Decarbonisation of Electricity Generation on Philippine Islands (using Tidal Stream & Solar PV) Project Dates: January 2022 - January 2023
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PROJECT OBJECTIVE

Approach to Transformational Change: The project “Philippines – Decarbonisation of Electricity Generation on Philippine Islands – Using Tidal Stream and Solar PV”, will provide both funding (via the financial cooperation (FC) component) and advisory support (via the technical cooperation (TC) component). The FC component will offer long-term concessional loans, rendering the TSE hybrid system investment project viable. The TC component will support the local government in adjusting regulations applicable for TSE, and in the standardisation of processes while supporting the review of existing power supply agreements. The expected impact of this project is that small island grid operators will be able to substitute fossil fuel-based electricity generation through TSE hybrid systems via replicable sustainable private investment projects. These projects will install 50 MW of TSE hybrid systems, and around 100 MWh battery storage in off-grid islands in the Philippines during the lifespan of the project. Additionally, the project expects to catalyse the market for privately financed TSE hybrid investment projects by making financing sources accessible, supporting the establishment of favourable regulatory conditions. Through the long-term concessional loans to be provided by the project, over EUR 160 million are expected to be leveraged from the public and private sectors.

PROJECT DESCRIPTION

This NAMA Support Project (NSP) will help improve the economic and legal conditions for investment in Tidal Stream Energy (TSE) in the Philippines, encouraging the private sector to install TSE hybrid systems as energy supply solution in off-grid islands. The financial component will blend external long-term concessional loans provided with a grant from the NSP to lower the interest rate of those loans making the investment project viable. The NSP will also develop and test different replicable business models for TSE-PV hybrid systems. The technical component will support the local government in adjusting regulations applicable for TSE and in the standardisation of processes in addition to support the review of existing power supply agreements. Approximately 108,000 tonnes of CO2e will be mitigated over the five-years period of the NSP implementation.


SECTORS OR AREAS OF WORK
  1. Energy transition

KEYWORDS
  1. Tidal Power

Region/Location

BUDGET

USD 1,000,000

DONORS (OR FUNDING /CONTRIBUTING ORGANIZATIONS)
  1. BMU-IKI - Internationale Klimaschutzinitiative
IMPLEMENTING AGENCY OR AGENCIES

SUPPORT TYPE
BUDGET

USD 1,000,000

DONORS (OR FUNDING /CONTRIBUTING ORGANIZATIONS)
  1. BMU-IKI - Internationale Klimaschutzinitiative
IMPLEMENTING AGENCY OR AGENCIES

SUPPORT TYPE