Energy investors rate PH prospects as best

Investing in energy is now more rewarding in the Philippines.

The country ranks among the most attractive countries worldwide – actually third out of 30 countries – for investments in both renewable energy and conventional energy, an analysis by a global consulting firm showed.

The analysis, titled the Energy Investment Map made by PA Consulting Group, revealed that the Philippines belongs to the top countries globally where investors would find the best opportunities for energy investments.

The Philippines notched high scores in PA Consulting Group’s energy index which rates countries according to anticipated internal rates of return and associated risks.

The Philippines ranked third out 30 countries, behind India and Poland which topped the ranking, driven by a massive demand for new conventional power capacities.

The country was ahead of countries like Turkey (ranked seventh) and Saudi Arabia (ranked 10th).

According to the analysis, conventional generation like coal is still an attractive prospect in Asia-Pacific, driven by lower fossil fuel prices and the need for additional generation capacity across the region.

It also said many of the top countries in conventional generation investment are characterized by fast-growing demand for power combined with regulatory regimes that enable long-term contracts for power from new projects.

The study showed that the Philippines’ position in the conventional energy index is boosted by its high scores for gas and coal which reflects the country’s need for additional generation capacity.

“Most of the generation build underway in Asia-Pacific is conventional – combined cycle gas turbines (CCGT) and coal. This is a reflection of low coal prices, anticipated lower gas prices, and the nascent renewable support policies in the region,” said Steve Thornton, an energy expert at PA Consulting Group.
Meanwhile, the Philippines also ranked fifth out of 30 countries in the renewable energy index, besting countries like the United Kingdon (ranked sixth), New Zealand (ranked ninth) United Arab Emirates (ranked 20th), and Saudi Arabia (ranked 22nd).

PA Consulting said the country’s position in the renewable energy index is lifted by its scores for wind, hydro and geothermal. All three technologies score highly in terms of investment potential, it added.

China heads the renewable energy index, followed by Sweden, Denmark and Austria which ranked second, third and fourth, respectively.

 “The Philippines is in need of new generation capacity, and with the introduction of Feed in Tariffs and an incoming Renewable Energy Market, renewables offer an attractive investment prospect,” Thornton said.
PA Consulting Group’s Energy Investment Map aims to help businesses and investors identify the best countries and technologies where they might look for investment opportunities.

The study, which took place between March and May 2013, included 14 European countries namely Austria, Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, Norway, Poland, Spain, Sweden, Switzerland and the UK.

It also covered 16 additional countries like Australia, Brazil, China, India, Malaysia, Netherlands, New Zealand, the Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Africa, Turkey, UAE and the US.
PA Consulting is a global firm which has experts in energy, financial services, life sciences and healthcare, manufacturing, government and public services, defense and security, telecommunications, transport and logistics.

source:  Malaya