A Look at the Philippines’ Clean Energy Ecosystem
Courtesy of RMI.
By New Energy Nexus Philippines
The Philippines is one of the most vulnerable countries in the world to climate change. Sea level rise is three to four times faster in this island nation than the global average, and it gets hit with an average of 20 typhoons a year. Energy equity is also a major concern as 10 percent of the Philippine population still lives in rural areas without access to electricity, and those that have electricity deal with frequent outages.
Fortunately, a small but mighty group of startups is helping the Philippines forge a clean energy future. According to research by New Energy Nexus (NEN), a founding partner of Third Derivative, and RMI, 15 young companies are helping transform the climate crisis — and close the region’s energy access gap — with renewable energy and clean-tech solutions.
The good news is that these startups are not acting alone. Public and private leaders across the Philippines are working to create a cleaner, more accessible and reliable energy system. Already policymakers have announced a moratorium on new coal projects and are aiming for 35 percent clean energy by 2030.
But it’s going to take far more innovation and investment to meet that target. Coal-fired power capacity has increased since 2008, and now contributes to 57 percent of the country’s energy mix. And the nation’s renewables currently account for less than a quarter of supply, with variable renewables like wind and solar significantly less prevalent (2 percent) than hydropower and geothermal.
All this signifies major ecosystem opportunities — along with major barriers — for energy innovation.
Ilocos, Philippines. Photo by Brett Andrei Martin, via Unsplash
5 Regional Needs & Opportunities
Following, we explore five takeaways from NEN’s Philippines Energy Ecosystem Map report, including key traits of today’s startup scene; funding, policy and institutional drivers; and the general landscape of support.
- Startups and other early indicators reveal a clean tech ecosystem with room to grow
The Philippines is home to an array of clean energy game-changers, including startups, research labs, universities, media, and professional service providers.
Our research identified 15 promising new energy startups, including:
- Exora, a platform that connects retail electricity suppliers with contestable customers to make energy affordable and accessible for all Filipinos
- Smartermeter, an energy management system for households and rental business units to create a community of more informed consumers
- Circular Solutions, a waste management system to help residential communities with clean cooking fuel from biodegradable waste
- Light of Hope, an impact startup that provides solar generator systems for low-income families
These and other efforts are backed by a supportive ecosystem including 200 energy professional service providers and 16 media outlets that promote energy-related news. And they’re surrounded by other innovators, with 240 active patents related to energy, clean energy, renewable energy, and batteries, along with 141 new energy research projects spanning 11 research laboratories and eight universities.
Bottom line: The Philippine clean energy ecosystem is still building to a critical mass. We see room for even more startup players, considering the larger setting of innovation.
- Funding is on the rise, though not yet up to market need
Overall, we’re seeing outsized market demand for cost-effective clean energy solutions. Off-grid solutions like standalone solar and minigrids will be key to closing the energy gap for the 24,556 un-electrified communities in the Philippines.
But this can only happen with additional funding.
Currently, the country’s funding landscape encompasses 27 bank loans for energy startups and projects, six grant providers, 11 venture capital firms, five crowdfunding platforms, two insurance programs, six angel and investor networks, five green bonds, and 6,943 micro-cooperatives.
While these are promising numbers, current funding levels won’t cut it. Our analysis shows that with an investment of $354 million, 1.25 million households could tap into minigrid-generated electricity by 2030. And an investment of $897 million would give an additional 2.5 million households standalone solar by then.
Bottom line: There is opportunity to grow in terms of market interest and need, but it’s going to take more substantial investment.
- Philippine policy is trending in favor of clean energy
Supportive policy and programs are always important for energy startups. Fortunately, Filipino policymakers have been incorporating clean energy provisions into the nation’s plans for more than a decade.
A few notable examples include:
- The Electric Power Industry Reform Act (EPIRA), which privatized the power sector to support competitive pricing, more reliable electricity, and better-quality power
- The Renewable Energy Act of 2008, which includes a renewable portfolio standard, feed-in-tariff system, green energy option program, and duty-free importation of renewable energy materials
- The Energy Efficiency and Conservation Act (EECA) of 2019, which calls for an interagency energy efficiency and conservation committee as well as energy efficiency certifications, standards, and labeling
- The Energy Virtual One-Stop Shop, which aims to reduce red tape by streamlining permitting process of power generation, transmission, and distribution
Bottom line: Policymakers have shown clear support for opening pathways to clean, affordable energy, an encouraging sign for energy startups.
- Institutional inefficiencies pose a challenge
According to the International Trade Administration, the Philippines needs about 43 GW of additional capacity by 2040, and is “clearly behind schedule in developing solutions.”
Utilities and electricity companies are central to the effort, including 198 electric generation companies, 22 private distribution utilities, 6 LGU-owned utilities, 120 electric cooperatives, 67 retail electricity suppliers, 2,089 contestable consumers or end-users, and 396 transport cooperatives.
But major inefficiencies are slowing progress in the energy supply sub-sector. Utility and electricity company leaders grapple with a complex and slow approvals process, non-optimal market mechanisms, and institutional capacity issues.
Bottom line: Don’t expect smooth sailing in terms of institutional buy-in and adoption of even the most proven and cost-effective clean energy solutions.
- Clean energy networking opportunities abound
A spirit of innovation is evident not just in the startups and research organizations themselves, but also in groups and events seeking to elevate communication and collaboration in the Philippine clean energy world.
By our count, there are 18 inspirational events, 15 capacity building initiatives, two startup validation programs, 22 fab labs, 15 networking events, 49 incubators and accelerators, two pitch and demo events, and 25 evangelists.
For example, RebootPH and Our Energy 2030 are youth-led coalitions advocating for awareness and capacity building on renewable energy.
Bottom line: Third-party organizations are helping startups and other clean energy innovators get the word out about breakthrough work.
Plotting Future Energy Innovation in the Philippines
Looking ahead, new market entrants and startups in the Philippines face the typical hurdles you’d expect anywhere: It takes a lot of time, and a lot of capital, to bring a promising idea from seed to market.
In the Philippines in particular, startups face major institutional barriers and regulatory challenges. Still, opportunities exist and are growing thanks to market need, increasing research and development efforts, and a supportive policy environment.
New Energy Nexus calls on accelerator programs, policymakers, and funding entities alike to step up efforts to support energy startups in the Philippines, and together help achieve a 100 percent clean energy economy for 100 percent of the population.
Are you a climate technology startup? Learn how Third Derivative, a global accelerator, can help you drive success and speed to market for your climate innovation, and apply to join our next climate tech accelerator cohort.
Featured photo by Hitoshi Namura on Unsplash
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Sennebogen’s new 824 G Electro Battery material handler is being put through its paces at a recycling site in Munich’s Aubing district. And, thanks to its innovative grid-connected/battery system, it never has to stop to recharge!
With its emphasis on the recycling of stainless steel, ferroalloys, and superalloys, CRONIMET Alpha’s recycling operations are loud, and adding the ceaseless drone of diesel engines straining against the mass of all that metal as it’s sorted and fed into bailing presses. That’s why the company was so excited to test out Sennebogen’s new, all-electric 824 G Electro Battery material handler during an extensive trial at its Munich site.
So far, CRONIMET’s operators have been impressed with the new Sennebogen. “The battery-powered machine drives just like a diesel-powered one,” explains equipment operator Zoran Alexsic. “You don’t notice any difference in power – only that everything runs much more smoothly and quietly … you don’t have to take breaks to escape the noise.”
Quiet, but powerful
The Sennebogen 824 G comes standard with a 98 kWh battery, but operators can install up to four modular packs for a total of 392 kWh and roughly eight hours of runtime. Even with a single pack—good for 1.5 to 3 hours—the machine can keep CRONIMET’s operations running almost nonstop, thanks to its built-in dual power mode.
Sennebogen’s dual power mode enables the 824 G to run on battery while drawing power from the grid at the same time. When connected to grid power, the machine can recharge its batteries as it works, eliminating the downtime other BEVs need for charging and giving operators the freedom to reposition the machine on battery power, then plug back in when convenient.
Beyond flexibility, the electric handler is also cleaner, quieter, and more cost-effective than the diesel models it’s designed to replace. By seamlessly cycling between battery and grid power, it reduces both noise on the job site and energy costs during peak hours.
Electrek’s Take
We’ve seen grid-connected equipment assets like this before, and with good reason. Simply put, it takes many more kilowatts of energy to dig up tons and tons of dirt and rocks than it does to send an aerodynamically smoothed sedan down a road. That’s why you still see a push towards hydrogen and other energy-dense fuels in construction – but permanently grid connected assets, whether wired or inductive, could solve for some of the limitations of batteries on job sites that can support them.
If the 824 G Electro Battery is a commercial success, expect Sennebogen to roll out more grid-connected options in the years to come.
SOURCE | IMAGES: Sennebogen.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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MINI has partnered with lifestyle brand, Deus Ex Machina, to develop this. It’s called the Skeg, and it’s a high-performance, racing-inspired electric concept car that’s sure to lighten the mood – by shedding fully 15% of its mass in the quest for speed.
One of a pair of exclusive, one-off concepts based on MINI’s John Cooper Works cars. The Deus Ex Machina Skeg celebrates MINI’s storied racing history with what the company calls, “a clean, minimal, and quiet rebellion,” that draws on materials, technologies, and philosophies from the world of surfing.
The electric MINI JCW Skeg is stripped to its essentials, with much of the steel and aluminum bits replaced with lightweight fiberglass to maximize acceleration while driving the minimalist aesthetic home. The end result weighs 15% less than the standard car – but makes the same stout 190 kW (258 hp) as the production car.
Surf’s up
The interior is stripped back to the barest essentials, reflecting BMW’s vision of a surf culture that prioritizes function over form. MINI claims the end result resembles a mobile surf shop, with fiberglass trays for wetsuits, specially shaped bins, neoprene seats, and other touches that “bring the surf culture into the interior.”
For their part, the BMW and MINI styling team seems pretty proud of its minimalistic electric endeavor. “In this extraordinary collaboration … every single detail has been crafted with artisanal precision and expertise,” says Holger Hampf, Head of MINI Design. “This has resulted in unique characters that are clearly perceived as belonging together through their distinctive design language and use of graphics.”
The concept retains the production version’s 54.2 kWh li-ion battery pack, up to 250 of WLTP range with the production aero kit, sprints from 0-100 km (62 mph) in just 5.9 seconds. With 15% less mass, though, that should jump to more than 255 miles, with 0-60 times dropping below 5.5 seconds.
I dig it – but I’d skip the surf bits and just appreciate the raw composite, minimalist interior look for what it is. Take a look at the image gallery, below, then let us know what you think of MINI’s Skeg concept in the comments.
MINI Skeg concept | gallery
SOURCE | IMAGES: BMW MINI.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links. More.
Environment
Volvo Penta teams up with e-power to equip Boels with next-gen Battery Energy Storage Systems (BESS)
Veteran marine and industrial power solutions company Volvo Penta has joined forces with energy solutions provider e-power to build battery energy storage systems (BESS). Volvo Penta’s battery systems for energy storage will power BESS units built by e-power that can be catered to a range of applications, most notably construction rental clients like Boels Rentals in Europe.
Volvo Penta is a provider of sustainable power solutions that currently serves land and sea applications under the Volvo Group umbrella. As more and more of the world goes all-electric, the global manufacturer has also adapted, sharing cultural values with Volvo Group to engineer new and innovative sustainable power solutions.
Nearly 100 years later, Volvo Penta remains an industry leader in marine propulsion systems and industrial engines. As more and more of the world goes all-electric, the Swedish manufacturer has also adapted, sharing cultural values with Volvo Group to engineer new and innovative sustainable power solutions.
For example, all Volvo Penta diesel engines now run on hydro-treated vegetable oil (HVO), reducing well-to-wheel emissions by up to 90% across the marine and industrial power industries. On the zero-emissions side, Volvo Penta has expressed its dedication to fossil-free power solutions, including battery electric components to serve heavy-duty applications such as terminal tractors, forklifts, drill rigs, and feed mixers, to name a few.
To leverage its battery electric value chain, Volvo Penta has also ventured into battery systems for energy storage (or BESS subsystems). These energy-dense, purpose-built BESS subsystems can provide portable, sustainable energy for all-electric charging and reduce grid dependency.
Volvo Penta to deploy battery systems for energy storage
Volvo Penta recently announced a strategic partnership with e-power, a Belgian power solutions provider. Together, Volvo Penta and e-power will develop a scalable Battery Energy Storage System (BESS) for Boels Rental.
The collaboration continues a long-standing partnership between all three companies. Boels – one of the largest construction rental companies is a long-time customer of e-power generators that utilize Volvo Penta engines. As the company shifts toward electrification and sustainability, it will again turn to those companies to deliver reliable performance.
Volvo Penta’s BESS subsystem comprises battery packs, a Battery Management System (BMS), DC/DC converters, and thermal management, combining to offer a compact, high-density, and transport-friendly solution optimized for rental operations. The company shared that this BESS design is integration-ready, enabling other OEMs like e-power to adapt and scale systems to customer-specific needs. Per e-power business support director, Jens Fets:
We’ve built our reputation on reliability and efficient power systems. Working again with Volvo Penta, this time on battery energy storage, allows us to meet the growing demand for energy in a silent, low-emissions, compact and mobile design—especially in rental applications.
The deployment of these new battery energy storage systems will help Boels cater to its customers’ growing demand for clean, silent, and mobile energy solutions in construction and other industrial applications.
Aside from being more quickly adaptable to customer needs, Volvo Penta says its BESS architecture marks an overall shift in rental power systems. This is welcome news for all who support a cleaner, more sustainable future across all industries.
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