Shell has signed a collaboration agreement with Nickel Asia's renewable energy subsidiary, Emerging Power (EPI), to jointly develop, own, operate, and maintain renewable energy assets. The JV 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. The venture will concentrate on utility-scale solar PV while also looking into onshore wind and energy storage systems. According to industry estimates, 1 GW of solar PV can power the annual daytime consumption of more than 1.2 million homes in the country.
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. Meanwhile, in recent years, EPI has aggressively expanded its renewable energy portfolio in the country. The company currently operates a 100MW solar farm in Bataan and is working on pilot geothermal projects in Mindoro and Biliran.
In recent years, the Philippines has become a more appealing market for renewable energy in South East 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. Chevron, wpd, Macquarie's GIG-owned Blueleaf Energy, and AES are among the international investors who have announced partnerships to pursue onshore wind, geothermal, and utility-scale solar projects in the country in recent years.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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