- September 28, 2023
Philippine government unveils ambitious Energy Transition Plan, anchored on smart and green grid, to international partners in New York
Philippine government unveils ambitious Energy Transition Plan, anchored on smart and green grid, to international partners in New York
Ivan Galura, Senior Associate
Ivan Galura, Senior Associate
Climate Smart Ventures Pte Ltd (CSV), a Singapore-based transition and transaction advisory firm, together with the Rockefeller Foundation and the Environmental Defense Fund, hosted a dialogue entitled “Mobilizing International Support for Power Sector Decarbonization in the Philippines” last September 22 in New York on the sidelines of the 2023 United Nations General Assembly. The event brought together key figures from the governments of the Philippines, United States, the United Kingdom, and Indonesia, as well as senior representatives from major financial institutions, and leading energy think tanks to unveil the Philippine Energy Transition Plan anchored on aggressive renewables development, grid expansion, offshore wind, and voluntary coal plant retirement.
Joseph Curtin, Managing Director of the Rockefeller Foundation, recognized and commended the Philippines for its clear blueprint to transition towards cleaner energy sources. “Rockefeller Foundation is committed towards supporting innovative solutions to the climate crisis around the world. The Philippine Energy Transition Plan presents a unique model for unlocking low carbon development in emerging markets as its strategic emphasis on enhancing grid infrastructure logically paves the way for enabling a shift from coal-to-clean that can be scaled and sustained over the long-term.”
The dialogue was graced by keynote addresses delivered by the Philippine Department of Energy Undersecretary Rowena Guevara and CSV Managing Partner Lawrence Ang. Lida Fitts of the Sustainable Infrastructure Office of the U.S. Department of Treasury, Theresa O’Mahony-Heer of the U.K. Foreign and Commonwealth Office, Abhishek Bhaskar of the Climate Investment Funds (CIF), and Amanda Brockbank representing the Glasgow Financial Allianz for Net Zero (GFANZ) also participated in the panel discussion.
Undersecretary Guevara shared the Philippine government’s priorities towards advancing an energy transition and invited international cooperation to help accelerate the country’s plans. “The Philippine government is focusing on four strategic energy transition initiatives to steer the country’s transition to affordable, reliable and clean power – specifically, accelerated renewable energy (RE) development; a smart and green grid system that supports RE development; port buildup to support offshore wind development; and voluntary coal plant retirement and/or re-purposing” The Undersecretary said that “the the Philippines welcomes the opportunity to partner with the private sector, international donor community, and development partners to drive the transformation of our power sector in an ambitious, just and sustained manner.” Guevara added that several policies are already in place to support renewable energy growth in the country including recent directives to allow for 100% foreign ownership of power projects. She also noted that the Philippines hosted the first market-based energy transition mechanism by ACEN Corporation which will program the early retirement of its 246MW (net) coal fired power plant in the Philippines by 2040. She added that the Philippines is expected to reach 35% and 50% share of renewable energy in power generation by 2030 and 2040, respectively, and possibly exceed these targets with international support.
Lawrence Ang, Managing Partner of CSV, emphasized the once-in-a-generation opportunity of grid transformation as a means to systematically unlock renewables for the Philippines and enable first movers for the transition. “The Philippine Government recognizes that rapid developments in renewable energy such as offshore wind and other technologies present an opportunity to further diversify the country’s power mix and pass-on economic benefits to consumers”. He noted that the country’s current transmission infrastructure and slow growth of ancillary supply contracts limit penetration of renewable energy. “CSV applauds the Philippine government’s bold and decisive approach to enable the coal-to-clean transition through grid expansion and offshore wind power development” Mr. Ang said. He further added that “if successful, these will effectively steer first movers to accelerate their transition plans.” “We are keen to support the Philippines’ decarbonization journey and invite the international community to support this unique country-driven program,” Ang concludes.
CSV, in partnership with the UPecon Foundation of the University of the Philippines School of Economics, Makati Business Club, and Jacobs, is currently scoping how an international support program could be developed to boost the Philippines’ transition efforts. The project is expected to be completed by October 2023.
