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May 27, 2024

IFC studying renewable energy as base load power in Phl

The International Finance Corp. (IFC) seeks to validate the view that renewable energy sources such as wind or solar can be used as commercial alternative to fossil fuel-based power prevalent in the Philippines at the moment.

It signed an agreement with Aboitiz Power Corp. (AboitizPower) to determine with certainty that a mix of technologies can be harvested in making alternative sources as base load power in the country.

The IFC and AboitizPower are conducting an in-depth study proving that such a source is commercial enough to be sent to the power grid and sold to consumers.

“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 CEO Emmanuel V. Rubio.

The IFC, the private investment arm of the World Bank, supports the government’s goal of supplying 35 percent of the nation’s power requirement from renewable energy sources by 2030 and to 50 percent by 2040.

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,” Liza Luv T. Montelibano, Chief Financial Officer of AboitizPower, said.

The IFC and AboitizPower have been partners back in 2007 when it financed the rehabilitation of the latter’s power plants.

AboitizPower has set aside P190 billion for its renewable energy projects and manages 3,700 megawatts of power from those facilities.