Financial Adviser: 5 Business Lessons Everyone Can Learn from Oliver Tan, Co-Founder and CEO of Citicore Renewable Energy Corp.

Renewable energy projects are not built on ambition alone. They require large amounts of capital, disciplined execution and the ability to turn long-term plans into operating assets. These are areas that Oliver Tan has spent much of his career learning to manage.

As president and CEO of Citicore Renewable Energy Corporation (CREC), Tan is helping lead one of the Philippines’ most ambitious renewable energy expansion programs. His path to the energy business, however, began not as an engineer or power developer, but in finance and infrastructure.

Tan graduated from the Philippine School of Business Administration with a degree in Business Administration. He later built his career within the Citicore-Megawide Group, where he gained experience in corporate finance, infrastructure development and large-scale project execution.

Before taking on a leadership role in renewable energy, Tan served as CFO of Megawide Construction Corporation. The position exposed him to the financial demands of major infrastructure projects, from raising capital and managing investments to evaluating projects. This experience led him to build Citicore Renewable Energy Corporation.

As one of CREC’s co-founders, Tan played a key role in expanding the company’s renewable energy portfolio. He spearheaded the completion of five greenfield solar projects with a combined installed capacity of about 225 megawatts and led the acquisition of five additional solar assets with approximately 60 megawatts of capacity.

Citicore eventually expanded beyond the development and operation of renewable energy projects. The group created Citicore Energy REIT Corporation, or CREIT, which became the country’s first energy-focused real estate investment trust when it listed on the Philippine Stock Exchange in 2022.

Tan serves as president and CEO of both CREIT and CREC, which gives him the responsibility of not only building renewable energy assets but also developing structures that can attract capital to finance further expansion.

CREC itself went public in 2024, raising about P5.3 billion from its initial public offering. The listing provided the company with additional capital to support its aggressive growth strategy.

Under Tan’s leadership, CREC is pursuing its “5GW in 5 Years” program, which aims to develop around five gigawatts of renewable energy capacity. The strategy reflects the scale of the company’s ambition as electricity demand continues to grow and the Philippines seeks to increase the contribution of renewable energy to its power supply.

Tan’s career, which spans corporate finance, solar project development, the creation of a renewable energy REIT and CREC’s public listing, shows how financial discipline can provide an important foundation for a capital-intensive business.

How did a finance executive make the transition from infrastructure to renewable energy and help build one of the country’s fastest-growing clean energy platforms? What lessons from Tan’s journey can entrepreneurs learn about raising capital, managing risk and scaling a business that requires billions of pesos in investment?

Here are the five business lessons every entrepreneur can learn from Oliver Tan, President and CEO of Citicore Renewable Energy Corporation:

ALSO READ

Financial Adviser: 5 Business Lessons Everyone Can Learn from Building Tycoon Edgar Saavedra, founder and CEO of Megawide Construction

Financial Adviser: 5 Business Lessons Everyone Can Learn from Michael Cosiquien, Founder and CEO of ISOC Holdings

In business, many skills are developed more effectively through experience than through theory alone. Entrepreneurs often face situations where there is no perfect formula, such as launching a product, negotiating with suppliers or building a team.

Actual experience sharpens judgment. Each decision produces feedback, and every success or mistake helps leaders understand what works, what does not and what needs to change.

Tan’s first classroom was the stock market. Although he read books about Warren Buffett and studied financial statements, he did not stop at theory. At 17, he was already trading stocks in Binondo. This gave him something books could not provide which is exposure to real money and the consequences of his own decisions. Trading forced him to develop judgment because every decision produced an immediate result. He could see whether his analysis worked or failed.

The same pattern appeared when he entered the building materials business. When the stock market became difficult, Tan did not simply wait for conditions to improve. He tried another business, imported building materials and learned how to sell to contractors. That venture eventually brought him into contact with Megawide.

His involvement in Megawide’s IPO represented an even greater learning opportunity. Tan had been an investor who bought IPOs, but he had never taken a company public. When Edgar Saavedra challenged him to do it, he accepted and spent 18 months working on the IPO on a success basis.

Instead of waiting until he had formal experience in investment banking or corporate finance, he acquired those skills through the actual process of preparing the company for listing and approaching potential investors for Megawide.

When Tan he was appointed CFO, he suddenly had to deal with auditors, banks, financial institutions and the requirements of a publicly listed company. Instead of pretending that his previous experience was enough, he treated the job itself as another education.

“I actually became fascinated with the capital markets as early as 15 years old,” Tan says. “I was still in high school then, and I would read a lot of books about Warren Buffett and other Wall Street idols.

"During my college years, my family enrolled me in electrical engineering at UST. But it really wasn’t for me. I was naturally more of a finance person. Instead of going to school, I was cutting classes and going to Binondo, along Juan Luna, to trade stocks.

“I started trading as early as 17 years old, during my first year in college. That was really where my interest in the capital markets began. Eventually, I got kicked out of electrical engineering because hindi ako pumapasok. I transferred to PSBA and finished Business Administration.

“I started trading in 1994 and continued until around 2000. When I started, those were the days of the IPO darlings like Petron, Piltel and other IPOs.

“When the market became difficult, I went into other businesses. I imported building materials while I waited for the stock market to find its bottom. Megawide became one of my clients, so our relationship initially started as vendor and customer. I eventually became close to Edgar (Saavedra) and Michael (Cosiquien) as a subcontractor and supplier.

“They later learned that I was really a finance person and that I was fascinated with the financial world. I vividly remember December 23, 2009, one day before Christmas Eve. Edgar and I were talking on the phone, just the usual kwentuhan, when he suddenly asked me, ‘Do you think Megawide is IPO material?’

“I told him, ‘Why not?’ Then we laughed because none of us really took it seriously at first.

“But it was part of the dream. We used to call ourselves ‘promdi’ because we came from the provinces. Edgar was from Zamboanga, and I was from Atimonan. Mataas ang pangarap namin. We came from the province to Manila with big dreams.

“So when I said, ‘Yes, why not?’ ganon. Tawa kami, tapos nung after that, sabi nya, ‘Oh sige, if you think it can be done, why don't you do it? Pro bono ha.’ Of course, that started as a joke, pero naging seryoso.

“So I worked on it pro bono for 18 months. Basically, it was on a success basis. You know the IPO prospectus of Megawide? I wrote it page by page, end to end.

“While doing the Megawide IPO, it was obviously very difficult. I remember there were funds that we approached. There was one that I recall very vividly. Sabi nya, ‘Balikan mo ako if you are already a $1 billion market cap company.’ And we were nowhere close to that.

“So it was very difficult. And lo and behold, the only person who took a bet on us came from the richest family in the Philippines. That was Big Boy of SM. When we made the pitch to the family, sabi nya, ‘Sige, invest ako.’ I think that was because we were able to demonstrate our construction capabilities through the projects we had built for them. So we were very happy and very shocked na magi-invest sila. And the rest was history.

“When I came in, I thought it was just going to be a one-time gig. Parang, after the IPO, I would earn whatever success fee I was entitled to, and then I would go off and pursue my own dream.

“But after the IPO, sabi nila ni Ed and Michael, ‘Why don’t you join us na lang?’ Parang, mataas pangarap mo, eh kami mataas din. Parang, okay, let’s do a Voltes V na lang. Why don’t we just join together and pursue our dreams?

“So I joined Megawide. They appointed me CFO. So syempre, double time. One thing that really helped me as CFO was that we had one of the best auditors. Habang nag-a-audit, nag-on-the-job training ako. Inaaral ko yung balance sheet and everything.

“Walang tulugan don. It was really actual learning. Pero earlier naman, I already read financial statements eh. Kasi I did both fundamental and technical analysis when buying stocks. So I would really read the financial statements nung mga list ko.

“But once you’re listed, you’re forced to learn. And of course, there were also people who helped along the way. To me, it wasn’t the usual school learning. Ito talagang parang auditor tinuturuan ako. I also had to learn all the financial lingo. Kasi talking to banks, talking to different financial institutions. I would ask the auditor, ‘Ano bang ibig sabihin nitong lingo na ‘to?’ Ganon.”

Taking calculated risks allows a business to pursue opportunities that may not be available through a purely conservative approach. Growth often requires decisions with uncertain outcomes, such as entering a new market or expanding into a new industry.

What separates a calculated risk from a reckless one is the discipline behind the decision. Entrepreneurs weigh the potential upside against the possible loss, determines how much the business can afford to risk and looks for ways to limit the downside. This allows a company to experiment without putting the entire business in danger.

Tan’s approach to calculated risk appears to begin with a clear strategic reason for taking the risk in the first place. What makes the Mactan-Cebu airport story particularly revealing is how Tan controlled the size of the initial downside. Megawide had no experience operating an airport, yet his first proposal was not to commit billions of pesos immediately. It was to spend P1 million on the bid documents.

He was already prepared to lose that amount. In effect, he treated the P1 million as the price of acquiring information and experience. The possible loss was limited, while the knowledge and opportunity that could come from participating were potentially much larger.

This suggests that Tan viewed risk in stages. He did not need certainty before taking the first step. He needed the first step to be survivable. By entering the bidding process, Megawide gained access to information, experience and relationships that it would not have acquired from the sidelines. Even if it had lost, Tan believed the company would have learned enough to justify what he called “charge to tuition.”

Another feature of his approach was that he did not try to compensate for Megawide’s lack of experience by pretending the capability already existed. Instead, the company found a partner, GMR of India that had what it lacked.

Tan’s decision to move into utilities followed the same broader logic. Transport and utility infrastructure were not random diversifications. Tan wanted Megawide to leverage its existing engineering capabilities to create assets that could produce stable recurring income. This meant the company was not completely abandoning what it knew. It was using an existing strength as the foundation for entry into adjacent businesses.

Tan was willing to accept uncertainty, but he tried to make sure that the downside of the first decision was limited while the potential upside remained open-ended.

“During my time as CFO, I introduced the idea that we had to diversify,” Tan says. “Kasi if we remained purely a construction company, cyclical, and it’s not sexy sa stock market, so I came up with a business plan for diversification.”

“So we diversified. I introduced the idea that we should leverage our engineering expertise and build infrastructure assets. We identified two areas: transport and utility.

“For transport, that’s why we went into airports and other transport infrastructure. Modesty aside, yes, that was part of the business plan I introduced. That time kasi the PPP program was opening opportunities. So we said, transport.

“When the Mactan-Cebu airport bid came out, sabi ko, ‘Bili tayo bid documents. One million lang naman eh. We can join, and we will learn from it.’ Kahit wala tayong alam how to run an airport.

“The bid documents cost P1 million, just to be able to join the Mactan-Cebu tender. Sabi ko, ‘Sunog tayo ng one million. At least, we learn. I’m sure we will learn from it kahit saling pusa tayo.

“Syempre, no one really took it seriously. I presented the idea to Edgar and Michael. E di, ‘Oh sige.’ Parang P1 million, I’m sure we would learn from it. Charge to tuition kung. Saling pusa kami, we attended the bid.

“Then syempre, everyone needed to partner with an experienced airport operator. All the big players naturally gravitated toward the who’s who of airport operators.

“Walang gustong makipag-partner sa Megawide, diba? Then there was this Indian airport operator that also wanted to join. They approached the PPP Center, and eventually nagpa-recommend sila sa PPP. So sabi nung PPP, ‘Why don’t you try Megawide?’ Kasi nag-prequalify din kami.

“So si PPP ang naging playing Cupid sa aming dalawa. Ang joke nga namin, yung dalawang sawi nag-partner. Kasi no one wanted to partner with us, and no one wanted to partner with them either. And then kami nanalo. Nung nanalo kami, wala, nagkatinginan lang kami, parang nanalo tayo? Oo, nanalo tayo. Ok, so paano?

“They were actually very good because they had been operating the Delhi and Hyderabad airports. So through GMR, we were able to gain the airport operating expertise that we needed.

“Then came the next problem. Wala kaming pera. Before the bid, we were already able to raise corporate notes, but of course it wasn’t enough. Kasi that time, we didn’t know that the bid would eventually reach P16 billion. Parang we were ready up to P5 billion, pero P16 billion pala ‘to?

“Buti the Sy family supported naman, together with Metrobank and BDO. So yun nga, and we did it, that was my first and largest project financing structure that I've made in my life. It was a P35 billion project financing.

“Then we moved into utility. That was around 2015, when we identified transport and utility as the two areas we wanted to pursue. Utility eventually gave birth to our renewable energy arm, Citicore.

“Basically, the whole thesis was that whatever infrastructure we could build, we should turn into infrastructure assets that could give us stable, recurring income. That was the idea.

“Because construction is cyclical eh. Feast or famine yan eh. Pag maraming project kang nakuha, okay. Pag wala, wala. Hindi naman mahirap i-convince sila Edgar and Michael. I think they’re very entrepreneurial din naman eh. They were focused on construction, yes, but I think they were able to understand the idea kasi magaling din naman sila.”

In business, competing head-on with larger or more established players can put a company at a disadvantage. A better approach is to identify an area where its existing strengths or expertise can create an edge.

The opportunity, however, is only the beginning. Entrepreneurs still has to prove that the business can work by controlling costs and building capabilities. This often requires patience because a promising market may still take years before it becomes commercially viable.

Tan saw that Megawide did not need to compete where the biggest players were already strong. Instead, it could enter a market where its existing engineering skills could give it an advantage.

Coal was already dominated by established power companies, while solar was still relatively new. Tan believed Megawide had a better chance to build expertise and compete in solar before the market became crowded.

However, when they missed the feed-in tariff deadline, it immediately weakened the business model. Instead of chasing growth while the economics remained weak, Tan focused on cost control, cash flow and debt servicing. This reduced the financial pressure on the business and gave it more time to recover.

His persistence kept the company committed to solar, but he also controlled how much financial strain it could absorb. This allowed the business to survive long enough for industry conditions to improve and for new financing options to emerge.

When operating improvements alone were not enough, Tan used his finance expertise to address the capital side of the business. By packaging renewable energy assets into a REIT at a time when investor appetite for REITs was strong, he a way to unlock capital from its existing renewable energy assets.

Tan’s experience shows that finding an attractive niche is only the starting point. The harder part is developing enough advantages around that niche to remain there when conditions turn against the business.

“When we entered renewable energy, we were one of the first movers. If you look at what we did in construction, we always tried to find a niche market. In construction, we went into precast. Parang niche sya, because if we offered exactly the same thing as everybody else, we would just lose to the competition eh.

“So when we looked at power, we had the same thinking. Eh kung mag-coal tayo sa traditional power, wala tayong advantage. The giants were already there eh. We needed to find a niche market. At that time, solar was still new.

“And because we were an engineering company, ang thinking namin, eh yung high-rise nga tinitira natin, mas mahirap. Itong solar, mas Madali. Syempre, you need to be realistic. Optimist and realist din. Parang, what can we realistically do?

“When we started solar, bleeding kami dyan. Kasi we did not make it to the deadline that would qualify us for the feed-in tariff, so we had to sell the electricity ng palugi. Kasi mahal yung solar before eh, we were bleeding. So we really had to improve operational efficiency, control costs and restructure the business. That was in 2015.

“That period was also one of the sad episodes of our journey. By 2015 and 2016, we had reached one of the peak moments in our journey, We were growing so fast, and apat lang kami eh. It reached a point na parang, okay, we cannot be everywhere. Hindi tayo pwedeng sama-sama sa construction, sa airport, sa PTEX, sa power.

“One of us had to champion a particular business unit, so I took the power business. Eh kasi I cannot lead the construction. Sila dapat, they are the civil engineers, and the property side, sila rin. Si Louie was sa airport. So I took power, and from there, we just tried to grow it.

“But it took around five years before we were able to turn things around. Kasi that time mahal ang solar eh. You needed to sell electricity at around P8 per kilowatt-hour. The government was effectively the only buyer that could pay that price because the feed-in tariff was an incentive designed to encourage investment.

“But we missed the deadline, so we were not able to qualify for it. We ended up selling electricity to the market as a merchant. We were selling electricity at around P3 to P4 per kilowatt-hour. Lugi.

“Kasi para mag-break even yung solar before, mahal. You really had to sell north of P7 per kilowatt-hour eh, so lugi. We had no choice but to tighten our belts and control Opex. We just had to make sure that we generated enough cash flow to service the debt.

“As a CFO, that became one of my hard learnings. During difficult times, talagang you really have to keep a tight grip on your finances. Debt in itself is not bad. As long as may matching cash flow ka. So through the years, I learned financial discipline.

“Then around 2021 and 2022, medyo nag-shoot up yung cost of electricity. So medyo nakakabawi kami. After COVID, yung cost of electricity medyo tumaas. So syempre nakahinga-hinga because instead of selling at around P3, we could now sell closer to P5.

“One reason we struggled before was because mahal yung Capex. Mahal yung panels before, and then I did another financial engineering exercise, which eventually gave birth to the IPO of CREIT. I also organized that. That's the second IPO prospectus that I wrote.

“Kasi that time, if you recall, 2022, parang REIT was the flavor of the month. There was a great appetite for REIT. So when I saw that, I said ah sige I'm going to package this, parang renewable energy theme na REIT, so the market likes it.

“So that helped the turnaround of our renewable energy business. And then, si SM pumasok din ulit sa ganon. They invested in CREIT eh.”

Perseverance helps a business survive periods when results fall short of expectations. The ability to keep going gives the entrepreneur time to correct problems and improve the business rather than abandon it too quickly.

Persistence, however, works best when it is paired with learning. Repeating the same decision despite poor results can turn perseverance into stubbornness. Mistakes should lead to better judgment and changes in how future decisions are made.

Tan’s decision to persevere was based on finding a solution, not simply refusing to give up. Instead of blaming market conditions or ignoring the losses, he focused on what the company could control.

After suffering earlier losses, Tan became more careful about expansion. When the company later raised capital to build new plants, he made sure that each project had an offtake agreement or guaranteed buyer before construction began.

There is also a lesson in how Tan and his partners handled setbacks. The absence of blame allowed them to focus on solving the business problem rather than arguing over who was responsible for it. When entrepreneurs accept that some failures are part of taking business risks, they can spend more energy on finding solutions and less on defending past decisions.

“I think what’s nice about our partnership is wala namang sisihan,” Tan says. “Parang eyes wide open eh. It’s an inherent business risk.

“But we reached a point where I started doubting myself. In fact, before the CREIT IPO, we reached a point where we asked, ‘What if we sell na lang?’

“Cut loss. You know, it’s part of the hit and miss eh. We thought it was a miss. Parang we reached the point where I was ready to throw in the towel and said, ‘Oh sige. I think ang hirap.’

“It was a mix of everything. When the market became very hot on REITs, I thought, sige, I think we can package this. Let’s package it as a REIT product. Because of the REIT, we were able to find a way forward, but we really reached that point where we were ready to give up. Buti na lang.

“Syempre sa journey, it’s not always a walk in the park. You will always have your highs and lows. Those were some of the low moments na parang you question yourself din eh. Parang mali yata ah? The airport was struggling too, but you know, tenacity din.

“Even before the Megawide IPO, same-same story kami. Sila kasi they started the construction business in 1997. Hirap din naman.

“I recall yung parents nila telling Edgar, ‘Pag wala pang nangyari dyan, uwi ka na ng probinsya.’ Real story yan. Lahat kami, we went through that. Alam mo yung kasi we’re first-generation entrepreneurs eh.

“Syempre kami, we wanted to build a name for ourselves. Hindi yung mana na lang from the family business. So hirap. Alam mo, when you’re a first-generation entrepreneur, mahirap. You really have to go through the difficult stages.

“During difficult times, you really have to keep a tight grip on your finances. So we really cut costs, tapos really to the last centavo talagang tsine-check ko yun. There’s no other way of doing it. You really have to manage what you have, tapos magdasal ka na lang.

“When we were losing, being transparent is one thing. You call a spade a spade na. If we cannot sell at P7 per kilowatt-hour, we really bleed eh. So it’s either you address your revenue, your top line, or you address your cost na lang. Pero it’s really a combination of both.

“Kaya that time we thought na, ‘Oh sige, let’s get good assets para to dilute the legacy bad assets,’ and then from a portfolio perspective, ma-address yon. So things like that. And then, you just persevere.

“Then two years after, in 2024, I did the third IPO, which was the parent of CREIT, which is CREC, Citicore Renewable Energy. Basically, the parent is yung developer. It’s like Ayala Land and AREIT. People were amazed and even laughed na parang, ‘You guys did the opposite.’ Kasi di ba lahat sa property, yung parent ang nag-IPO bago yung REIT?

“So we were able to raise funds and used the money to build new plants again. But this time, we made sure that before we built any new plant, may offtake na. May guaranteed buyer na.”

Passion helps entrepreneurs stay committed when results are slow or setbacks appear. It gives them a reason to keep working through difficult periods instead of giving up too quickly.

Humility keeps that passion from turning into overconfidence. Entrepreneurs who are willing to admit what they do not know can learn faster, accept advice and correct mistakes before they become bigger problems.

Gratitude also helps leaders keep perspective. Success rarely comes from individual effort alone, so recognizing the contribution of partners, employees, investors and mentors can strengthen relationships and build trust over time.

Tan’s passion gave him a reason to stay engaged during difficult periods. It was not simply enthusiasm during good times. It became a source of endurance when his project did not work as expected.

His humility also strengthened his ability to grow. Tan did not allow his position as CFO or CEO to stop him from admitting what he did not know. This reduced one of the risks that often comes with senior leadership about the pressure to appear knowledgeable about everything. By remaining willing to ask questions and learn from people with higher expertise, he continued to expand his capabilities.

Tan also viewed success with a strong sense of gratitude. He recognized that his achievements were not the result of his efforts alone, but also of the support he received from partners, employees and investors. By acknowledging their contributions, he was able to build stronger relationships and maintain the trust of people who supported him through both good and difficult times.

“If I look back at my journey, I would say the first lesson is passion,” he says. “You need to make sure the passion is there in whatever journey you pursue. You know why passion is very important? Kasi once you hit a very dry spell, a very difficult season in the journey, it’s so easy to give up if the passion is not there eh.

“But if you’re very passionate about the journey and what you’re trying to achieve, that will naturally produce tenacity and perseverance, kasi passion mo eh. You really love what you’re doing.

“So it’s very important because if you don’t start with something that you’re passionate about, mabilis ka sumuko eh. Building materials was not my passion. My passion was the stock market and finance. That business was there to bridge me over.

“When I joined Megawide, it was still aligned with my passion. I could still do the financial engineering. So passion is very important.

“Second, I think it’s agility and humility. That’s how you grow. The barriers to personal growth normally are yung ego and pride. So even if you’re the CEO, don’t be shy and don’t be afraid to say, ‘Hindi ko naintindihan yon eh. Can you teach me?’ For example, on organizational structure and financial matters. Hindi ako nahihiya na hindi ako marunong. Hindi ako nahihiya na CFO ako ng publicly listed company, tapos sasabihin ko, ‘Hindi ako marunong.’

“Even now as CEO, hindi ako nahihiya. If I don’t understand something, I can say, ‘Hindi ko naiintindihan. Can you teach me? Hindi ako marunong eh.’  That’s how I learn along the way. Kasi wala namang monopoly sa knowledge eh. It sounds ironic, but it’s powerful. That’s how you learn.

“Third, syempre, you really need to be very, very grateful. Grateful to Edgar and Mike, who gave me the break. Grateful to our people. Grateful to our investors like Big Boy and the Sy family. Grateful to the people you work with along the journey, kasi without them, wala ka rin naman eh. Wala ka rin naman dito, di ba? So be grateful.

“As long as you’re grateful and you’re sincere with your business plan and what you’re trying to do, people will see that. Like yung five years hirap na lugi kami. You just need to be sincere. I would tell Edgar, ‘Pasensya ha.’ Kasi these people will stand by you if they see that you’re sincere. It’s really not like binobola mo kami para lang mag-invest.

“When Edgar and Michael eventually separated, for me that was one of the saddest moments in our journey. Parang I always tell myself, could I have handled it differently? I could have been the third force that helped balance things and tried to unite them, but wala din akong nagawa eh.

“When it comes to failure, I try to always look for the bright spot in a dark room. Pag failure, when everything is so dark, imposibleng wala. There’s always a bright spot, no matter how small. That bright spot can lead you to the silver lining.

“You just really need to intentionally search for it. Otherwise, you’ll end up in a pity party and you’ll give up. So dapat mindful. Meron yan. No matter how small that bright spot is, you need to intentionally search for it.”

Henry Ong, RFP, is an entrepreneur, financial planning advocate and business advisor. Email Henry for business advice [email protected] or follow him on Twitter @henryong888