A standout feature of the Philippines is the emergence of Philippine Stock Exchange-listed renewables developers and operators, including ACEN Corporation, Citicore Energy REIT Corp. (CREIT), and Solar Philippines.
To grow faster and attract even more financiers, companies should focus further on renewables and execute their business plans.
Investors are willing to reward firms which plan to grow in the field of renewables and can execute their plans.
The Philippines as home to innovative models in the renewable energy space. It reviews the country’s renewable energy players – including ACEN, CREC, and Solar Philippines – in terms of capacity, plans, business model innovations, and how some have differentiated themselves from others to raise more capital and accelerate renewables growth.
Solar Philippines, operator of 183MW of solar generating capacity, has rapidly moved from being a start-up in renewables in 2013 to joining a global conglomerate. Its listed entity, SP New Energy Corporation, raised more than US$425 million in the second quarter by selling a 43% stake to Metro Pacific Investments Corporation (MPIC), whose purchase appears to validate Solar Philippines’ focused growth strategy. MPIC is itself in a takeover bid by Japan’s Mitsui & Co.
CREC is a leading solar player domestically, with an installed generating capacity of 163MW and more than 200MW of renewable energy projects in development. The firm built CREIT, the Philippines’ first renewable energy real estate investment trust (REIT), by spinning off one solar plant of 22MW and the land on which a set of its solar plants were located. The REIT is an innovative structure that frees up the balance sheet and raises funding while offering a differentiated avenue of investment for investors.
First Gen has shown a willingness to explore innovative options. To raise capital for growth in renewables, it has a successful record of accomplishment of partnering with international investors and infrastructure players.
On the part of the Philippine government, it runs a Green Energy Auction Program to generate maximum tariffs via competitive bidding.