Powering innovation: Reyland Benjamin Nepomuceno

The story of David and Goliath has been retold throughout the ages as an inspiring reminder that the underdog can sometimes come out on top. For Raslag Chief Strategy Officer (CSO) Reyland Benjamin Nepomuceno, it’s more than just a story – it’s a case study in determination that is written into the energy company’s DNA.

"We’re one of the pioneers of agrivoltaic deployment, wherein we’re not only addressing clean energy, but also food security," he tells The CEO Magazine.

"Raslag is in a position where we recognize we are not one of the biggest players in the market and we have limited resources, but, like the classic tale of David and Goliath, we know we can win in certain areas."

When Nepomuceno joined Raslag as CSO a year ago, he focused on understanding the business’ current state.

"I tried to see what the existing processes were, what the baseline was and what the pain points were. And from there, I decided what needed to be addressed, what needed to be leveled up and improved," he explains.

"I came up with recommendations, and a lot of those are in place right now."

The next step

This hands-on approach will be key to helping Raslag achieve its capacity target of 1,000 megawatts by 2035. But Nepomuceno points out the vision is about more than big numbers – it’s about understanding the steps required to get there.

"Traditionally, we are into greenfield solar builds, and the land is the lifeblood of solar builds like that, so it takes a lot of capital," he explains.

"As a strategy, we are exploring other modes such as a long-term lease instead of buying the land and brownfield acquisitional projects. We’re used to building our own projects from the ground up, but it takes time. With brownfield, we can acquire existing projects."

Raslag is also pondering alternative models, such as fish pen solar, which involves installing photovoltaic modules on the water’s surface to harness solar energy.

"In Singapore, there’s a scarcity of land, so they have a lot of fish pen solar in place – we’re trying to bring that model here for implementation," he says.

Joint ventures are another path forward, alongside expansion into new regions.

"We’re traditionally focused in North Luzon, but we are open to venturing out into other areas like VisMin, since the demand is also rising for electricity there," he adds.

Scaling operations, however, requires significant capital.

"First of all, we have to maintain a debt-to-equity ratio strategy of 70:30. So, we do have borrowings with banks like everybody else, but we maintain this ratio," Nepomuceno says.

"At the same time, we are a publicly listed company on the Philippines Stock Exchange, so this is a fundraising mechanism."

When it comes to loans, Raslag favors local banks.

"A lot of the foreign banks offer a short runway," he points out. "And when you’re building a greenfield project like solar, it takes maybe six months for the permits alone. And the actual build? Maybe a total of two years conservatively.

"So if you have a short runway, you’ll run into problems. But the local banks have longer runways, which are matched with our requirements."

Venture capitalists are also showing interest, but Raslag prefers long-term funding options over short-term alternatives.

A question of balance

According to Nepomuceno, such growth also requires careful planning around grid stability.

"With a lot of renewable energy coming in, it makes sense to invest in battery storage," he says.

"Right now in our latest project, we are piloting a hybrid combined solar and battery. And we’re also considering a standalone battery that will be connected to the grid. So it all adds to grid stability."

Regulatory risk is another major factor. A recent moratorium on land conversion initially caused delays until solar projects were given an exemption.

"The energy sector is a very regulated industry," Nepomuceno says. "So any change in the permits, whether it’s from the national government or the local government unit, impacts us."

The company’s latest project in solar power hotspot Nueva Ecija faces similar challenges, with additional permit requirements now in place.

"It adds layers of additional requirements, which is normally a deal-breaker for other organizations like foreign companies," he says.

"But in our case, since we’re a local company, we know how to navigate these obstacles. So it may cause some delay, but we will be able to work around it.

"That’s one of the main challenges – the permitting. It takes time, anywhere from six months or more. And there have been initiatives like green lane certification, which we’re trying to explore through the Board of Investments Philippines."

Innovating through challenges

The level of red tape can deter foreign investors, Nepomuceno adds.

"But if they can ease up on some of the permitting requirements, I think this would mean a faster speed to market and a more investor-friendly environment," he notes.

Raslag’s agrivoltaic initiatives introduce further complexity.

"We tried to implement good agricultural practice, but we were initially disqualified as our land has been converted to industrial," he explains. "Then, with a shift in rules, we were able to secure PhilGAP certification.

"So these are some of the challenges right now. You need to convert industrial land in order to put up a solar plant, but at the same time, you’re going to have mixed use with agriculture. You cannot comply with certain agricultural requirements."

Despite these challenges, Nepomuceno says innovation remains central to Raslag’s strategy.

"We do not believe in hype, in just deploying innovation for the sake of deployment, rather we have a solutions-based mindset," he stresses.

This approach extends to partnerships with companies such as BDO Unibank, JDN Realty and the standout partner among Raslag’s accredited vendors, Huawei Technologies Philippines.

"Huawei takes care of clients needs every step of the way in a very professional manner. From the planning stage, the company has provided a mock-up and comparative analysis of usual pain points and potential solutions," Nepomuceno notes.

"We were invited to the Discovery Center at Bonifacio Global City, and it was a very stimulating experience seeing the history of Huawei’s expertise.

"The team also thinks of ways to add value, such as offering access to spare parts and a warehouse near our project site, proving peace of mind and ensuring that spare parts will be available for the long run."

These deep professional relationships also reflect a philosophy shaped from another tale – this one drawn from Nepomuceno’s own grandmother.

"We have experienced solid relationships with our partners that have transcended to the next generation. That’s something we’re proud of," he says.

"It comes from a deep sense of trust and commitment on our promises, which goes back to our grandmother, Ima Nepomuceno, who taught us the value of the Square deal. Basically, what it means is fair for all – it’s a win–win situation."

And this aligns with Nepomuceno’s personal, long-term and audacious goal for Raslag: to take the company from local to international.

"As the saying goes, ‘The journey of a thousand miles begins with a single step,’" he concludes.