RE Initiatives Delivery and Financing Mechanisms
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The CBRED component that addresses the problems/issues surrounding the delivery of energy services (power and non-power) using RE systems.
This project component is coming up with financing mechanisms that will support RE application projects involving the employment of RE delivery mechanisms. A number of RE service delivery projects will be financed using the funds that will be allocated for the financing schemes to showcase the applicability, viability and sustainability of both the financing and delivery mechanisms. The results and experiences derived from the supported RE projects will be documented and disseminated. The success of the project implementations will demonstrate the effective and feasible process of designing, developing, implementing, and particularly financing, of RE system projects. Successful RE projects supported by the program would also demonstrate the technical and commercial viability of RE systems in the country. This in turn is expected to facilitate increased interest and enhanced investments in future RE system (both electricity and non-electricity) projects in the Philippines.
Objectives
The objective of this component are
- to establish financing mechanisms that will support projects that employ innovative RE delivery mechanisms;
- to enhance the capacity of the project developers in meeting the requirements and criteria of financing institutions; and
- to generate interest and support from potential investors and donor agencies on the financing of pipeline RE projects developed through the Project Funds.
Activities
The activities under this subcontract are
- RE Fund Establishment;
- Assistance Services to Financing Applicants;
- RE Demonstration Program;
- Selection of RE Projects;
- Monitoring and Evaluation of Project Sites; and
- Sustainable Financing Program Design.
Three RE funds shall be established. These are
- Project Preparation Fund (PPF)
- a partial grant funds intended to support the cost of preliminary activities such as market assessment, technical data gathering, site assessment, engineering design and feasibility study;
- Loan Guarantee Fund
- a financing mechanism meant to provide guarantee to an RE project loan that may require a high level of secutirization or for small high risk projects where proponents are inadequately capitalized and/or cannot provide sufficient collateral. This is intended to spur lending to RE project proponents by spreading the risks among the guarantor(s), the lender and the borrower-proponent; and
- Micro-Finance Fund
- a loan mechanism intended to finance small-scale, including household level type of projects, in remote, off-grid areas. The loan to be provided shall have relaxed terms to expand RE services to a greater number of beneficiaries.
Expected Outputs
- Financing mechanisms are established that will support projects that employ innovative NRE delivery mechanisms
- The capacity of the project developers in meeting the requirements and criteria of financing institutions is developed/enhanced
- The interest and support from potential investors and donor agencies on the financing of pipeline NRE projects developed through the Project Funds are generated
REIAC Sub-Committee on RE Initiatives Delivery and Financing Mechanisms
MEMBERS:
- PNOC – EDC
- ANEC
- UNDP
- DOE – REMD
- WWF
- DBP
- DENR-IACCC
- NEA
- NEDA
- NPC – SPUG
