DONG Energy is the largest energy company in Denmark and one of the leading energy groups in Northern Europe. However, DONG—short for Danish Oil and Natural Gas—is no longer an accurate description of who they are right now. They have grown so much as a green energy company and adopted its current name, Orsted, on November 6, 2017.
This Danish, state-owned company started as an importer and trader of gas and oil. Under the leadership of CEO Anders Eldrup, the company had evolved to become an energy group, present in all steps of the gas and oil value chain. However, through the years, it has transformed itself from being a black energy company (generating 85% black energy and 15% green energy) to a green energy company.
In 2011, Anders Eldrup pondered how to use their limited resources to advance the delivery of clean and reliable energy. The company has faced several strategic questions, including whether and where they should continue investing in offshore wind and how to identify the next key growth businesses of the future. Driven by the heightened awareness in climate change, it focused specifically on resource preservation and environmental sustainability. They saw opportunities in the wind energy sector and, given their expertise in the development and managing of wind farms, the company pivoted itself strategically by entering the wind power industry. Now, the company is the EU market leader in offshore wind energy.
Dong has gone green! They pushed forth a new vision, the 85/15 strategy, which stated that the 85% fossil fuel-15% renewable energy split in its power generation mix would be swapped within a generation. This would be done through closing coal-fired power plants and scaling up offshore wind. The new strategy seems to be working. The latest numbers show that, as of Q1 2022, the share of the non-green energy has been reduced to only 8%.
In our case, I think it’s about time for the Philippine Government to focus more on renewable energy sources. We could also borrow the 85/15 strategy of DONG Energy and lessen our dependence on oil. Our country is rich in natural resources (i.e., hydro, solar, geothermal, biomass, and wind) and we have not maximized their utilization. We have a few energy companies focusing on renewable energy like the Aboitiz Group, ACEN, First Gen, Alternergy, among others, but we need more and we need the government’s support. I think it’s time for the Philippines to double down on renewable energy generation, just like what they did in Europe. I know that prioritizing investment in the renewable energy sector tops the Marcos Administration’s economic agenda, and the shift to renewable energy is seen as a solution to help slow down the effects of climate change. I just hope that they are serious about it.
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