Finance is very much needed to further the dissemination of decentralized renewable energy to comprehensively address climate change and improve access to energy in the Philippines.
The Philippines continues to lag behind other countries in Asia when it comes to making the transition to low-carbon energy systems that run on renewable energy sources like solar energy. Advocates point out that this slow progress is because of the national government's dependence on fossil fuels and the mediocre implementation of existing policies to support RE companies, RE technologies, and comprehensive programs to make the transition to cleaner and more sustainable fuel and energy sources.
Make the Transition to Clean Energy now
There is a need to encourage the transition to renewable energy in the Philippines to help the country reduce its GHG emissions to mitigate climate change. In the Philippines, the agenda to adopt RE and encourage the RE market exists because of the need to increase the capacity for electricity generation, diversify the national energy mix and increase access to modern energy across remote and Geographically Isolated and Disadvantaged Areas (GIDA).
Many areas in the Philippines lack adequate electricity supply. In these areas, local governments prioritize increasing electricity generation capacity using diesel-fired generators and encourage the building of coal-fired power plants. While these actions respond to the need to generate electricity, they do not address the challenge of increasing access to clean and sustainable energy that is safe for the environment and human health.
In more developed countries, governments make it a priority to implement renewable energy programs to meet the energy needs of industries and businesses, and at the same time reduce GHG emissions. Helping low-carbon economies like that of the Philippines develop their own efforts to make the transition to renewable energy can contribute to the international campaign to slow down climate change and preserve the environment.
Promote and Build Solar PV Installation Projects
Supporting efforts to diversify the Philippines’ energy mix by increasing the share of RE, specifically solar, to increase available generated capacity to expand electricity supply and reduce the GHG emissions of the country over time will prove to be very significant and impactful. In the case of the rural areas of the Philippines, countries, financing RE projects such as the installation of solar PV systems on top of church buildings, schools, and government-owned institutions and offices will help meet this objective to fulfill objectives for sustainable development.
This does not come without challenges because of the unique characteristics of the Philippine population: most Filipinos can ill-afford modern electricity, especially in rural areas. This, in combination with the cost of RE technologies and capital, need to be addressed to reveal the value of financing RE schemes such as solar PV installation projects and programs.
Electricity is crucial for development, and electrification programs in the Philippines have been largely unsuccessful in addressing electrification problems in rural and off-grid areas, compounding the challenges associated with achieving the UN Sustainable Development Goals (SDGs), particularly SDG 7: “Ensure access to affordable, reliable, sustainable and modern energy for all” (United Nations, n.d.).
The Social Purpose of Investing
Investing has always had a social purpose, and this purpose is to utilize capital in the most effective way, for the most useful ends. Investment decisions have the potential to make a deep and meaningful impact depending on which economic activities they will support. The priorities of financial institutions and companies play a strong role in setting the directions of the economy and the rest of society.
For companies and institutions that carry an agenda of social good, the social purpose of investments is not neglected in favor of the private purpose which is to ensure the biggest returns for investments. The intrinsic value the social purpose of investments should be seen as going beyond the financial returns it delivers to investors.
In the wake of the continued devastation being caused by the COVID-19 pandemic on economies and entire countries, it’s crucial to recognize the importance of making more intelligent, more socially-aware, and more sustainable uses for capital investments. The social good that can be generated by investments that put a premium on social purposes is potentially massive, and the financial returns can also be considerable and can, in turn, also be funneled back to other investment areas of a similar nature.
The worsening climate emergency is a problem that connects to this. The environmental damage and human tragedies that continue to mount now affect the value of investments. In specific terms, companies and institutions must divest from fossil fuels and other businesses that employ polluting methods of production and consumption.
We are now witnessing the effects on certain international, individual companies who put profit at all costs over the impact on human beings. These companies have been proven to ignore human considerations, and in doing so, they also put shareholders at risk.
More than ever, we see that the philosophy of profit at all costs is no longer acceptable. When viewed with a long-term perspective, it is also the poorest way to serve the private purpose of investors because their investments are not sustainable, and do not contribute to the social good.
Invest in WeGen Energy’s Laudato Si’ Project
Inspired by Pope Francis’ Encyclical Letter Laudato Si': On the Care for the Common Home, WeGen Laudato Si’, Inc. (“WGLS”) was established as the operating company of WeGen to help churches and religious institutions in the Philippines respond to climate change and to the call to ecological conversion.
WeGen’s 12 kWp solar PV system for Sangguniang Laiko (The Council of the Laity) unlocked the potential for Philippine dioceses to be WeGen’s key partners in achieving a shared vision.
WGLS now works with dioceses all over the country to expand the use of clean and renewable energy through the installation of rooftop solar photovoltaic (PV) systems on their properties – including churches, schools, offices, and hospitals – that may later be combined with battery storage and energy optimization software solutions.
The Philippine Catholic Church consists of 16 ecclesiastical provinces further divided into 85 dioceses across the country, often overlapping with political subdivisions. A “diocese” refers to a geographical district under the jurisdiction of a Bishop or Archbishop and consists of smaller parishes or administrative districts under the care of parish priests.
Through WeGen’s partnerships with the dioceses throughout the country, WGLS projects will help build disaster resiliency, minimize dependence on power companies, generate expanded livelihood options, and contribute to an improved quality of life for Filipinos. These projects will also pave the way for the future integration of battery energy storage systems and intelligent energy optimization software that will enable the sale and sharing of power among individuals, utilities, businesses, and communities toward a more equitable and sustainable energy future. #