THE DEPARTMENT of Energy (DoE) is seeking support to address the financial gap required for renewable energy (RE) development, an official said on Monday.
Speaking at the 15th session of the International Renewable Energy Agency Assembly, Energy Undersecretary Rowena Cristina L. Guevara said that reducing capital costs is critical for RE developers, paving the way for an affordable energy transition.
“At the end of the day, in order for the energy transition to be just, we need to afford the electricity generated from renewable energy,” she said. “But in order for that to happen, we hope our partners would be able to address the financing gap.”
The government and RE developers have faced challenges in permitting, consenting, and obtaining environmental compliance certificates for offshore wind (OSW), among other issues that cause delays in RE development, she said.
“While we are confident that RE developers will be able to get financial closure for their projects, the next hurdle would be the price of RE such as floating solar, OSW, and WTE (waste-to-energy),” Ms. Guevara said.
“We have requested the help of our central bank and multilateral development banks to figure out concession financing, and even longer loan periods for PSH (pumped-storage hydropower), geothermal, and the smart grid,” she said.
She added that the DoE is considering energy transition trading to connect coal plant retirement with replacement RE power at an affordable price.
“Developing countries are often the most vulnerable to the impacts of climate change, despite contributing the least to global emissions. It is essential that those who have historically benefited from fossil fuels now support those who are striving to achieve a sustainable future. Energy transition is a shared responsibility, and we must act with urgency, solidarity, and fairness,” Ms. Guevara said. — Sheldeen Joy Talavera
