addressing policy and regulatory concerns.

Continuous research and development from the academe, scientists, and industry professionals are also “essential to enhance the competitiveness and efficiency of renewable energy technologies”, while the transmission and distribution sectors are important in “modernizing and expanding [the] grid infrastructure” to serve the requirements of power consumers.

With a projected annual growth rate of 5.19% in peak electricity demand and the need to sustain economic growth for development, Lacson also reminded his audience to account for energy security, which would necessitate a balanced utilization and maximization of traditional yet dispatchable energy sources like coal and natural gas.

To support the Philippine government’s renewable energy targets, AboitizPower is expanding its generation portfolio with over 1,000 megawatts of disclosed energy projects in solar, hydro, geothermal, wind, and energy storage systems en route to building 3,700 megawatts of new clean capacity. To date, it manages the country’s largest renewable energy portfolio, based on installed capacity under its operational control.

The Company recently energized the 159-MWp Laoag Solar Power Plant and the 94-MWp Cayanga-Bugallon Solar Power facility in Pangasinan, as well as the 17-MW Tiwi Binary Geothermal Power Plant in Albay. Early this year, under the SN Aboitiz Power Group, it also began commercial operations of the 24-MW Magat battery energy storage system (BESS), which is primarily being used for ancillary services to augment supply in the Luzon grid.

Meanwhile, Lacson had also indicated that the 173-MWp Calatrava Solar Project in Negros Occidental, the 45-MWp Armenia Solar in Tarlac, and the 212-MWp Olongapo Solar in Zambales are in various stages of completion.

AboitizPower also helps meet the country’s energy demands through the operation of its thermal power plants, which support the country’s baseload and peak energy demands, both critical to energy security vis-a-vis economic growth and development.

“From projects of massive scale to rooftop solar, we [aspire] to make this [energy transition] work, hand-in-hand with stakeholders, end-users, and the government,” Lacson said.