Manila: The Manila-based Asian Development Bank (ADB) is committed to helping the Philippines with its energy-sector projects given the economy’s rising demand and huge potential to be a regional player. In an interview on the sidelines of the Singapore International Energy Week (SIEW) on Wednesday, Priyantha Wijayatunga, ADB Energy Sector Office Senior Director for Energy, mentioned that the multilateral lender ‘has not been engaged in the energy sector for some time in the Philippines’ but noted that ‘this is opening up and hopefully for a longer relationship.’
According to Philippines News Agency, Wijayatunga declined to give any figure on how much ADB intends to lend for the Philippines’ energy-related projects but said this will likely reach ‘even up to about a billion dollars. because you need a lot of money when it comes to these large investments.’ One such project is the improvement of the national grid, he said, citing this system needs to be strengthened to handle renewable energy (RE) from offshore wind, among others.
To date, this sector is managed by the National Grid Corporation of the Philippines (NGCP), which has been an issue for the ADB since it only provides financing through a partnership with the government, Wijayatunga said. ‘So, in a way, it might take a while, but it’s necessary, as you know, because the Philippines is quite interested in developing their offshore wind. And so if you want to bring offshore wind into the grid, you need grid investments. And that’s what we’re looking at,’ he elaborated.
Wijayatunga noted that other Philippine energy-related projects that ADB will assist include those focused on energy efficiency among public infrastructure, transmission, and the use of new technologies to provide power in remote areas. He mentioned that several projects are currently being piloted in small communities and island communities to ensure sustainable power and improve residents’ lives.
Overall, these projects aim to ensure that the country will have a sustainable and adequate power supply, which is essential as the domestic economy continues to expand, he stated. The ADB official highlighted the significance of clean power for the Philippines, noting its role as a major player in the services and manufacturing sectors.
Wijayatunga added that the Philippines needs to enhance its energy-sector capacity concerning the ASEAN Power Grid. The ADB, the World Bank Group, and the Association of Southeast Asian Nations (ASEAN) have collaborated on the ASEAN Power Grid, with the agreement announced during the 42nd ASEAN Ministers on Energy Meeting held in Kuala Lumpur, Malaysia last Oct. 15.
Results from the ASEAN Interconnection Masterplan Study III, published by the Heads of ASEAN Power Utilities/Authorities (HAPUA) and the ASEAN Centre for Energy (ACE), indicated that the APG requires an estimated USD764 billion for the construction of transmission and power generation facilities capable of adopting high levels of variable RE technology. The ACE stated that the ADB has committed up to USD10 billion in financing over the next 10 years for the program, with an initial USD6 million for technical assistance, funded along with the United Kingdom, the European Union, and other partners.
In turn, the World Bank will be providing an initial USD2.5 billion under its Accelerating Sustainable Energy Transition Program, with about USD12.7 million as a seed grant for ACE to prepare bankable projects and ready them for the next phase of support for the APG.
