July 17, 2024: In a significant collaborative effort, the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) and USAID Energy Secure Philippines convened a stakeholder meeting at the Holiday Inn in Makati. The event brought together 42 participants, representing various sectors within the power industry.
The meeting featured a break-out group comprising representatives from regulatory bodies, financial institutions, and market or power utility companies. Their primary objective was to identify gaps hindering climate resilience financing in the power sector. By fostering dialogue and cooperation, they aimed to propose common initiatives that would enhance the industry’s ability to withstand climate challenges. Mr. Fernando Martin Y. Roxas, President and CEO of the National Power Corporation, highlighted the corporation’s strategic initiatives centered around renewable energy and its commitment to sustainable and climate-resilient power solutions in the Philippines.
The meeting emphasized the need for enhanced collaboration between regulatory agencies such as ERC, NEA, and DOE. There is a need to streamline the evaluation process of the Electric Cooperatives Emergency and Resiliency Fund (ECERF) and adopt a holistic approach to improve community revenues. Additionally, exploring alternative funding sources like crowdfunding and grants, as well as technical innovations and assistance from initiatives such as the Green Climate Fund (GCF), was highlighted.
The financial institutions identified a lack of extensive knowledge on energy resiliency and the need for capacity building to equip them with the necessary technical skills. Restrictive budgetary requirements and the need for specific programs for renewable energy and climate resilience training were also discussed.
In the power utilities sector, the importance of public awareness and engagement through the Resiliency Compliance Plan (RCP) was stressed. Regular training and adaptation to regulatory programs, addressing delays in approvals of applications and permits (including from LGUs), and tackling vulnerabilities in distribution lines and supply chains (fuel, biomass) were key points. Issues such as delayed payments, computation of cash incentives, and the low priority of conventional power plants (e.g., diesel, coal) for banks were noted. The need for government guarantee support was also underscored.
Representatives from the energy regulatory sector include the Department of Energy, National Power Corporation, Energy Regulatory Commission, and National Electrification Administration. In attendance from the financial sector are the Bangko Sentral ng Pilipinas, the Development Bank of the Philippines, the Land Bank of the Philippines, the Philippine National Bank, and the Bank of the Philippine Islands. Additionally, the power utility sector is represented by DMCI Power Corporation and Sunwest Group Holdings Company Inc.
This collaborative endeavor signifies a crucial step toward securing a more resilient and sustainable energy future for the Philippines.