Mainstream and AboitizPower enter joint venture for initial 90 MW wind project

The JV, which harnesses the combination of Mainstream’s global renewables development expertise and track record and AboitizPower’s extensive local presence and business network, will play a leading role in the Philippine government’s drive to increase renewable generation in the country via the rapid expansion of its portfolio of wind and solar assets.

AboitizPower has a stated goal to grow its renewables portfolio to 4600 MW by the end of the decade, and Mainstream is contributing to this via the Libmanan onshore wind project as well as a future development pipeline.

The 90 MW Libmanan onshore wind project is expected to reach financial close in 2023 and achieve commercial operations in 2025.

Mary Quaney, Chief Executive Officer of Mainstream Renewable Power, said: “We are delighted to be entering this JV with AboitizPower to deliver our first wind farm in the Philippines.

“This is one of Mainstream’s priority markets in the region, and we are committed to working in partnership with AboitizPower to support the Philippines’ ambitious target to cut its greenhouse gas (GHG) emissions by 75% by 2030.”

Emmanuel V. Rubio, Chief Executive Officer of AboitizPower, said: “This JV marks AboitizPower’s first foray into wind energy and underscores our aspiration to be a strong renewable energy partner. We are optimistic about the realisation of our renewable ambitions over the next decade, both domestically and internationally, while we continue to serve the critical baseload needs of the Philippine energy system.”

James Arnold Villaroman, Chief Executive Officer of ARI, said: “We are excited to partner with Mainstream, given our shared aspiration of growing the Philippine renewable energy generation portfolio in the years to come. This is the beginning of an exciting new era for AboitizPower, through ARI, as we take a key step towards our 10-year strategy of growing our renewable energy capacity and striking a 50:50 balance between our renewable and thermal portfolios.”

The JV, which is subject to regulatory approvals, is being delivered through an investment agreement for ARI’s proposed acquisition of a 60% stake in the Libmanan onshore wind project, which Mainstream has been developing since 2017 with its local partner.

Early this month, in a bid to draw more investors and end users in renewable energy, the Department of Energy approved an increase in the yearly renewable portfolio standards from 1% to 2.5%.

The Philippine government’s ambition is to generate 35% of all its electricity from renewables by 2030, and 50% by 2040. The country has multiple strategies to achieve its targets, including the Green Energy Option Programme (GEOP), Renewable Portfolio Standard (RPS), and the recently launched Green Energy Auction Programme (GEAP). Renewable energy expansion is expected to play an important role in meeting the Philippines’ growing economy and electricity demand.

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