“The company said that growing its RE portfolio while also investing in traditional sources while complementing it with energy storage.”
AS ONE of the oldest conglomerates in the country, the Aboitiz Group continues to innovate in the fields of power, financial services, food manufacturing, real estate and infrastructure, among others.
Aboitiz Equity Ventures (AEV) is currently undergoing a “great transformation” to become the Philippines’ first “techglomerate” by adopting an “innovation and a new startup culture” as well as by investing in various projects and initiatives with several partners, including the Philippine government.
AEV said these include investments in renewable energy (RE), modern infrastructure development and financial inclusion but with a strong focus on sustainability and corporate social responsibility.
Such efforts are also being pursued by the company as AEV is a strong believer that digital transformation can improve efficiency, increase productivity and enable businesses to reach new markets and customers.
Riding the EV wave
Among the conglomerate’s most recent steps in reaching the such goals include ventures on electric vehicles (EVs) by its subsidiaries.
Last year, Aboitiz Infra Capital, through LIMA Land Inc. has launched its fleet of EV buses under its transport system, Red Link in its LIMA Estate in Malvar, Batangas.
The company said that initially, seven EVs will ply routes going to the economic zone but will be increased as demand for the service ramps up.
On the other hand, Aboitiz Power Corp. also launched its EV fleet transformation program last year, as the company aspires to achieve 40 percent electrification of its four-wheeled vehicles and motorbikes by 2030 and finally transform and electrify 100 percent of its fleet by 2040.
Aboitiz Power said the program supports the Electric Vehicle Industry Development Act which mandates industrial and commercial companies to have at least a 5-percent EVs in their of fleet.
The company said the EVs are deployed to three key cities of Aboitiz Power distribution utilities, specifically, Visayan Electric, Davao Light and Cotabato Light.
Aboitiz Power said its EV fleet transformation program also aligns with the growth strategy of adding 3,700 megawatts (MW) of RE in its generation portfolio in the next ten years.
The company said pursuing EV will also help in reducing the country’s heavy reliance on the importation of fossil fuels for transportation and electricity generation while also reducing emissions and contributing to the company’s bottom line of improved energy efficiency and transportation economics as the cost per kilometer traveled of a unit is at least half compared to internal combustion engine vehicles.
Strategic balance on re and baseload projects
Amid the push for RE, the Aboitiz Group emphasized the need for a balance approach as there is still a need for power from baseload sources today.
The company said that growing its RE portfolio while also investing in traditional sources while complementing it with energy storage for stability makes the most sense to enable the Philippines with a sustainable future powered by more RE sources.
Aboitiz Power eyes spending around P190 billion over the next decade for an additional 3,700 MW of RE, growing its capacities to 4,600 MW or three times the company’s current renewables portfolio by 2030.
Close to 1,000 MW of Aboitiz Power projects in wind and solar farms and geothermal capacities are in the pipeline.
Efforts recognized globally
Just this month, the Aboitiz Group ranked alongside global giants such as Apple, Microsoft and BMW, following the release of TIME and Statista’s World’s Best Companies of 2024 ranking.
The recognition evaluated companies based on employee satisfaction, revenue growth apart from environmental, social and corporate governance performance.
Among factors that cemented AEV’s ranking in the said recognition is its initiatives including CarbonPH, a multi-partite reforestation and watershed recovery project that harnesses technology to increase forest cover and biodiversity while supporting sustainable livelihoods.
