Renewable energy projects to fuel growth
MANILA, Philippines — With the rising interest for renewable energy (RE) projects in the country, a third of the investments approved by the Board of Investments (BOI) this year are targeted to come from the RE sector.
In an interview with reporters, Trade Secretary Alfredo Pascual said RE projects are seen to account for a third of the BOI’s P1.5 trillion approved investments target this year.
“That’s only for (power) generation,” Pascual said.
He said they are also talking to a potential investor for RE but related to manufacturing intended for export.
During the Offshore Wind Conference earlier this month, Pasual urged Chinese investors to look into the country’s RE sector, emphasizing that the investment opportunities go beyond establishing power generation projects, as there is also business potential in designing and manufacturing the required hardware and components for RE projects.
“We invite Chinese companies to bring to the Philippines their technology and expertise in equipment design and manufacturing for solar and wind power generation. We also welcome investors in the related sectors of battery energy storage systems and off-grid power supply systems,” Pascual said earlier.
Trade Undersecretary and BOI managing head Ceferino Rodolfo earlier attributed the high BOI investment approvals in the five months of the year to RE projects, especially from German companies.
Investments approved by the BOI surged nearly 160 percent to P532.3 billion in the first five months from P205.7 billion a year ago.
The amount was already more than a third of the BOI’s target of P1.5 trillion investments for the year.
Foreign investments, which accounted for the bulk or 76 percent of the total, skyrocketed by 7,076 percent to P430.86 billion.
In contrast, approved local investments declined by 36 percent during the period to P128.41 billion from P200.1 billion in the same period last year.
Rodolfo said that project leads have also reached nearly P1 trillion, the bulk of which are RE projects.
Pascual recently called for more Chinese investments in the renewable energy sector in a bid to achieve the country’s 50 percent RE power generation mix target in 2040.
During the Offshore Wind Conference, Pascual shared that the country’s target of increasing the share of RE in the country’s power generation mix to 35 percent in 2030, and 50 percent by 2040.
“Our ambitious goals for energy transition reflect our commitment to sustainable development. Energy demand in the Philippines is growing in line with our country’s projected strong economic growth at six percent to even percent in this and the coming years.
The demand for energy, especially for green energy, is expected to outpace our current supply level,” Pascual said.
He said the country needs over 52,800 megawatts (MW) of additional renewable energy capacity to reach its 2040 goal.