Clarity sought on ‘green’ energy project economics

While financing is readily available for green energy projects in the Philippines, the industry requires a clearer pathway to profitability to strengthen the investment argument, according to ACEN Corp.

“I’m a little surprised by the assumption that climate financing in general is not available, right? Because there is a lot, certainly,” Miguel de Jesus, ACEN managing director and chief operations officer, said at the BusinessWorld Economic Forum: Unlocking Philippines’ Potential.

“I think a lot… has to do with getting the economics right on how to enable these energy transition opportunities,” he added.

Mr. De Jesus said developers and their financial backers have yet to see clarity on the revenue streams to be generated by energy-transition projects.

“At the end of the day, the banks want certainty of payment, right? And what’s important therefore is to ensure that (these projects have robust) revenue stream,” he said.

ACEN, the listed energy platform of the Ayala group, has initiated the early retirement of the 246-megawatt (MW) South Luzon Thermal Energy Corp., a coal-fired power complex.

The company has a target of scaling up its renewable energy capacity to 20 gigawatts 

(GW) by 2030.

Vincent Martin C. Villegas, senior vice-president and chief revenue officer of First Gen Corp., said the liberalization of foreign ownership rules will help accelerate the development of renewables.

“We can now have 100% foreign investors, which is a big thing,” he said.

Mr. Villegas noted the high levels of risk in geothermal exploration, where First Gen, through its subsidiary Energy Development Corp., is the industry leader.

Mr. Villegas said customers and generation companies are gravitating towards clean energy, adding: “It will take some time. It’s going to be a journey. But it’s a collaboration… That’s going to be an effort from across the entire country. But we’re quite hopeful. If you look at the targets, we think they are achievable,” he said.

First Gen, the power generation arm of the Lopez group, controls 3,668 MW in capacity from its portfolio of geothermal, wind, hydro, solar energy, and natural gas plants.

The company has set a capacity target of 13 GW by 2030.

Monalisa C. Dimalanta, chairperson and chief executive officer of the Energy Regulatory Commission (ERC), said the industry is moving on from the old model where projects were deemed bankable if they signed up one major offtaker.

“This is where government agencies like ourselves and the DoE (Department of Energy) are helping out, in recalibrating the narrative for the financing sector,” Ms. Dimalanta said.

She said various cash flows can now be tapped by the developer, and not necessarily the traditional streams provided by a distribution utility.

Ms. Dimalanta said other potential revenue streams have been liberalized, such as selling to contestable customers under the Retail Competition and Open Access scheme, and participating in the Green Energy Auction Program.

Energy Undersecretary Rowena Cristina L. Guevara said the DoE is pursuing discussions with the Department of Finance (DoF) on initiatives like geothermal de-risking, total electrification, energy efficiency and conservation, and the hybridization program of the National Power Corp.

She said the DoE is in “advanced discussions” with the Asian Development Bank (ADB) to obtain support for these programs next year.

Ms. Guevara said the energy transition should be “calculated and calibrated,” adding: “We don’t want to miss out on economic growth by suddenly turning off our coal-fired power plants.”

Ms. Guevara said that the DoE is coming up with a coal transition policy, having received a presidential directive to ensure the Philippines can deliver on its Nationally Determined Contribution under the Paris agreement.

The Philippines hopes to increase the share of renewable energy in its power generation mix to 35% by 2030 and 50% by 2040.

Source: Business World

The architects' role in sustainable urban conservation

Urban conservation and sustainable urban design are integral to disaster risk reduction management, especially in the Philippines, where many heritage towns are highly vulnerable to natural calamities. Typhoons, earthquakes and floods pose significant threats to these areas, aggravated by aging infrastructure and climate change.

Architects can collaborate with local government units (LGUs) to combine urban conservation efforts with sustainable urban design to safeguard cultural heritage and improve disaster resilience.

Many Philippine historic towns were not designed to withstand modern environmental challenges. As a result, retrofitting and adaptive reuse have emerged as vital strategies, strengthening these structures while preserving their historical integrity. Some traditional building materials, like wood, bricks, and adobe stones, necessitate reinforcement to adhere to contemporary safety standards.

Urbanization's unregulated developments encroach upon heritage sites, increasing their vulnerability to disaster risks. Historic towns in coastal and riverine areas are vulnerable to floods and rising because aging drainage and sewage systems intensify flooding problems. The same is true of those in earthquake-prone areas because of their delicate foundations and the lack of seismic retrofitting.

Vigan, a Unesco World Heritage site known for its well-preserved Spanish-era architecture, remains at risk from seismic activity. The magnitude-7.0 earthquake in July 2022 caused damages to its historical structures, including the Vigan Cathedral and old-century houses along Calle Crisologo. In response, Unesco's collaborative project with Icomos Philippines protects Vigan's historic structures, helps them recover from earthquake damages, and restores them for future generations.

Conservation efforts have focused on adaptive reuse and sustainable materials in Taal, Batangas, and its well-preserved ancestral houses. Taal is exposed to earthquakes, volcanic activity and flooding. Taal's LGU coordinates with national agencies that conduct restoration projects and initiate conservation efforts. It has mapped out high-risk zones and developed flood management systems to protect heritage sites and residential areas.

Iloilo City's Calle Real has been the focus of revitalization efforts to preserve its architectural heritage while enhancing structural resilience. The restoration of its Art Deco and Neoclassical buildings incorporated retrofitting strategies to reinforce them against seismic movement. A flood mitigation strategy, the Iloilo River Esplanade project integrated natural floodplains and green infrastructure to bolster urban resilience. These initiatives demonstrate a holistic approach to heritage conservation and sustainable urban design which can create disaster-resilient communities.

The framework of several national policies integrates disaster resilience with urban conservation. Republic Act (RA) 10066 mandates LGUs to protect and conserve the Philippines' cultural heritage. RA 11961 reinforces efforts in cultural mapping and enhances cultural heritage education programs nationwide. The Green Building Code of the Philippines promotes climate-responsive design, which can be applied to heritage buildings through passive cooling techniques and adaptive reuse. The National Disaster Risk Reduction and Management Act of 2010 encourages LGUs to integrate disaster preparedness and risk reduction strategies into local urban planning. The Philippine Climate Change Act of 2009 supports climate adaptation and nature-based solutions benefiting heritage towns in flood-prone areas.

Architects can translate these national policies into tangible built environments. Their expertise is essential for the preservation and adaptive reuse of heritage structures. The Green Building Code of the Philippines demands that they be adept in climate-responsive design and selecting sustainable materials. The National Disaster Risk Reduction and Management Act of 2010 and the Philippine Climate Change Act of 2009 require them to integrate resilience into their designs by creating structures capable of withstanding natural disasters while minimizing environmental impact. In implementing these policies, architects bridge the gap between legislative objectives and the development of a sustainable and culturally enriched built environment.

Architects advocate for nature-based solutions that mitigate disaster risks. They ensure that policies and urban planning frameworks respect historical authenticity and climate resilience. Green infrastructure, such as tree-lined buffer zones, bioswales, and wetland restoration, enhances heritage sites' aesthetic and ecological value and protects them from climate-related threats.

Collaboration with LGUs and community engagement are essential in crafting local conservation strategies integrating disaster risk reduction and management. Many residents perceive conservation as solely the preservation of old structures, overlooking its role in enhancing resilience against natural hazards. Architects can address this misconception by demonstrating how conservation and adaptive reuse of historic buildings contribute to safety, sustainability and climate resilience. Public awareness campaigns, workshops and participatory planning sessions can involve communities in decision-making processes.

Given the Philippines' rapid urbanization and climate-related threats, integrating disaster risk reduction into urban conservation as interconnected disciplines is imperative. Sustainable interventions should focus on retrofitting and strengthening historic structures, improving drainage and flood control systems, promoting mixed-use development in heritage districts, and incorporating green. Architects play a vital role in this transformation, working with urban planners, landscape architects, and local stakeholders to ensure that heritage towns remain livable and well-prepared for future challenges.

Source: Manila Times

Planning the urban climate of the future

What a tree needs to grow and how it affects its surroundings vary from species to species. This makes it increasingly important for cities to adapt the urban tree cover to local conditions.

A team at the Technical University of Munich (TUM) has developed the online tool CityTree. Cities, municipalities and interested individuals can use it to find out how 12 common tree species are growing in 34 German cities and how they will benefit the local climate in the future.

Trees reduce heat stress on hot days, emit oxygen into their surroundings and bind climate-damaging CO2. This adds up to a decisive contribution towards maintaining the best possible quality of life in cities as the world heats up. A team working with the forest scientist Prof. Thomas Rötzer has investigated the advantages of selected tree species for the urban climate and the conditions under which they thrive.

To conduct the study, the researchers measured more than 5,000 urban trees throughout Germany, took samples from them and analyzed their surroundings. The focus was on lime trees, locust trees, plane trees and nine other species that make up 60% of the urban tree cover in Germany.

The data were then used to create an interactive model called CityTree. Access to the tool is free of charge. It is mainly intended for cities and municipalities, but can also be used by ambitious hobby gardeners when planning tree plantings in their own gardens.

Creating virtual trees

Users can define a virtual tree with just a few clicks. After choosing from among 34 cities and 12 tree species and defining such characteristics as soil type, the level of soil sealing and light exposure, the user sees how much CO2 the tree will bind, how much it will cool its surroundings and the quantity of water it will use.

The preview can also reflect various climate scenarios. The period from 1991 to 2000 simulates tree performance in the current climate, while 2003 represents a dry year. For the period from 2081 to 2090, the user can choose between climate scenarios based on 1°C or 4.8°C of global heating.

The data illustrate the importance of detailed planning for urban greenery. Cities like Berlin and Würzburg, with low precipitation and high temperatures, benefit more from plane trees and other drought-tolerant species. A city like Munich, with relatively high rainfall, can plan for species such as small-leaved lime and horse chestnut trees if the tree pit is large enough.

Planning for 2081 starts now

Although 2081 might seem like a long way off, "It is urgent for cities to take action now and critically assess their tree cover. Planting decisions shouldn't be based solely on aesthetics," says Thomas Rötzer.

"A tree has to grow for many years before it has a noticeable impact on urban climate. In the past, cities and municipalities lacked concrete information for planning optimized tree plantings and to assess the performance of existing trees. Through the app, we have converted scientific data into a usable format with practical benefits that can address this urban planning shortfall."

The research team recommends that local authorities develop a systematic overview of their trees. So far, there are only a few resources that would represent an "urban tree cadastre." With this knowledge, cities could establish programs with concrete targets and measures for optimal adaptation to the challenges of climate change.

The research team is currently working toward that objective. Using satellite images, they are surveying the tree population of Munich and assessing its potential growth and the benefits to the urban climate. These data can then be used for the sustainable management of the city's tree cover.

Source: Phys Org