The Asian Development Bank (ADB) is working with the Philippine government to develop a pipeline of energy projects aimed at accelerating renewable energy deployment, improving energy efficiency and cutting diesel use in off-grid communities, BusinessWorld reported.
Citing ADB Country Director for the Philippines Andrew Jeffries, the report said the multilateral lender is identifying priority projects for future financing through a combination of sovereign and private sector support.
“ADB is continuing to support the Philippines in scaling up renewable energy by providing sovereign and non-sovereign financing, in addition to transaction advisory services,” Jeffries told BusinessWorld, adding that the bank is working with the government to identify projects for future funding.
According to the report, the proposed pipeline includes support for a government energy management plan, a geothermal resource derisking facility to encourage greenfield development, and initiatives to reduce diesel consumption in off-grid areas.
The projects are being developed as the Philippines seeks to increase the share of renewable energy in its power generation mix to 35% by 2030 from around 26% currently.
BusinessWorld reported that ADB is also supporting the government’s energy transition through policy-based lending designed to strengthen regulations, diversify energy sources and expand access to electricity.
Jeffries said the Philippines’ largely privatized power sector and established regulatory framework have helped attract private investment, citing strong participation in the government’s Green Energy Auction (GEA) programme.
The Department of Energy awarded contracts to 123 winning bidders under the fourth round of the GEA last year and plans to offer at least 25 gigawatts of additional renewable energy capacity through annual competitive auctions beginning this year.
“The successful implementation of a green energy auction program is evidence that the country is able to attract much needed investment in clean energy,” Jeffries told BusinessWorld.
The report came as ADB officials called for greater regional energy cooperation. ADB President Masato Kanda said the lender’s newly launched Pan-Asia Power Grid Initiative would help strengthen cross-border electricity networks and mobilise private capital to support the region’s energy transition.