By Manila Standard Business – March 17, 2018 at 06:45 pm
The Philippines’ booming energy industry is expected to get more foreign investors as the government ramps up a non‐traditional trade and investments promotion drive in the upcoming Hannover Messe in Hannover, Germany, on April 23 to 27, 2018.
The Department of Trade and Industry‐Center for International Trade Expositions and Missions is keen on attracting more investments for the country’s energy sector through export promotion activities in line with the Philippine Energy Plan 2012‐2030 of the government.
“We are elevating trade and investment promotion to a whole new level as we tap our partners for inclusive growth from the energy sector in a collective participation in this world’s most important industrial trade show and the largest capital goods exhibition in Germany,” said Nora Terrado, DTI Undersecretary for Trade and Investments Promotion Group.
Hannover Messe covers the complete picture of the world’s five industrial value—energy; integrated automation, motion and drivers; industrial supply; research and technology; and digital factory.
In 2017, the Germany‐based event gathered 6,500 companies from over 70 nations and was attended by 225,000 visitors and trade buyers across the world, generating around 5.6 million partnerships, business models and other contacts.
“As a melting pot of the global industrial value chain, Hannover Messe is the prime platform to drumbeat and build up investor confidence on the Philippines as a global powerhouse of renewable energy and other relevant technologies,” said Terrado.
Aside from renewable energy, DTI‐Citem also seeks to secure investments for local stakeholders in energy efficiency, conservation and transmission in the Philippines.
With the theme ‘Solutions for the New Era of Energy,’ the energy sector of Hannover Messe 2018 will focus on innovative technologies for electric power systems to become more flexible, to intelligently connect sectors and to engage new market participants amid an increasingly decentralized global energy chain.
In preparation for Hannover Messe, Terrado said they are gathering a pool of 15 Philippine companies that represent the nation’s best foot forward in terms of energy systems, technology, services and other industrial goods.
“Through this synergy among stakeholders, we will be able to seal partnerships with foreign investors and mobilize much‐needed funding and infrastructure to our energy players,” said Terrado.
“It will also give motivation to our local energy stakeholders to fast‐track efforts towards the mainstream use of renewable energy sources in the Philippines as more and more countries have started their industrial shift towards more sustainable power sources,” she said.
Part of DTI‐Citem’s energy investment drive is to arrange business—matching meetings between Philippine renewable energy companies to potential investors, technology adapters, developers, suppliers and other local energy stakeholders in the international trade show.
Renewable energy is defined as energy generated from natural processes that are continuously replenished which includes biomass, geothermal, hydro, wind, solar and ocean energy under the PEP 2012‐2030. It has been identified in the Investment Priority Plan 2017‐2019 as an emerging sector that needs government intervention particularly in export promotion.
Based on Department of Energy Philippine Power Situation Report, the country’s total power capacity in 2016 is at 53.16 million tons of oil equivalent with renewable energy occupying the second largest share at 32.5 percent, next to coal at 34.6 percent. The top renewable energy sources in the Philippines are hydropower (16.9 percent) and geothermal (8.9 percent), followed by biomass, wind and solar (6.6 percent).
The Energy Department also said the Philippines has an operational wind energy of 426 megawatts, one of the highest in Southeast Asia. The country enjoys this distinction because of its strategic location where international financial institutions like the World Bank and Asian Development Bank have regional offices. These international FIs provide loans to countries of the world for capital programs relating to social and economic development.
According to the International Geothermal Association, the Philippines also ranks second to the United States in producing geothermal energy worldwide.
Based on Bloomberg’s New Energy Finance ‘New Energy Outlook’ report, solar and wind power generation will dominate the future of electricity where 72 percent of the $10.2 trillion spent on new power generation and installation worldwide between 2017 to 2040 will be invested in new solar photovoltaic plants and wind parks.
The report also said that the increase of wind capacity will contribute to a higher share of renewable energy in the overall energy mix, thus, increasing energy security and reducing carbon dioxide emission. Unlike other types of power plants, wind energy emits no air pollutants or greenhouse gases.