Thai RE firm eyes Philippine expansion

THAI renewable energy (RE) company Sermsang Power Corp. Public Co. Ltd. is studying further expansion in the Philippines as it seeks to boost its Southeast Asian portfolio, according to the International Finance Corp. (IFC).

The planned expansion signals continued foreign investor interest in the Philippines’ renewable energy sector as the country pushes to increase clean energy capacity and reduce dependence on imported fuel.

The initiative is being sponsored by Sermsang and Bago Negros Energy Corp., according to a project summary posted by the IFC on May 30.

“In this regard, Phase 1 of this collaboration between IFC and Sermsang aims to support Sermsang’s expansion initiatives in the region, commencing with a market entry strategy assessment for the Philippines, and optimize its existing Thailand portfolio,” IFC said.

Sermsang owns and operates renewable energy projects with attributable capacity of 282 megawatts across Japan, Thailand, Vietnam and Mongolia.

In November 2024, the company announced its investment in a 150-megawatt wind power project in the Philippines through the acquisition of Bago Negros Energy Corp.

The multilateral lender said potential projects identified through the strategy could include greenfield and brownfield renewable energy assets.

However, IFC noted that some projects might not qualify for financing because of environmental and social risks involving biodiversity, land acquisition, indigenous peoples and supply chain concerns.

“To address this, if the potential pipeline is identified, IFC will conduct early environmental and social screening to identify… risks and exclude projects that will not be able to meet the requirements of performance standards,” it said.

“For viable opportunities, detailed due diligence and environmental and social action plans will be conducted,” it added. — Justine Irish D. Tabile