Mainstream Renewable Power (“Mainstream” or “the Company”), the global renewable energy company majority-owned by Aker Horizons, today announces the signing of a joint venture agreement with Aboitiz Power Corporation (“AboitizPower”), via its subsidiary Aboitiz Renewables, Inc. (“ARI”), one of the Philippines’ leading providers of renewable energy, to initially deliver the 90 MW Libmanan onshore wind project located in the Camarines Sur Province.
The joint venture, which harnesses the combination of Mainstream’s global renewables development expertise and track record and AboitizPower’s extensive local expertise 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 4,600 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.
“We are delighted to be entering this joint venture with AboitizPower to deliver our first wind farm in the Philippines,” said Mary Quaney, Chief Executive Officer of Mainstream Renewable Power. “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 emissions by 75 percent by 2030.”
The joint venture, which is subject to regulatory approvals, is being delivered through an investment agreement for ARI’s proposed acquisition of a 60 percent 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 percent to 2.5 percent. The Philippine Government’s ambition is to generate 35 percent of all its electricity from renewables by 2030, and 50 percent by 2040. The country has multiple strategies to achieve its targets including the Green Energy Option Program (GEOP), Renewable Portfolio Standard (RPS), and the recently launched Green Energy Auction Program (GEAP). Renewable energy expansion is expected to play an important role in meeting the Philippines’ growing economy and electricity demand.