China to join nuclear, RE euphoria in PH
By MYRNA M. VELASCO
China is the latest country to join the renewed investment euphoria for nuclear power technology in the Philippine energy sector, as prompted by the recent state visit of President Ferdinand Marcos Jr. in that Asian super power nation.
According to Energy Secretary Raphael P.M. Lotilla, the interests of the Chinese investors are centered both on conventional nuclear power facility as well as on the deployment of small modular reactor (SMR) technology.
With the enthusiasm on nuclear power venture shown by these investors, Lotilla indicated “it is important for us to give also the Chinese investors’ interest in this particular area.”
Nuclear is poised as the "next exciting investment space’"in the Philippine energy sector – that even the domestic big players are now giving this technology utilization a sharper focus.
Of the earlier reported nine Chinese energy firms which pledged up to $13.76 billion worth of investments to the Philippines, one of them is China General Nuclear Power Group (CGN), which is a state-owned Chinese company.
Apart from nuclear, the Chinese firms are similarly setting their sights on renewable energy (RE) installations. electric vehicles, hydrogen as well as rollout of battery energy storage systems (BESS), including those for the off-grid areas.
“These Chinese energy companies have responded positively to the country's policy directions on renewable energy,” Lotilla noted.
In the past Duterte administration, many Chinese companies also exhibited keen interest to invest in the Philippine energy sector; but no tangible megawatts had been concretized until the end of his reign.
The other Chinese companies which joined a roundtable discussion arranged by the Philippine government and had been counted as interested investors were: China Energy International Group Co. Ltd (Energy China); China Huadian Engineering Co., Ltd (CHEC); China Machinery Engineering Corporation (CMEC); China Power International Development (CPID) Ltd; China Tianying, Inc. (CNTY); Dajin Heavy Industry Co., Ltd (DHI); Mingyang Smart Energy Group, Ltd. and SPIC Guangxi Electric Power Co., Ltd, which is a subsidiary and a secondary unit of State Power Investment Corporation Limited or SPIC.
The energy chief, nevertheless, qualified that many of the interested Chinese firms are not exactly new players in the Philippine energy sector – with some of them like Energy China, SPIC and CPID, had already been in the country for years or even decades undertaking projects, primarily as engineering, procurement and construction (EPC) contractor for various developments in the power supply chain.
The DOE particularly stated that CPID has been “involved in the development of solar, wind, hydroelectric, geothermal and biomass power.”
For onward RE investments in the Philippines, CPID is eyeing to set up local entities as its corporate vehicles for the targeted ventures, a statement from the energy department has specified.
The other Chinese companies, the DOE said, are likewise enticed to inject capital into energy storage, hydrogen, green electric transportation as well as on the rollout of integrated smart energy systems.
Lotilla emphasized the Chinese firms are “upbeat with our policy reforms and directions on RE, especially on the opening of 100-percent foreign ownership on wind and solar projects.”
To whet the appetite of these Chinese firms, the DOE secretary conveyed "I have now instructed our Renewable Energy Management Bureau (REMB) and Investment Promotions Office (IPO) to start communicating with them and provide the full support to hasten this particular cooperation between the Philippines and China.”