ENERGYEAR Philippines 2026 recap: Panel highlights early-stage RE funding gaps despite strong investor interest

The Philippines remains an attractive market for renewable energy investment, but capital is increasingly favoring only to projects that are already well-prepared and guaranteed, panelists said during a discussion at Energyear Philippines 2026.

Speakers described the country as a seller’s market for renewable energy, with strong investor interest driven by policy support and demand for clean power. However, they noted that competition among investors is centered on a limited pool of projects that are already considered bankable.

Aljon Del Rosario, managing director of Index Partners, said capital continues to seek Philippine renewable assets, but investors are more selective than before. He said projects that demonstrate readiness and credibility are more likely to attract funding amid heightened competition.

Banks and investors are now prioritizing projects with clear offtake arrangements, credible sponsors, and realistic delivery timelines. Jennyvie Lopez, director for corporate sector and financial institutions coverage at ING, said financers focus on execution certainty when assessing financing risks.

While funding is available for projects that are close to construction or already contracted, panelists said early-stage development remains a weak point in the project pipeline. Matthew Carpio, head of transaction advisory at Climate Smart Ventures, said capital for development-stage projects is harder to secure due to higher risk.

“There is plenty of money for projects that are already de-risked, but much less for early-stage development,” he said.

The lack of early-stage funding, panelists said, slows the flow of new projects entering the market. Smaller developers are particularly affected, as they often lack the balance sheet strength or track record needed to absorb development risks before financing even becomes available.

Project structuring decisions made early in development were also highlighted as critical to unlocking capital. Del Rosario said choices related to ownership structure and asset grouping can significantly affect the range of investors willing or able to participate. Poor structuring, he warned, can narrow financing options and complicate transactions later on.

From a developer’s perspective, fixing structural issues late in the process can be costly. Mark Brian Dastas, head of project finance at SN Aboitiz Power, said revisiting fundamentals during financing often leads to delays and higher transaction costs, especially when investor requirements are not met upfront.

Panelists agreed that returns alone are no longer enough to attract capital at scale. Investors now look for projects that combine readiness, sound structure, and execution capability, particularly as deal sizes grow and financing becomes more disciplined.

As investor appetite remains strong but selective, will gaps in early-stage funding and project preparation slow the overall pace of renewable energy development in the Philippines?

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