Japanese trading House Mitsui & Co has chosen the PH as the site for its first mega-solar project in SEA

Japanese trading house Mitsui & Co. has chosen the Philippines as the site for the company’s first mega-solar project in Southeast Asia.

Mitsui has formed a renewable energy joint venture with Philippine utility company Global Business Power (GBP). The solar project in the northern province of Rizal is expected to cost roughly 7 billion yen ($64.4 million or ₱3.08 billion). Mitsui will foot about 40% of the bill.

The mega-solar farm will have a capacity of 115 megawatts of electricity and is expected to be completed in March 2022. The power will be sold to Manila Electric, the country’s largest distributor, over two decades.

GBP’s current plants burn heavy oil, coal, and other fossil fuels. Mitsui has been involved in U.S. and Mexican mega-solar projects and will bring its expertise in renewable energy to the table.

The Philippines is currently home to over 100 million and is expected to experience some of the greatest growth in electricity demand among Southeast Asian countries.

Coal plants dominate the power mix while renewable energy contributes just over 20%. Plans call for expanding the share of renewables to 35% by 2030. GBP and Mitsui are anticipating the demand for solar power.

Mitsui has responded to the global shift toward decarbonization by engaging in solar and offshore wind power projects in both the U.S. and Taiwan. The Japanese company was also involved in coal plants in Indonesia, Malaysia, and elsewhere in Southeast Asia, but said in November it is looking to negotiate sales of those interests.

Mitsui plans to raise the share of renewables to 30% of its entire power generation profile by the end of the decade, up from 15% in 2019.

SOURCE: Nikkei Asia