The renewable energy market is set to make strides under a supportive administration alongside a more lenient economic backdrop that will make loans cheaper for developers, according to an energy stakeholder.
Miguel Mapa, founder and chief executive of Nextnorth Holdings Corp., said that while the sector continued to deal with “familiar challenges” such as grid connectivity, capital funding and permitting woes, his bullishness about the industry’s growth remained.
“We are optimistic as we observe significant and continuous improvements that are paving the way for a strong renewable energy industry,” he told Inquirer.
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Nextnorth currently has 472 megawatts (MW) of capacity under development, including a 440-MW solar power project in Ilagan City, Isabela.
He took note of the government’s “supportive policies and clear commitment” to renewables. The Philippines is aiming to increase the share of renewable energy in the power generation mix to 35 percent by 2030 from the current 22 percent.
“We all welcome the administration’s directives to the grid operator to reduce application bottlenecks and finish projects on time,” he said.
Nextnorth also lauded the Bangko Sentral ng Pilipinas’ decision to finally ease interest rates.
“On the financial front, the recent interest rate cut by the [BSP] points to a downward trend in capital costs, further bolstering our optimism,” Mapa said.
He also cited the opening of the industry to full foreign ownership as well as the Department of Energy’s virtual one-stop shop system, the online platform for permits’ processing of energy projects.