IEEFA: PH RE sector to gain investment opportunities

Philippine’s Renewable Energy continues to boom

The country’s renewable energy sector is seen to have accelerated growth following the rise in investor interest, the Institute for Energy Economics and Financial Analysis (IEEFA) said. 

In its recent report entitled “Business Model Innovations Drive the Philippines Energy Transition,” the IEEFA said that investors are more willing to put significant value on renewable projects than traditional utilities. 

The industry’s top players played a key role in the rise of investment interests, attracting them through innovative strategies and successful execution of RE initiatives and particularly the emergence of Philippine Stock Exchange-listed renewables developers and operators.

“In terms of how investors view asset values, pure play renewables companies command a valuation premium over utilities having lower levels of renewables in their mix,” report author and IEEFA Climate and Renewable Energy Finance Lead Rammath Iyer said in a statement. 

IEEFA cited listed companies like ACEN Corp., Citicore Energy REIT Corp., and Solar Philippines as part of emerging industry players in the country. They are expected to expand significantly while taking part in the accelerated growth of the RE sector in the Philippines.

The report also mentioned Solar Philippines and ACEN have received increased investor support among other energy firms.

ACEN, which has operations of more than 600 megawatts (MW) of solar and wind power generation capacity across the country, also owns a 1,087 MW attributable operating portfolio internationally.

On the other hand, Solar Philippines, which accelerated from a start-up in the field, could eventually join the global conglomerate lineup in the future, the report said.