Thinking small a way forward for power -- IFC

Business World Online
Posted on July 20, 2015 10:39:00 PM
By Claire-Ann M. C. Feliciano, Senior Reporter

THE INTERNATIONAL Finance Corp. (IFC) said it is projecting the potential demand for small-scale power generation projects in the Philippines this year to be worth over $200 million.

Noel N. Verdote, the IFC’s operations officer for Sustainability and Climate Business, made the projection in his presentation during the Energy Smart Philippines 2015 conference in Pasay City.

Distributed energy involves power generation close to the point of consumption and uses a variety of small-scale power generating technologies integrated into an existing distribution network.

Mr. Verdote said distributed energy is seen “as a potential solution to diversify energy sources, increase competitiveness, increase energy security and move towards a low emission economy.”

He said that a study conducted by IFC showed that commercial and residential applications have a potential market of 42 megawatts (MW) of solar projects worth $83.3 million.

Of the total, shopping malls account for 28 MW valued at $55.9 million; hospitals at 7.2 MW worth some $14.4 million; and residential at 6.2 MW equivalent to some $12.4 million.

High-rise buildings have a combined potential of about 290 kilowatts or $576,000, according to Mr. Verdote’s presentation.

The agricultural sector, he said, has a potential market of 63 MW in biomass projects worth a combined $114 million.

Of these, commercial swine growing operations have the potential to provide fuel for projects of up to 13 MW while feedstock from sugar mills can power plants generating 50 MW.

Mr. Verdote noted that isolated grids -- or those located in off-grid areas -- have a 3.22-MW potential for solar and diesel facilities, which could cost some $11.32 million.

To realize the potential of distributed energy, he said IFC can raise awareness of its potential among developers and engage smaller banks as partner financial institutions.

IFC, a member of the World Bank Group, has backed 162 sustainable energy projects with financing worth about $612 million as of end-2014.

Of the total value, 55% went to renewable energy; 36% to energy efficiency upgrades; and 9% to special climate projects.

For this year, IFC targets some 80 transactions with a loan volume of up to $120 million. source