PH pivots to wind after solar stalls

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• Can the Philippines attract better offshore wind players after its failed solar bets?
• From the archive: As data centers strain power grids, startups race to become part of the solution
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Hello reader,

If you’re reading this from Southeast Asia, chances are you’re in a room with the air conditioner on full blast – or else you’ve got sweat dripping down your back. Indeed, summer is here.

Considering the ongoing conflict in the Middle East, the Philippines would have to prepare for an uptick of at least 16% in its electricity bills in the next two months, according to the country’s Department of Energy. And since the Philippines relies heavily on fossil fuel power plants and imports most of its fuel, any price change in the world market is immediately reflected in people’s energy bills.

Since 2022, the country has been implementing a yearly energy auction where public developers are asked to bid the lowest price they can offer to build renewable energy projects such as solar and wind farms. In turn, the government ensures the projects are utilized.

In our top story today, I dive deeper into why the first round of auctions led to “zombie” projects and how the government aims to lock in “serious” bidders for this year’s auction. Stakeholders believe these projects also demand a wider variety of funders, aside from the typical sources of financing like local and regional banks.

This then raises the question: Will climate-focused family offices or VCs start funneling capital into this space? Some US pension funds already do. The bigger concern is how – and from where – the money will come in this part of the world.

Either way, the heat isn’t going anywhere. Someone’s going to have to fund the escape.

Elyssa Lopez, journalist

Top Story

Killing ‘zombie’ projects: PH bets big on offshore wind

According to World Bank estimates, the Philippines has the potential to produce 178 GW from offshore wind projects. / Photo credit: Global Wind Energy Council

A 400-million-peso fine has cast a shadow over the Philippines’ first renewable energy auction.

Now, as the country opens bids for offshore wind, it’s trying to filter for developers and capital that can actually follow through.

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