Singapore – Asian Development Bank (ADB) is considering increasing it to one billion dollarsThere are plans to strengthen the Philippine grid system in anticipation of the entry of new capacity coming from renewable energy, especially offshore wind.
“We are looking at strengthening your national grid,” ADB Senior Energy Director Priyantha Wijayatunga told reporters on the sidelines of the Asian Clean Energy Summit here on Wednesday.
Mr Wijayatunga said a request had been sent to ADB to support the country's grid, adding that the transmission system “has not been sufficiently strengthened to absorb renewable energy from offshore wind in recent times.”
ADB'sFIsial said the loan could be extended as sovereign or non-sovereign financing.
“Maybe even up to about a billion dollars. It could be. It's a lot of money, not small money, because when it comes to these big investments you need a lot of money,” he said when asked how much the loan could entail.
While the loan may take some time to finalise, Mr Wijayatunga said grid investment is necessary to allow capacity uptake from new renewable energy projects, particularly heavy loads coming from offshore wind.
The government is preparing to hold the fifth round of green energy auctions this year, which will focus exclusively on fixed-bottom offshore wind technology with an installation target of 3,300 megawatts (MW).
As of April, the Department of Energy has awarded 1,392 renewable energy service contracts, equivalent to a potential capacity of 151.53 gigawatts.
Currently, the country's nationwide transmission system is operated by the National Grid Corp. of the Philippines (NGCP) through a 25-year concession and a 50-year congressionally granted franchise.
NGCP officially began operations in 2009 as a power transmission service provider with the right to operate and maintain the transmission system and related facilities, and the right to exercise the right of eminent domain as needed to construct, expand, maintain, and operate the transmission system.
Ahead of the proposed financing support to the grid system, ADB previously approved a loan package that will help establish a $190 million Geothermal Resource De-risking Facility to encourage geothermal investment in the Philippines.
The government plans to launch a geothermal de-risking facility by the second half of 2026 to help deal with exploration risks.
The facility is designed to share the cost of exploration and drilling, covering up to 50% of the expenses Through loans convertible into grants if drilling fails.
The Philippines has a geothermal energy capacity of 1,952 MW, making it the world's third largest geothermal producer. , Sheldin Joy Talavera
