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AboitizPower, IFC sign engagement to explore baseload RE in the Philippines
April 04, 2022
Aboitiz Power Corporation recently signed an agreement with the International Finance Corporation (IFC) for an in-depth joint study to assess the viability of renewable energy (RE) as a source of baseload power for the Philippines, a step seen to help the company navigate the country’s transition towards a cleaner energy future.
In support of the Philippines’ target of 35 percent share of renewable energy in the country’s overall generation mix by 2030 and 50 percent by 2040, the study seeks to explore a mix of technologies that can potentially displace fossil fuel-based power sources and reduce CO2 emissions from the Philippine energy mix.
“I am pleased to join the representatives of IFC in signing this agreement that aims to take the first few very important steps in this journey of discovery. We eagerly look forward to learning about how we can generate baseload power that is technically and financially feasible and also scalable,” said AboitizPower President and Chief Executive Officer Emmanuel V. Rubio.
Integral aspects of the study include evaluating hybrid-photovoltaic storage technology and assessing the technical and economical viability of generating power from a combination of different RE sources within the context of the Philippines’ baseload needs and energy supply and demand characteristics.
“Thus, we expect this study to be bespoke to the Philippines based on our national resources, our climate, and our geography to suit our energy system. I am excited and optimistic that we will find what we are all looking for simply because it is a great journey of discovery, but more so, this holds great potential for the future generation of Filipinos, and of course, our planet Earth,” added Rubio.
Liza Luv T. Montelibano, Chief Financial Officer of AboitizPower, shared that AP’s partnership with IFC began back in 2007 when the latter financed the rehabilitation of Aboitiz’s power plants, which now serves as an essential contributor to the Philippine’s energy landscape. This new engagement, however, marks another milestone in their renewable energy journey.
“It is with this critical piece that we believe we will be able to pursue an effective solution for energy transition in the Philippines. For us in AboitizPower, this is key for us to remain true to our mission of driving energy sufficiency for the country that is reasonably priced and that is cognizant of taking care of our environment,” said Montelibano.
Highlighting the importance of renewable energy, Alfonso Garcia Mora, IFC Regional Vice President for Asia and the Pacific, said, “Given its climate commitments, IFC is confident that renewables will offer a viable path forward for the Philippines. Harnessing cleaner and natural resources, including solar and wind, will enable the country to diversify its energy mix and improve energy security while also tackling climate change impacts.”
AboitizPower, together with its partners, holds the largest RE generation installed capacity in the country, comprising solar, hydro, and geothermal energy. Currently, P190 billion has been allocated for its RE projects and an additional capacity of 3,700 megawatts.
“At AboitizPower, we recognize our integral part in the commitment towards net zero emissions in the country. Through our 50/50 by 2030 strategy, we aim to achieve a balance between renewable and thermal portfolios in support of the global movement for clean energy,” said Rubio. “To grow RE above and beyond the 2030 ambition and to begin reducing CO2 emissions from the Philippine power system, we must find ways to displace fossil fuel burning baseload power with zero-emissions power generation technologies.”