Domestic energy storage project financing options in Philippines 2030

How can the Philippine government achieve a sustainable future?

The Philippine government has earmarked that renewable energy make up 35% of its energy mix by 2030 and 50% by 2040. Policies to help reach those goals include active participation in the Green Energy Auction Programme (GEAP).

Can energy storage drive the modernisation of power infrastructure in the Philippines?

Energy storage is a technology that can not only drive the modernisation of power infrastructure in the Philippines, but also attractor investors in the country’s economy. “However, as a utility developer, we are looking at challenges in the implementation of the policy framework, and at technology challenges,” Briones said.

How to encourage sustainable and green project financing in the Philippines?

Last year, the central bank of the Philippines, the Bangko Sentral ng Pilipinas (BSP), proposed the introduction of new incentives to encourage sustainable and green project financing in the country. However, legislation needs to be passed establishing specific banking guidelines, criteria and benchmarks for renewable energy project financing.

Is energy storage a key enabler for the Philippines' 'ambitious' energy goals?

The government sees energy storage as a vital enabler for the Philippines’ “ambitious targets” for renewable energy, Marasigan said, aiming for 35% renewables in the energy mix by 2030, 50% by 2040 and continuing to rise from there.

How much money will the Philippines spend on gas projects in 2021?

From 2021 to 2023, local banks financed USD 1.2 billion for gas projects, up from only USD 296.5 million in funding from 2009 to 2020. Gas financing will likely escalate with both local and international banks keen to enter the sector, since the Philippines is building a major LNG import terminal and gas-to-power project.

What role does the power sector play in the Philippines?

The power sector in the Philippines accounts for 58% of the country’s overall carbon emissions and will be an important driver of domestic emission reduction efforts to meet national climate and energy targets. Renewables, such as offshore wind, are expected to play a key role in the transition toward a low-carbon energy mix.