Pertamina NRE to acquire 20% stake in PH's Citicore Renewable Energy

Pertamina NRE, a subsidiary of Indonesia's state-owned energy giant Pertamina, has entered the Philippines market through a significant partnership with Citicore Renewable Energy Corporation (CREC). The agreement sees Pertamina NRE acquire a 20% stake in CREC.

Under the terms of the agreement, Pertamina NRE will subscribe to 2.23 billion common shares of CREC, raising a total of 6.7 billion pesos (US$115 million), CREC said in a statement.

This strategic investment marks Pertamina NRE's first foray into the neighbouring country and underscores its commitment to expanding its renewable energy portfolio in Southeast Asia, a region recognised for its growing demand for clean energy.

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As part of the deal, Pertamina NRE gains access to CREC's expertise in renewable energy project development, including engineering, procurement, and construction. For CREC, this partnership opens up opportunities to expand into Indonesia's renewable energy sector, leveraging Pertamina NRE’s extensive network and industry presence.

"The partnership with Pertamina NRE presents limitless opportunities for Indonesia and the Philippines to collaborate on innovative technologies and practices in renewable energy. It gives a wider stage to CREC's unique end-to-end capabilities by opening doors in Indonesia even as we drive our developments in the Philippines at full speed," said president and CEO of CREC, Oliver Tan.

The partnership is aligned with CREC's ambitious goal of contributing one gigawatt of green energy capacity annually as part of its broader roadmap to reach 5GW in the next five years. The funds raised from this deal will fuel CREC's pipeline of renewable energy projects across the Philippines.

With Southeast Asia increasingly viewed as a critical driver in the global renewable energy market, the partnership between Pertamina NRE and CREC is poised to play a significant role in accelerating both national and regional renewable energy targets.

Indonesia has revised its renewable energy target for 2025, with projections now indicating that the share of renewables in the country's energy mix will likely fall between 17% and 19%, down from the originally set target of 23%.

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