MANILA -Portugal is keen on investing in the Philippines’ renewable energy (RE) sector in an effort to expand its footprint in Southeast Asia, the Department of Energy (DOE) said on Tuesday.
According to the DOE, Portuguese electric utility firm Energias de Portugal (EDP) and its RE unit, EDP Renewables (EDPR), expressed their interest in boosting the Philippines’ renewable energy development plans during Foreign Minister João Cravinho’s state visit last week.
“Portugal, as an early starter in RE, has similar challenges with the Philippines and is interested in the DOE’s approach in developing and utilizing the country’s RE sources. Potential areas of cooperation include RE development and alternative fuels,” the DOE said in a statement.
Cravinho did not disclose the details of their planned investment, but said he would “communicate the outcomes” of his state visit to João Pedro Matos Fernandes, Portugal’s minister for environment and climate action.
The DOE emphasized that EDP generated 74 percent of its energy requirements from renewable sources and aimed to be “100-percent green” by the end of the decade.
EDPR, on the other hand, is the world’s fourth largest wind energy producer, according to the agency. It currently manages and operates EDP’s renewable assets.
In 2021, EDP closed its coal-fired power plant in Sines, completing the country’s exit from coal.
For his part, Energy Secretary Raphael Lotilla said he had raised offshore wind and floating solar energy as among the potential areas for development with Portugal.
“The Secretary also expressed his interest in the experience of Portugal in repurposing and incentivizing the transition of coal power plants by using alternative fuels such as co-firing with hydrogen or ammonia,” the DOE said.
A number of private sector developers, including Aboitiz Power Corp., have previously expressed their interest in co-firing their coal plants with ammonia in a bid to reduce carbon emissions.
The challenge, however, was that the cost per metric ton of ammonia, which is produced through coal gasification, is currently at least twice the price of coal, according to AboitizPower.
The country’s power mix is still largely composed of coal at nearly 60 percent, while renewables only account for 22 percent.
The DOE aims to raise the share of renewables to 35 percent by 2030 and 50 percent by 2040.