British Ambassador to the Philippines Laure Beaufils visited on August 16 the on-going construction of Citicore Renewable Energy Corporation's (Crec) largest solar power plant in Batangas – the biggest in its portfolio, which will be constructed in two phases over two years. The solar plant is expected to provide a much-needed boost to the Luzon Grid after its completion.
Following the UK government's investment in the initial public offering (IPO) of Crec on the Philippine Stock Exchange, Inc. (PSE), the visit provided an opportunity to witness firsthand the impressive scale of Crec's solar plant operation. Collaborations such as this underscores UK's ongoing commitment to supporting global sustainability goals and fostering strong partnerships in public markets to supporting clean energy transitions in emerging markets like the Philippines.
Mobilist invested alongside several private sector, with the total IPO valued at approximately $86 million. Crec is the first renewable energy generator to list on the PSE this year. In July 2023, Mobilist and the PSE established a partnership to ensure greater investment in sustainable development in the Philippines via products listed on the PSE.
Crec is the second-largest solar energy generator in the Philippines in terms of installed solar capacity, and had ten operating solar projects with a combined gross installed capacity of 285.1MW as of December 31, 2023. The company estimates that its 20-pipeline solar and wind projects, in various stages of advanced development and ready-to-build/under-construction phases, will reduce carbon emissions by an aggregate of approximately 3.3 million tons upon completion over the next three years.
Crec will utilize the listing proceeds to fund capital expenditures and pipeline development for solar energy plants and battery energy storage systems, among others. According to the Philippine Department of Energy, the Philippines needs $120 billion in investment by 2040 to realize its untapped renewable energy potential.
Ambassador Beaufils, said, "I am thrilled to see this tangible demonstration of UK-Philippines climate action partnership. Through the UK Government's investment in Citicore Renewable Energy Corporation, the UK is further supporting the Philippines in realizing its energy transition."
"Our $12.5 million investment in Crec will help catalyze investments towards an approximately 1GW of additional solar energy capacity per year over the next five years in the country, making clean, reliable and affordable energy a reality for people in the Philippines," she added.
On the other hand, Oliver Tan, president and CEO of Crec, shared, "Citicore Renewable Energy Corporation is honored to be the maiden (IPO) investment of Mobilist in the Philippines. This landmark investment in the Crec IPO, Mobilist's first IPO investment in the Philippines, signals the strong support and confidence of the UK in the Philippines' energy transition plan, with Crec at the forefront of this renewable energy revolution with its development and operation of various renewable platforms."
"Mobilist is proud to advance our partnership with the PSE by participating in an IPO we believe will generate important learnings within the domestic market to pave the way for other businesses devoted to enabling a secure, clean and expanding energy supply for the people of the Philippines. Crec's listing demonstrates that public markets can finance sustainable development at scale and potentially play a powerful role in financing the energy transition in the Philippines and other emerging markets," added Ross Ferguson, FCDO Mobilist program lead.
Mobilist is an intervention under the wider British Investment Partnership (BIP), the initiative by which the UK will deliver packages of finance and technical assistance to support infrastructure development and green transition in the Philippines and across the Southeast Asia region. BIP has backed investments of £32 million in hydro and solar projects in the Philippines and has seen private investments in biomass of $350 million.
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