Leading energy player Aboitiz Power Corporation has inked a memorandum of understanding (MOU) with the Japan Bank for International Cooperation (JBIC) so it can explore ‘transition financing package for its planned power projects – primarily for targeted developments in the renewable energy (RE) sphere.

The deal was signed on October 25 this year between  JBIC Governor Hayashi Nobumitsu and Aboitiz Power President and CEO Emmanuel V. Rubio.

According to Rubio, the deal with the Japanese multilateral lending institution is “about exploring options for competitive financing for energy transition projects.”

Aboitiz Power has its own line-up of energy projects that it is keenly wishing to be covered by ‘transition financing’ – and JBIC could be one global institution that could aptly help the company on such aspiration.

“That’s the intention of the MOU -- to explore frameworks and options for competitive financing of projects,” Rubio stressed.

Aboitiz Power has been re-shaping its investment terrain for new builds – with it casting capacity addition of roughly 4,000 megawatts of RE installations by the turn of the decade, to become part of the company’s overall target to rebalance its portfolio toward cleaner energy technologies.

The parties have not specified any projects being lined up for the targeted collaboration yet; and there is no particular financing package or credit facility currently being negotiated on – although Aboitiz Power has hinted on its planned ventures on RE, liquefied natural gas (LNG) and other technology deployments.

Rubio emphasized “our collaboration with the Japan Bank for International Cooperation revolves around a collective aspiration to help drive environmental sustainability and a just energy transition.”

He added “with JBIC’s support, we can strengthen our efforts to reduce emissions, introduce cutting-edge technologies like LNG, and help accelerate renewable energy development in the Philippines.”

JBIC, for its part, has specifically cited Aboitiz Power’s drive for decarbonization, emphasizing that while the Filipino firm is utilizing LNG “as a power source in the transition period, it aims to raise the percentage of renewable energy to the total energy generated from the 20% level as of 2022 to 50% by 2030.”

The Japanese lending firm noted “the purpose of the MOU is to promote Aboitiz Power and Japanese companies’ collaborative projects in the Philippines by strengthening the cooperation between JBIC and Aboitiz Power in the area of energy.”