Activities - Training - EAEF: Increasing Access to Local Sources of Financing - IRG Philippines
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Training
One of the factors hampering the development of renewable energy technologies is the reluctance of local financial institutions in lending to such kinds of projects and initiatives. This reluctance stems from the lack of capacity in lending to such projects, inadequate understanding of the technologies and its economics, and high-risk perception associated with renewable energy investments. To address this lack of understanding of Renewable Energy, a training program on Renewable Energy technologies, economics, markets and energy policies and financing was developed and conducted for core group members of three local Financial Institutions, namely: Land Bank of the Philippines, Equitable PCI Bank and First Metro Investment Corporation.
The training program was not designed to make RE experts out of the bankers. The main objective was to give them a better understanding and appreciation of the different RE technologies to encourage them to accommodate RE project loans and properly evaluate them. Hence, the discussions on the technical aspects were limited only to that which will enable the bankers to understand the basic characteristics and features of RE technologies and allow them to make initial assessments of the proposals put forward to them. There were also discussions on the typical financing mixes used to finance the development of the different RE systems. The bankers appreciated the fact that aside from good resource supply and sound government policies, access to financing is one of the key factors that could contribute to the wide-scale development of RE in the country. They realized that the various RE systems are in different levels of commercialization, and have inherent characteristics that must be considered in evaluating loan proposals.
The training program for the three local financial institutions was composed of eight (8) modules:
- Module 1 : Philippine Energy Scenario and Introduction Renewable Energy Systems
- Module 2 : Hydropower
- Module 3 : Geothermal Energy
- Module 4 : Solar Energy
- Module 5 : Wind Energy
- Module 6 : Biomass and other emerging RE technologies
- Module 7 : Clean Development Mechanism (CDM)
- Module 8 : Renewable Energy Policy and Finance
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Disclaimer: This document has been produced with the financial assistance of the European Community. The views expressed herein are those of the project team, and can therefore in no way be taken to reflect the official opinion of the European Commission.