Joseph Araneta Gamboa l November 13, 2024 l Business Mirror
THE future of energy is always in a state of flux, making it difficult to forecast what energy sources will be used. According to the Global Energy Monitor, the landscape of future energy mix is getting more complex, particularly in the Asean region, where solar and wind power rose by 20 percent in 2023 to reach a combined capacity of 28 gigawatts (GW).
While investments in renewable energy have been increasing, thermal power generation will not change in the short term as liquefied natural gas and green hydrogen are gaining traction as alternative fuels. In the Philippines, renewable energy plays a crucial role in the country’s energy mix since the government is actively pursuing a shift from fossil fuels to greener power sources.
Through the Renewable Energy Act of 2008 and its updated National Renewable Energy program, the Philippines aims to push the renewable share of the energy mix to 35 percent by 2030 and to 50 percent by 2040. Incentives such as tax exemptions, subsidies and the feed-in-tariff system support investors in the renewable sector.
Against this backdrop, the 2024 “Future Energy Summit” was held in Makati City last week. Delegates from across the value chain discussed the most updated challenges in the region and came up with practical solutions to navigate the increasingly integrated energy landscape through technological innovations and collective efforts.
Anqi Shi of S&P Global said the Asia Pacific region accounts for 60 percent of the global energy storage installations. She disclosed that capital expenditure for energy storage systems (ESS) is projected to fall by 37 percent between 2022 and 2025, driven by the decline in raw material prices and the improvement in design.
Based on S&P Global’s research findings, the popularity of standardized products has enabled certain system integrators to grow their market share in battery energy storage systems (BESS). The top two integrators in terms of global BESS capacity are Sungrow Power of China and Tesla Energy of America.
The BESS is a rapidly expanding form of energy storage in the Philippines due to its ability to provide grid stability, renewable integration and off-grid applications in our archipelago’s more than 7,000 islands. Several large BESS projects are in various stages of development by San Miguel Corp., Manila Electric Co. and Sungrow Philippines.
A global leader in renewable energy technology, Sungrow has pioneered sustainable power solutions since the late 1990s. It is recognized by S&P Global Commodity Insights as the world’s No. 1 manufacturer of photovoltaic (PV) inverters and was named by Bloomberg New Energy Finance as the most bankable Asian energy storage company.
Inverters are significant components in solar PV systems as they convert the direct current or DC electricity generated by solar panels into alternating current or AC electricity, which can be used by the power grid or local microgrid systems. Sungrow operates the largest PV inverter factory in the world with a global production capacity of 330 GW annually and another 25 GW under construction.
Sungrow’s clean energy projects are spread all over 170 countries, including the United Kingdom, the United States, Thailand, Egypt and the Netherlands. Its green power projects in the Philippines are located in the following provinces: Pangasinan; Pampanga; Cavite; Batangas; Nueva Ecija; Isabela; Tarlac; Bulacan; Camarines Sur; Rizal; Palawan; Ilocos Norte; Bataan; Zambales; Leyte; Bohol; Cebu; and, Negros Occidental.
Several large solar farms in Luzon and the Visayas have deployed Sungrow’s PV inverters–helping developers to optimize energy production and lower operational costs. Its BESS projects support energy storage during peak periods or when solar and wind generation drop. It has also partnered with local energy providers in deploying BESS systems that stabilize the grid by storing excess energy from renewable sources and releasing it when demand surges.
Such investments sustain the Philippines’s renewable energy goals and reduce dependence on imported fossil fuels while enhancing power access in off-grid areas that contribute to long-term economic and environmental benefits. ESS projects are critical for the country’s energy transition in achieving a renewable-centric grid and playing a pivotal role in providing reliable power for all Filipinos.
*** Joseph Gamboa is the vice-chair of the Finex Ethics Committee and director of Noble Asia Industrial Corp. The views expressed herein do not necessarily reflect the opinion of these institutions and the BusinessMirror. #FinexPhils www.finex.org.ph. Photo from Pinterest.