Companies are stepping up plans for sustainable energy

LISTED COMPANIES are ramping up their renewable energy (RE) plans as part of the country’s energy transition.

“It is an exciting time for us because the market obviously continues to grow. And we’re now in a position where the story about ourselves, including our friendly competitors, is kind of coming together, where we know there is growth,” First Gen Corp. said. President and Chief Operating Officer Officer said Francis Giles B. Puno during the BusinessWorld Economic Forum on Wednesday.

Mr. Puno said the Philippines “has a lot of work to do” if it wants to decarbonize.

“As a country we are so dependent on fossil fuels, but at the same time we need to refocus our investments on cleaner and renewable energy sources,” Mr Puno said.

The Lopez-led company aims to grow its total capacity to 13 gigawatts (GW) over the next six years, of which 7.5 GW will come from new renewable energy projects.

From March 2024, coalFPower plants remain the country’s main source of electricity with a share of 44.1% or a total installed capacity of 28,291 megawatts (MW) connected to the electricity grid.

The government aims to increase the share of renewable energy in the country’s energy mix to 35% by 2030 and 50% by 2040.

Raymond B. Ravelo, head of sustainability officer from Manila Electric Co. (Meralco) said renewable energy would be key to sustainable growth.

Mr Ravelo said Meralco has developed a long-term sustainability strategy for its “just, orderly andFan affordable transition to clean energy.”

“[From] From 2031 to 2040, we will hopefully accelerate that shift as we research, assess and potentially adopt next-generation clean technologies,” he said, referring to hydrogen, energy storage, offshore wind and nuclear power, especially small modular reactors.

“Under this decarbonization eFfortresses, it has some kind of social impact. So we are very aware that sustainability goes way beyond going green and decarbonizing,” he said.

Jaime Z. Urquijo, Head of Sustainability and Risk officer of Ayala-led ACEN Corp., said the company is Ffind ways to build more sustainable energy, “which is very much needed.”

“A few years ago we announced the introduction of early retirement from coal. It is our commitment to find a replacement for that,” said Mr Urquijo.

Last year, ACEN launched its Just Energy Transition or JET roadmap for decommissioning the 246 MW plant under South Luzon Thermal Corp.

Currently, ACEN has approximately 4,700 MW of attributable capacity in the Philippines, Vietnam, Indonesia, India and Australia. It is poised to reach its 5 GW capacity target ahead of the original 2025 schedule.

Richard J. Nethercott, president and CEO of offIcer of the Independent Electric Market Operator of the Philippines, Inc. (IEMOP), said the government has programs in place to support the government’s RE objective.

IEMOP operates the Wholesale Electricity Spot Market, the venue for electricity trading.

“The government has set a clear goal. With such clear objectives, everyone knows where to go and what to do. The government has also rolled out programs in support of that goal… everything is moving in the right direction,” he said.

Mr Nethercott said full commercial operations of the renewable energy market (REM) could be launched “as soon as next month”.

The Philippine Electricity Market Corp. launched REM’s interim commercial operations in 2022. REM is a venue for buying and selling renewable energy certificates.Fthat are equivalent to an amount of energy generated from renewable energy sources. — Heroes Joy Talavera