Research Note: Philippines renewables IPO demonstrates maturing markets for energy transition in EMDES

CREC’s recent listing on the Philippine Stock Exchange  (PSE) – backed by investment from MOBILIST – signals accelerating momentum in the renewable energy segment of the market and could provide key information and learning for investors and regulators alike.

Greater investment in renewable energy in the Philippines is needed as fossil fuels have continued to dominate the country’s energy mix over the past two decades. Policymakers have responded with various ambitious commitments to accelerate the country’s clean energy transition and preserve energy security.

The Philippines pioneered a significant role for public markets in financing the country’s power sector, demonstrating the varied listed structures and strategies that can mobilise capital to power economic development and finance the clean energy transition.

This Research Note examines the Philippines’ experience in seeking to improve the regulatory environment for financing the country’s renewable energy sector. The country’s regulatory journey provides important learnings about balancing measures to attract investment with those to ensure value-for-money for off-takers for policymakers in other developing countries. It also demonstrates the central importance of regular public-private dialogue and the need to develop regulations governing capital markets and the energy sector in tandem.

The note also highlights that CREC’s (Citicore Renewable Energy Corporation) successful initial public offering (IPO) listing (Citicore Renewable Energy Corporation) and subsequent performance will generate key market insights into the renewable energy sector’s strengths and vulnerabilities and can inform policymakers focusing on the energy transition.

The transaction has already generated key learnings for the development finance community. It demonstrated that public markets can finance international climate and development goals at scale and highlights how development finance can generate important new market information that enhances risk signals and price discovery for other renewable energy companies in the Philippines and elsewhere.