The Philippines is aiming to secure $25 million from the Coalition for Emerging Market Infrastructure Investment (CEMII) to support the $500 million needed for its renewable energy transition.
At the EJAP-AboitizPower Renewable Energy Forum on Friday, Energy Secretary Raphael Perpetuo Lotilla said the aggressive efforts to achieve an equitable energy transition play an advantageous role in helping stir investors’ confidence in the country’s power sector.
CEMII, composed of a group of global investors, manages a $25-billion fund for energy investments in IPEF economies.
“If we can get a total of $25-billion, that’s better. We should aspire for that,” Lotilla said.
“For the entire plan, we are looking at hundreds of billions of dollars. Our energy sector is not government-owned, so it is not going to be cheap. It will require up to $500 billion of investments from both public and private sectors,” he added.
Lotilla emphasized that with this substantial capital, “we can retrofit or phase out fossil fuel plants.”
RE share being ramped up
The government aims to increase the renewable energy share in the country’s power mix to 35 percent by 2030 and 50 percent by 2050.
As of the end of 2023, renewable energy accounted for 29.7 percent of the country’s power grid, including sources such as hydro, geothermal, wind, biomass, and solar. However, coal still dominates the mix, making up 43.9 percent.
The Philippines was chosen by the CEMII as its initial focus market for energy infrastructure investment across the Indo-Pacific Economic Framework (IPEF).
CEMII was initially introduced at the IPEF Clean Economy Investor Forum in Singapore to support IPEF economies in achieving their economic development, human capital and sustainability objectives.
It also prioritizes the identification, promotion, and development of successful infrastructure projects throughout the region.
CEMII is convened by IP3 and co-chaired by Global Infrastructure Partners and includes prominent financing members such as Allied Climate Partners, BlackRock, Brookfield, GIC, the Rockefeller Foundation and Temasek.