President Ferdinand R. Marcos Jr. holds a bilateral meeting with Malaysian Prime Minister Anwar Ibrahim during his visit to Kuala Lumpur, Malaysia. The President’s visit, from July 25 to 27, had the primary objective of fortifying bilateral ties between the two countries. During the visit, high-level discussions centered on cultivating robust partnerships in crucial areas of interest, notably agriculture, food security, tourism, the digital economy, and the welfare of overseas Filipinos. (Presidential Communications Office photo).
QUEZON CITY, (PIA) -- President Ferdinand R. Marcos Jr.'s recent state visit to Malaysia has secured the Philippines USD50 million (P2.74 billion) in funding for renewable energy (RE) projects.
In an announcement made on Sunday, New Wave Strategic Holdings, Inc., a Philippine-based private equity investor, and its partner, Emissary Capital Partners Sdn Bhd, revealed that their investments could generate an additional 1,000 megawatts (MW) of RE capacity for the Philippines.
“New Wave and Emissary Capital have identified the early stages of renewable energy projects as the most challenging for companies to raise capital due to the perceived risks,” the companies said.
Emissary Capital Partners is a Malaysian investment firm with government-backed funds. The USD50 million fund's primary objective is to support companies investing in the RE sector, electric vehicle industry, clean energy, and smart grid in the Philippines.
According to the two companies, securing capital for early-stage renewable energy projects can be particularly challenging due to perceived risks.
The initial projects supported by the funding will focus on solar and wind farms in Northern Luzon.
Enrique Gonzalez, director of New Wave, said the importance of developing a more mature ecosystem in the Philippines with various capital providers across different stages of the investment cycle.
“It is important that the Philippines develops a more mature eco-system with capital providers across various stages of the investment cycle. With Emissary’s entry into the Philippines, we are providing more founders and entrepreneurs access to growth capital as well as a regional network that can help them expand across SEA (Southeast Asia),” Gonzalez said.
The funding is expected to help the Philippine government achieve its goal of sourcing 35 percent of its energy from renewable sources by 2030 and up to 50 percent by 2040. As of 2022, RE accounted for 22.8 percent of the country's energy mix.
Emissary Capital Partners' Erman Akinci, for his part, expressed optimism about the Philippines' potential as the most exciting RE market in the region for the next five to ten years, especially since the government allowed 100 percent foreign ownership in RE projects last year.
He emphasized the importance of clean energy as a local and regional commitment among ASEAN neighbors, believing that cross-border investment and trade will benefit the entire region and help ASEAN achieve its collective goals.
It's worth noting that before this collaboration, the two investment firms had previously partnered to launch a USD50 million fund for tech startups in ASEAN member states.
During Pres. Marcos' official trip to Kuala Lumpur from July 25 to 27, Malacañang had reported that the president received investment pledges worth USD285 million. (PIA-NCR)