US offers to fundmajor PH energy, infra projects
The United States is looking to tap its development finance arm to fund renewable energy and infrastructure projects in the Philippines to boost power supply, cut electricity rates and attract more investors.
Speaking to reporters on Thursday, Jose Fernandez, US undersecretary of state for economic growth, energy and the environment, said the Development Finance Corp. (DFC) could provide “a source of financing,” especially as the Philippines is working toward building more renewable energy facilities.
The US official recently concluded his state visit to the Philippines, where he met with Department of Energy (DOE) officials, the American Chamber of Commerce of the Philippines and various mining companies to discuss how Manila and Washington could further advance trade investment.
DFC is the US government’s development finance institution that invests in various sectors, including energy and critical infrastructure, across emerging economies.
Fernandez explained that better infrastructure in the Philippine renewable energy sector could help lower electricity rates, thus attracting more investors in different industries.
“On the one hand, you have semiconductor, mining and other industries that are looking for cheaper energy,” he said. “On the other hand, you have the Philippines that is tailor-made for renewable energy … you can turn a vulnerability into a competitive advantage, and in doing so, attract the [industries] of the future that are already saying that they want to come to the Philippines.”
International think tank Global Energy Monitor recently found that the Philippines had the greatest potential for solar and wind power development in Southeast Asia, with 99 gigawatts of prospective capacity.
However, it also has among the most expensive electricity rates in the region, owing to the fact that the power sector is not subsidized, unlike in neighboring countries.
Fernandez said his discussion with DOE officials focused mainly on tapping the country’s vast renewable energy resources, particularly solar and wind.
“You’ve got all the sun you could ever want, more wind than you probably ever wanted … this is an opportunity to attract investment [and] promote the clean energy future that we all need to achieve,” he said.
Fernandez did not disclose the potential investment that would be involved, reiterating only that DFC “has a keen interest in infrastructure.”
