In a step towards encouraging renewable energy projects and foreign investments in the sector in the Philippines, the country’s private equity investor New Wave Strategic Holdings Incorporated (New Wave) and its Malaysian government-backed fund partner Emissary Capital are set to invest $50 million (around P2.74 billion) in renewable energy.
As per the statement, the proposed investment will be towards building projects with 1,000 megawatts (MW) of “bankable capacity.” This proposal was among those presented to President Ferdinand Marcos Jr. during his recent three-day state visit in Malaysia.
“New Wave is a subsidiary of investment holding firm IP E-Game Ventures Incorporated. Meanwhile, Emissary Capital is backed by the Malaysian government’s Penjana Kapital. It has two funds, one of which is a $50 million growth-stage tech fund that has invested in some tech companies in Southeast Asia,” informed the firm.
The firms aim to fund endeavors in the renewable energy sector, electric vehicle industry, and clean energy and smart grid enablers. An immediate focus includes solar and wind farms located in northern Luzon.
“It is important that the Philippines develops a more mature ecosystem with capital providers across various stages of the investment cycle. With Emissary’s entry into the Philippines, we are providing more founders and entrepreneurs access to growth capital as well as a regional network that can help them expand across Southeast Asia,” New Wave director Enrique Gonzalez said.
Erman Akinci, partner at Emissary Capital, said, “The Philippines fully opening up renewable energy to foreigners presents opportunities, describing it as “the most exciting renewable energy market in Southeast Asia for the next five to 10 years.”
“Clean energy is both a local and regional commitment among ASEAN neighbors. We believe cross-border investment and trade will ultimately benefit the entire region and help ASEAN meet its collective goals. We hope our fund can contribute to this goal as well as generate healthy returns,” Akinci said.
It may be noted that the Philippine government is aiming to increase the share of renewable energy in the country’s total energy mix to 35% by 2030 and 50% by 2040. As per data, in 2022, renewable energy only comprised 22.8% of the total mix, and solar and wind comprised less than 3% of the power generated last year.