Philippine renewable energy developer Citicore Renewable Energy Corporation (CREC) and Indonesia state-owned Pertamina New and Renewable Energy (Pertamina NRE) have inked a $120 million strategic partnership.
The duo said in a statement on Thursday that under the partnership, Pertamina NRE subscribes to a 20 percent interest in CREC, raising an estimated value of approximately $120 million.
CREC and Pertamina NRE will also jointly explore renewable energy (RE) investments in Indonesia, including the potential development of solar and wind power projects and collaboration related to carbon credit development and trading.
“To be a First-World Philippines powered by pure renewable energy, we must seek every opportunity to collaborate with government as well as peers in the industry and beyond our borders,
“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,” said CREC President and Chief Executive Officer Oliver Tan.
Meanwhile, Pertamina NRE Chief Executive Officer John Anis said the firm leading the charge in Indonesia’s renewable energy transition, and its partnership with Citicore, with their expertise and experience in RE development, is a way to elevate the firm’s capability in RE development, as well as a big step in accelerating its clean energy goals.
“In the same light, we are committed to support Citicore and the Philippines with our own expertise, technology, and best practices,” he added.
The Citicore Group currently operates solar PV plants with a combined gross installed capacity of 287 megawatts (MW).
The company has a target to deliver five gigawatts in five years, the first of which will be completed by this year.
In addition to solar photovoltaic (PV), CREC’s portfolio also includes onshore wind projects that total 803MW.
Four of these wind projects, amounting to 543 MW, are in various stages of development with 362MW for delivery under the Philippine DOE’s Green Energy Auction (GEA).
In her speech, Department of Energy Assistant Secretary Mylene Capongcol stated the need to continuously ensure energy security is the government’s topmost priority.
“The Philippines has never ceased to adapt to the challenges that go along with our growing economy. Addressing the need to ensure energy security at all times is our topmost priority,
“Today, we are embarking on our journey towards energy transition through reliable, sustainable, and environment-friendly policies and regulatory frameworks,” said Asec. Capongcol.
She also underscored the partnership’s role in strengthening energy cooperation between the Philippines and Indonesia.
“The Philippines will not only be able to advance its targets, but it signals that we are in active support to energy cooperation and sustainable development in Southeast Asia,” she added.
She highlighted the memorandum of understanding (MOU) of Cooperation in the Field of Energy signed by the Philippines and Indonesia in 2024, establishing the countries’ commitment to collaborate on energy investments, frameworks, and developments that include RE and the energy transition.
“Both Indonesia and the Philippines share common energy concerns, being dependent on coal-fired power plants and seeking an orderly transition to cleaner technologies,
“A heightened level of cooperation between our countries offers potential benefits across economic, environmental, and geopolitical dimensions through collaboration on energy transition and renewable energy,” she said.
The partnership with CREC marks Pertamina NRE’s first investment in the Philippines and their entry to the country’s booming renewable energy investment climate, now ranked the second most attractive emerging market for renewable energy investments by BloombergNEF.
Pertamina NRE gains access to CREC’s unique expertise in project development, as well as engineering, procurement and construction, or EPC.
CREC, meanwhile, gains the opportunity to develop renewable energy projects in Indonesia in partnership with Pertamina NRE, allowing for the company’s potential expansion in the region.