New Wave Strategic Holdings Inc., a subsidiary of IP E-Game Ventures Inc. and Emissary Capital Partners Sdn Bhd, a Malaysian government-backed funding entity, proposes a $50- million investment in the country’s renewable energy (RE) sector.
The $50 million investment fund also looks to finance the electric vehicle, clean energy, and smart grid industries.
The investment is seen to generate a bankable capacity of around 1,000 megawatts (MW). Additionally, its establishment could also bring an additional foreign investment of $1.5 billion into the country to support the construction and operation of targeted sites.
“It is important that the Philippines develops a more mature eco-system with capital providers across various stages of the investment cycle. With Emissary’s entry into the Philippines, we are providing more founders and entrepreneurs access to growth capital, as well as a regional network that can help them expand across SEA (Southeast Asia),” New Wave director Enrique Gonzalez said.
New Wave and Emissary Capital recognized that the initial phases of RE projects are often the most challenging for companies due to perceived risks. However, providing developers with reserve funds and value-added involvement in pre-development work will yield an attractive return on investment.
For Emissary Capital partner Erman Akinci, the Philippines is on the verge of entering the “most exciting” phase of the RE market in the next five to ten years. This development came after the government’s decision to allow 100% foreign ownership in RE projects last year.
“Clean energy is both a local and regional commitment amongst ASEAN neighbors. We believe cross-border investment and trade will ultimately benefit the entire region and help ASEAN meet its collective goals. We hope our fund can contribute to this goal as well as generate healthy returns,” Akinci said.
The investment of New Wave and Emissary Capital would also promote the government’s goal of integrating RE into the energy mix to 35% by 2030 and 50% by 2040, the companies noted.