Manila, Philippines, March 30, 2022—A new study will help assess the viability of renewable energy as a source of base load power in the Philippines, with IFC and AboitizPower Corporation—a leading integrated energy company in the country—signing an agreement. The aim is to help the nation shift to cleaner energy sources, promoting a sustainable and resilient economy.
As part of the engagement, IFC will conduct a joint in-depth study to explore a mix of technologies that can potentially displace fossil fuel-based power sources and reduce CO2 emissions in the Philippines, supporting the nation's climate goals—35 percent share of renewable energy in the country's overall generation mix by 2030 and 50 percent by 2040.
"Our engagement with IFC is a significant step in mapping an effective climate action roadmap for the company. Based on the country's natural resources, climate, and geography, we look forward to learning more about how we can generate base load power that is technically and financially feasible as well as scalable," said AboitizPower President and Chief Executive Officer Emmanuel V. Rubio.
Among other things, the study will evaluate hybrid solar photovoltaic and energy storage solutions and the technical and economic viability of generating power from a combination of different renewable sources within the context of the Philippines' power needs and supply-demand patterns.
"For AboitizPower, IFC's timely support will help us stay true to our mission of driving energy sufficiency for the country that is both affordable and climate friendly," said Liza Luv T. Montelibano, Chief Financial Officer of AboitizPower.
The company's partnership with IFC began in 2007, when the latter financed the rehabilitation of Aboitiz's power plants. They now serve as an essential contributor to the Philippines' energy landscape. For the company, this new engagement marks yet another milestone in terms of its renewable energy journey.
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, along with its partners, holds the largest renewable energy generation installed capacity in the country, comprising solar, hydro, and geothermal energy. Currently, P190 billion has been allocated for its renewable energy projects along with an additional capacity of 3,700 megawatts.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org
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