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Business Times
3 days ago
- Business
- Business Times
Philippine energy giant Citicore Renewable eyes Cambodia, Myanmar after Pertamina deal
[SINGAPORE] Philippines-listed Citicore Renewable Energy (CREC) is making its regional play while the sun shines, powered by a recent tie-up with Indonesia's Pertamina that could spur future forays – and perhaps a secondary listing – in other South-east Asian markets. President and chief executive Oliver Tan of the home-grown pure-play renewable energy developer and operator told The Business Times that Indonesia was the first step towards regional expansion. 'In particular, we are looking at potential opportunities to build solar (facilities) in Indonesia and export to Singapore to power its green-energy data centre demand… maybe in the next two years,' said Tan, who is Filipino. CREC inked a US$120 million share subscription agreement with state-owned Pertamina's new and renewable energy unit in June – a courtship that began some 15 months before a closing was reached, said Tan. The Indonesian energy giant now holds a 20 per cent stake in the Philippine company, with its public float accounting for another 20 per cent and the remainder owned by parent company Citicore Power. Asked which country could be next, the chief executive said: 'Cambodia is exciting because of its strategic geographical location (in terms of the Asean power grid) and its land mass. Myanmar is also exciting.' A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Comparatively, property in Thailand is expensive because of how the country markets itself as a tourist destination, and hence, building solar facilities there could be relatively difficult, he added. Sun, sea, sky: Who's the cash cow? For now, CREC's solar assets are all within the Philippines. It boasts 10 operating utility-scale solar farms with a combined gross installed capacity of 285 megawatts across the three main island groups of the archipelago. Seven plants lie in the largest northernmost cluster of Luzon; two are in the central cluster of Visayas; and the remaining one is in the southern island group of Mindanao. A 25-megawatt-peak utility-scale solar photovoltaic power plant located in Silay, Negros Occidental. Two of CREC's 10 operating solar farms lie in the archipelago's central island cluster, Visayas. PHOTO: CITICORE RENEWABLE ENERGY Eight more utility-scale solar plants will be energised between now and December, which will bring CREC's total solar capacity to about 1,300 megawatts by the end of the year, said Tan. He added that the additional 1,000 megawatts CREC will switch on is backed by 20-year offtake contracts with the Philippine government, which derisks the project as a guaranteed buyer exists. This development is also in line with CREC's plan to build and energise 1,000 megawatts of solar power every year for the next five years. Work has already begun on its second batch, noted the chief executive. As for hydropower, CREC is currently developing a run-of-river facility targeted for completion three years from now. Its wind assets are also under construction. The group is developing four onshore wind power projects – comprising between seven and 40 turbines each – with a combined capacity of 360 megawatts. The smallest of the quartet is due for completion in end-2026. Asked about CREC's revenue breakdown, Tan said that, for the past three years, the group commanded a 20 per cent market share of total solar-generated power in the Philippines. As at end-2024, 11 per cent of the power generated from CREC's 10 operating utility-scale solar farms goes to the government and 84 per cent to commercial and industrial customers, he added. The remainder goes to the Philippine Wholesale Electricity Spot Market – a centralised electricity-trading venue where prices are determined based on actual use (demand) and availability (supply). CREC expects the government's share to increase to 90 per cent by the beginning of 2026, as six of the additional eight solar plants under construction are committed to the authority's Green Energy Auction Program. In the bigger picture, CREC's vision is to be able to provide round-the-clock, uninterrupted power supply from pure renewable energy – and the answer lies in energy storage systems, which will revolutionise the renewable energy sector, said Tan. 'We are about to switch on our first solar battery in end-July or early-August – that's the first in the Philippines,' noted the chief executive. 'We're already doing the testing, commissioning and all those protocols in order to dispatch electricity to the market. It's in the final stages of construction, punchlisting and testing,' he said. Growth drivers Tan told BT that national energy transition ambitions are a key growth driver for CREC. The Philippines has set a target of increasing the share of renewable energy in its power generation mix to 35 per cent by 2030 and 50 per cent by 2040, and is actively promoting electric vehicle (EV) adoption. 'We're still at an infant stage of EVs in the Philippines,' said Tan. 'If there is a wide embrace of EVs, that will also drive power demand.' The chief executive added that another new business segment with huge potential is agrosolar, which refers to the practice of growing crops or raising livestock underneath solar panels. A 7-megawatt-peak utility-scale solar photovoltaic power plant located in Tarlac City within the province of Tarlac, Luzon. CREC currently has seven operating plants in the largest northernmost island cluster of the Philippines. PHOTO: CITICORE RENEWABLE ENERGY Noting that one megawatt capacity requires roughly 10,000 square metres of land, Tan said: 'We have huge tracts of agricultural land on which we're already doing pilots to plant crops.' He continued: 'We basically use the land two times to generate electricity and food. That's going to be a big, big opportunity.' Domestic growth engines apart, the Asean Power Grid is also another potential driver. 'It has been there for the last two or three decades, but now, it's becoming more realistic, although the Philippines still has to address its main transmission backbone first,' admitted Tan. Going beyond organic growth, there exists room for consolidation in the 'really fragmented' domestic solar market, continued the chief executive. 'There are many small developers which we can acquire,' added Tan, who told BT that CREC was in the midst of reviewing three potential acquisitions, but noted that these were on a project basis. He explained that in the Philippines, the only companies with a portfolio comprising many projects that are pure solar are Citicore, Acen and Meralco. 'The rest are really per project,' he continued. 'So if you are to consolidate, you have to acquire on a per-project basis. You cannot acquire a company with many projects.' Tan added that the current round of acquisitions are expected to be completed before year-end. A country boy with a city dream CREC listed on the Philippine Stock Exchange (PSE) mainboard in June 2024, raising some 5.3 billion Philippine pesos. In the one-year span, its market capitalisation of 24.1 billion Philippine pesos at the time of listing almost doubled to 46.2 billion Philippine pesos (S$1.04 billion) as at Friday (Jul 25). This is the third initial public offering Tan has taken to market since he joined Megawide Construction in 2009. The mainboard-listed construction and infrastructure conglomerate is a sister company of Citicore Power, the parent company of CREC. Megawide listed on the PSE in 2011, followed by Citicore Real Estate Investment Trust – sponsored by CREC – in 2022, and CREC itself in 2024. CREC's vision is to be able to provide round-the-clock, uninterrupted power supply, says president and chief executive Oliver Tan. PHOTO: CITICORE RENEWABLE ENERGY On the listings, Tan said: 'We have bold dreams, but we need capital to fuel our dreams.' He added: 'We're country boys who came from the province (with) big dreams in a big city called Metro Manila – first generation, chasing our dreams.' Asked about the likelihood of a secondary listing in Singapore, which Tan initially brought up in jest during the interview, the chief executive remained coy and replied: 'That's an option.' He conceded that Singapore would align with CREC's regional play, but maintained: 'We're considering. Our DNA – we're dreamers. We dream big, which means when we look at things, all (options) can be considered.'
Yahoo
03-07-2025
- Business
- Yahoo
Citicore seeks to boost solar capacity to 2.56GW by 2026
Philippines-based Citicore Renewable Energy is planning to expand its installed solar capacity from 0.29GW to 2.56GW by 2026. This ambitious plan was outlined by CEO Oliver Tan during an interview with Reuters. Currently trailing behind ACEN as one of the largest solar providers in the country, Citicore aims to add 1GW of capacity by the end of 2025 and a further 1.17GW in 2026. The company's growth strategy aligns with national efforts to decarbonise the Philippines' grid, a notable shift given that it had Southeast Asia's most coal-dependent grid as recently as 2023. In a significant move in early 2025, PT Pertamina's renewable energy division acquired a 20% stake in Citicore, signalling strong support for renewable initiatives within Southeast Asia. The push for renewables has already led to record-breaking increases, with government data revealing that renewable capacity surged 10% or 0.8GW in 2024 alone, reaching a total of 9.2GW, a figure higher than that of the previous three years combined. According to Tan, six new projects are expected south of Manila in 2025 while three others will be developed further north and another aims to meet demand in the Visayas region. This surge from Citicore is projected to raise national installed solar capacities by almost 50% more than the levels recorded above 2GW in 2024. Tan emphasised that these expansions would put them well on their way towards achieving their goal of 5GW of solar capacity and an additional wind energy target amounting to 0.36GW by respective deadlines set for both sectors within this decade. He warned that such aggressive state-backed initiatives might limit private sector opportunities within corporate power supply agreements throughout the renewables industry: "We are likely to see the share of corporate power purchase agreements shrink this year as the government increases tendering of projects supplying the grid.' "Citicore seeks to boost solar capacity to 2.56GW by 2026" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
02-07-2025
- Business
- Reuters
Philippines' Citicore expects nine-fold increase in solar capacity by 2026, CEO says
SINGAPORE, July 2 (Reuters) - Philippines-based Citicore Renewable Energy Corp ( opens new tab expects a nearly nine-fold increase in its solar installed capacity to about 2.56 gigawatts by 2026, Chief Executive Oliver Tan told Reuters in an interview on Wednesday. One of the Philippines' largest solar power producers behind ACEN Corp ( opens new tab, Citicore will add 1 GW of capacity by the end of this year, and a further 1.17 GW in 2026, Tan said. The company, in which the renewable energy arm of Indonesia's state-owned oil producer PT Pertamina bought a 20% stake this year, currently has 0.29 GW of installed solar capacity. Citicore's solar expansion plans are in line with the Philippines' push to decarbonise its grid, after years of slow progress made the Southeast Asian nation's grid the region's most coal-dependent in 2023, surpassing Indonesia. The Philippines' renewable capacity increased by a record 0.8 GW, or nearly 10%, to 9.2 GW in 2024, government data showed, with installations in the last year surpassing green capacity installed over the preceding three years combined. Six of Citicore's solar projects that will come online this year will be south of the capital Manila, while three will be in the country's north and one of them will supply the demand-heavy Visayas region, Tan said. The company's expected additions this year alone will boost the Philippines' installed solar capacity by nearly half from 2024 levels of over 2 GW. Solar currently accounts for about 3% of power generated in the country of over 115 million people, data from energy think-tank Ember showed, which the country wants to increase to 5.6% by 2030. Tan said the 2.17 GW of additions from now through 2026 would put the company on track to achieve its 2030 solar capacity target of 5 GW. It is also targetting 0.36 GW of wind capacity additions by 2027. The aggressive state push is likely to crowd out private power supply deals with corporations in the renewable sector this decade, Tan said. "We are likely to see the share of corporate power purchase agreements shrink this year as the government increases tendering of projects supplying the grid," he said.
GMA Network
19-06-2025
- Business
- GMA Network
Renewable energy firm Citicore inks $120-M deal with Indonesia's Pertamina NRE
Pertamina executives flank Indonesian Ambassador to the Philippines Agus Widjojo (fifth from left) in Jakarta on June 19, 2025. Photo: CREC Citicore Renewable Energy Corp. (CREC) on Thursday said inked a $120-million strategic partnership agreement with Indonesia's state-owned Pertamina New & Renewable Energy (NRE), which includes a share subscription and a joint exploration of renewable energy (RE) investments in Indonesia. Under the agreement, Pertamina NRE will subscribe to a 20% interest in CREC, and the two parties will explore RE investments in Indonesia including the potential development of solar and wind power projects, and collaboration related to carbon credit development and trading. 'With Pertamina NRE, we can view the energy transition through a different lens and create responsive, collaborative solutions for clean energy in the Philippines and Indonesia,' CREC president and chief executive officer Oliver Tan said. CREC, through its subsidiaries and joint ventures, manages a diversified portfolio of renewable energy generation projects, and is engaged in power project development operations, along with participating in retail electricity supply. Pertima NRE, fully owned by Indonesia's state-owned energy corporation Pertamina, is responsible for managing all power generation and new and renewable energy development, focusing on gas-based power generation, geothermal energy, and other renewable sources such as solar and wind power. 'We are leading the charge in Indonesia's renewable energy transition, and our partnership with Citicore, with their expertise and experience in RE development, is a way to elevate our capability in RE development, as well as a big step in accelerating our clean energy goals,' Pertamina NRE chief executive officer John Anis said. 'In the same light, we are committed to support Citicore and the Philippines with our own expertise, technology, and best practices,' he added. — Jon Viktor D. Cabuenas/BM, GMA Integrated News
