The joint venture aims to complete 1 GW of projects by 2028, with the goal of eventually contributing up to 3 GW to the country’s renewable capacity by launching a series of projects on the islands of Luzon and Visayas. Shell has a strong history in the country, thanks to its offshore oil and gas operations as well as its retail electricity supply arm, Shell Energy Philippines.
In recent years, the Philippines has become a more appealing market for renewable energy in Southeast Asia, owing primarily to prompt regulatory action to improve the country’s energy matrix. The country’s reliance on fossil fuels has strained its economy and power supply mix since the emergence of the COVID-19 pandemic, resulting in a dramatic increase in rolling blackouts and a drop in the country’s annual GDP growth rate. In Jul’21, high-ranking administrative officials announced bipartisan support for legislation aimed at stimulating the domestic energy transition. The country’s current goal is to increase the share of renewables in its power mix to 35% by 2030 and 50% by 2040, which would require the addition of 73.9 GW of renewable capacity over the next two decades.