The Development Bank of the Philippines (DBP) launched a new loan program for utility-scale solar power developers in the country and boost investments in the renewable energy sector, President and Chief Executive Officer Emmanuel G. Herbosa announced Dec. 28, 2021.
Specifically, the bank’s Solar Merchant Power Plant (SMPP) Financing Program will fund solar power developers selling electricity via the Wholesale Electricity Spot Market, with a longer tenor of up to 12 years plus a one year grace period on principal payment.
The new program is expected to contribute to the National Government’s goal of increasing solar photovoltaic capacity in the country from 2.16 Gigawatts (GW) in 2020 to 15.29 GW in 2030.
“DBP is ready to provide financing to viable solar power developers for their capital expenditures, such as construction or expansion of their infrastructure facilities, acquisition of machineries and equipment, among others,” Herbosa elaborated.
Under the SMPP program, qualified borrowers are entitled to a maximum loanable amount of up to 60 percent of the total project cost for projects located in Luzon, and up to 50 percent for projects in the Visayas.
Borrowers can also reimburse eligible solar merchant power projects, provided the project does not exceed one year from date of completion.
As a bank for the environment, DBP aims to boost investments in the green energy sector and proactively support the national goal for renewable energy to account for 35 percent of the country’s power generation mix by 2030, as set in the Philippine Energy Plan (2018-2030).