Shell Overseas Investments BV has entered into a joint venture (JV) partnership with the renewable energy subsidiary of Nickel Asia Corp (NAC), Emerging Power Inc (EPI) to co-develop 1 GW onshore renewable capacity in the Philippines by 2028, with focus on utility scale solar.
"Based on industry data, 1 GW of solar PV can supply the annual daytime consumption of over 1.2 million homes in the country. A Filipino household typically consumes 200 kWh a month," stated Shell. Initial projects will be located in Luzon and Visayas.
Beyond solar PV, the JV will also evaluate opportunities in onshore wind and energy storage systems. The aim for the JV is to jointly develop, own, operate and maintain these projects, scalable up to 3 GW.
Shell added that the JV is an opportunity to provide integrated value to customers through exploring synergies with retail electricity supplier Shell Energy Philippines, Inc.
"This partnership would allow both companies to boost the supply of renewable energy in the Philippines and is in line with NAC's vision to become the premier ESG investment in the country," said NAC President and CEO Martin Antonio G. Zamora.
Philippines is an exciting solar market for investors currently, and as Shell is already present in the fossil fuel domain here, it feels well prepared to tap the solar potential in this region. The Philippine's government targets to grow its total share of renewables in the national power mix to 35% by 2030, increasing it to 50% by 2040. Shell says this means 73.9 GW of renewable capacity by 2040.
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