U.S. Helps investors eye clean energy opportunities in the Philippines

June 15, 2009

MANILA – Opportunities to finance clean energy projects drew more than 100 industry experts and investors to the Philippines Clean Energy Investor Forum today.  The forum showcased projects that evolved from a competition, sponsored by the U.S. Agency for International Development (USAID) and the Private Finance Advisory Network (PFAN).  PFAN, a multilateral public-private partnership, is managed by USAID in Asia and was initiated by the International Energy Agency’s Climate Technology Initiative.

The Philippine Government has made clean energy a priority in its energy plans.  The Department of Energy estimates that an investment of US$2.9 billion is needed for renewable energy, and US$1.0 billion for energy efficiency over the next five years in the Philippines in order to meet its aggressive national clean energy targets.

The PFAN Philippines Clean Energy Investor Forum served as a platform for Philippine energy entrepreneurs to showcase their ideas to investors.  Six finalists were chosen by PFAN in the Philippines Business Plan competition.  Each of the companies received mentoring and one-on-one coaching prior to formally making their investment pitch at the forum.

The total value of investment of the six finalist projects is more than US$500 million, comprising both debt and equity financing.  In addition to offering promising investments, these projects have the potential to reduce greenhouse gas emissions by more than 1.5 million metric tons of CO2 per year, according to USAID.  Based on today’s presentations, a panel of judges will select two Clean Energy Financing Award winners for the Philippines.

“By bringing together clean energy entrepreneurs and investors, the PFAN Philippines Clean Energy Investor Forum is addressing the barriers that clean energy businesses face in seeking financing,” said Jon Lindborg, Mission Director for USAID Philippines. “These barriers make it difficult for investors to identify and screen viable clean energy projects.”  USAID believes that by identifying and nurturing the best ideas, it can help facilitate financing for the projects.

According to Orestes Anastasia, USAID’s Regional Environment Advisor, USAID is also working to expand regional clean energy finance initiatives.  “We are working to develop a network of businesses and investors interested in promoting sustainable clean energy technologies and businesses,” he said.  “These focus on renewable technologies – such as wind, solar, and biomass, as well as energy efficiency – that are good for business and the environment.”