The Aboitiz Power Corporation still sees challenges in the renewable energy sector despite its promising benefits.
In a report by the Manila Bulletin, Lacson pointed out several substantial hurdles, including regulatory uncertainties, bureaucratic challenges, and a shortage of skilled professionals.
Lacson stated that a multifaceted approach is needed. He advocated for the creation of a robust policy framework that not only encourages investment but also fosters innovation to prevent technology obsolescence.
The Aboitiz Power official emphasized the importance of continuous research and development by academia, scientists, and industry professionals to improve the competitiveness and efficiency of renewable energy technologies. He also highlighted issues with grid integration for renewable capacities, noting that it is a current focus of policy reinforcement and regulatory improvements by government agencies.
The financing of large-scale renewable projects, such as gigawatt-scale floating solar and offshore wind, remains a critical area, with banks and financial institutions still figuring out viable funding strategies.
According to Lacson, financing typically favors projects with guaranteed revenue streams, backed by either auction-linked tariffs or bilateral contracts, or those backed by financially robust parent companies.
Amidst these renewable initiatives, Lacson reiterated the Aboitiz group’s commitment to energy security. He described the necessity of balancing traditional energy sources like coal and natural gas to support the Philippines’ growing electricity demand and economic development, projected to grow by 5.19% annually.
Aboitiz Power has set a goal to add 3,700 megawatts of renewable energy by 2030. To date, it includes the operation of the 159 megawatt-peak (MWp) Laoag solar and 94 MWp Cayanga-Bugallon solar plants in Pangasinan, the 17 MW Tiwi Binary geothermal facility in Albay, and a 24 MW Magat battery energy storage system (BESS) in a joint venture with Norwegian firm Scatec under subsidiary SN Aboitiz Power.
Upcoming projects include the 173 MWp Calatrava solar project in Negros Occidental, the 45-MWp Armenia solar venture in Tarlac, and the 212 MWp Olongapo solar farm in Zambales. With over 700MW already added, Aboitiz Power continues to push towards its target by developing approximately 3,000MW in its planned renewable portfolio.
