On September 27, 2021, JERA, Japan’s largest power generator, announced that it is acquiring approximately 27% of the outstanding shares of Aboitiz Power Corporation, the leading utility in the Philippines, for approximately $1.58 billion, which is the largest investment by JERA to date.[1] JERA, a joint venture between Tokyo Electric Power Company and Chubu Electric Power Company, has signed a share purchase agreement with Aboitiz Power’s parent company Aboitiz Equity Ventures and Aboitiz & Company. The Japanese power generator hopes to benefit from growing energy demand in the Philippines while also significantly advancing the expansion of clean and renewable energy in the country. Power demand in the Philippines is expected to grow at an annual average rate of 4.2% through 2030, making the development of electric power infrastructure an urgent priority. JERA’s statement noted that the Philippines, like Japan, has limited energy resources and is subsequently reliant on imports.
JERA and Aboitiz will explore many areas of collaboration, including operation and maintenance, development of power projects, fuel procurement, and the use of cleaner fuels such as ammonia and hydrogen. Aboitiz Power aims to increase power generation capacity from 4.6 GW (including facilities under construction) to 9.2 GW by 2030. The utility also hopes to achieve a 50:50 clean energy and thermal capacity mix by 2030. JERA also has goals to reduce its emissions and is working to eliminate CO2 emissions from its domestic and overseas businesses by 2050 under its “JERA Zero CO2 Emissions 2050” objective.