The Department of Energy (DOE) has sought the assistance of the Bangko Sentral ng Pilipinas (BSP) and multilateral development banks to improve financing options and secure longer loan periods for renewable energy (RE) projects.
Speaking at the fifteenth session of the International Renewable Energy Agency (IRENA) Assembly, Energy Undersecretary Rowena Cristina Guevara cited the need to reduce the cost of RE in the country.
While developers can generally secure project financing, Guevara noted that the cost of emerging RE technologies like floating solar, offshore wind (OSW), and waste-to-energy (WTE) remains a challenge.
"Together with RE developers, we have faced challenges such as permitting, consenting, and securing Environmental Compliance Certificates (ECCs) for OSW, among other issues that cause delays in RE development," Guevara explained. "We are starting a de-risking facility for geothermal to encourage exploration."
She added, "While we are confident that RE developers will be able to achieve financial closure for projects, the next hurdle would be the price of RE technologies such as floating solar, OSW, and WTE."
To address these challenges, the DOE has requested assistance from the BSP and development banks in areas such as concession financing and extending loan periods for pumped storage hydro, geothermal, and smart grid projects.
Guevara also noted ongoing efforts in energy transition trading, which aims to link the retirement of coal plants with the integration of replacement RE power. This initiative is considered a cost-effective strategy for promoting clean energy adoption.
"Developing countries are often the most vulnerable to the impacts of climate change, despite contributing the least to global emissions," Guevara stated.
"It is essential that those who have historically benefited from fossil fuels now support those who are striving to achieve a sustainable future. Energy transition is a shared responsibility, and we must act with urgency, solidarity, and fairness," she concluded.