The Development Bank of the Philippines (DBP) has recently announced a new loan program aimed at expanding support for utility-scale solar power developers, as well as support renewable energy (RE) investments in the country.
DBP President and CEO Emmanuel Herbosa said the government-owned bank’s Solar Merchant Power Plant Financing Program aims to support funding for power developers who intend to sell electricity through the Wholesale Electricity Spot Market.
Qualified loanees will be given a lengthy tenor of up to 12 years plus a one-year grace period on principal payment.
“DBP is ready to provide financing to viable solar power developers for their capital expenditures such as the construction or expansion of their infrastructure facilities, acquisition of machineries and equipment, among others,” Herbosa said in a statement.
Under the program, a maximum loanable amount of up to 60% of the total project cost may be requested for projects located in Luzon and up to 50% for those in the Visayas. Completed solar merchant power projects may also qualify for reimbursement within a year after completion.
Herbosa said the program aims to contribute to the government’s goal of increasing solar photovoltaic capacity in the country to 15.29 gigawatts (GW) by 2030 from 2.16GW in 2020.
“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% of the country’s power generation mix by 2030, as set in the Philippine Energy Plan,” he added.
DBP is the country’s fifth largest bank.
The Bangko Sentral ng Pilipinas, meanwhile, urged local banks to finance the country’s energy transition. This follows the launch of the Asian Development Bank’s partnership with the government for the implementation of the energy transition mechanism in the country.