Description: 

An expansion to the Renewable Energy Accelerator Program to address damages caused by typhoon Haiyan, and enable a 150 MW total pipeline of solar PV and biomass projects.

Background:

In the aftermath of typhoon Haiyan in 2013, which damaged a 650 MW geothermal plant supplying more than 10% of the country’s electricity needs, the need for additional power capacity in the Philippines has become critical. The 2012 Renewable Energy Accelerator Program (REAP) was approved for expansion in 2014 with a $6.1 million CTF allocation, to enable the IFC’s “bundled” pipeline of solar PV and biomass projects with a capacity of 150 MW. REAP seeks to provide a transformational role in the Philippine energy sector, supporting early private investments in the first MW scaled projects in the underdeveloped sectors of wind, biomass, and solar energy.

The expansion of REAP will help establish a track record of renewable energy projects and will seek to build confidence in the market for other projects to follow. Once operational, innovative REAP projects under the pipeline will create significant development impacts in the country by demonstrating sector viability and attracting new investors and financiers to wind, biomass, and solar energy.

Objectives and Outputs:

The original and expanded REAP are comprised of: capacity building, development support, market awareness, and advisory on off-grid renewable energy development for biomass, solar, and wind projects. Direct beneficiaries of the project will continue to include the islands of Visayas and Mindanao, which takes up roughly 25% of the power consumption in the country, but regularly experiences power shortages. Western Visayas, which has the largest biomass potential of 128MW, will also benefit from REAP, alongside the island of Luzon, which has high wind potential.

The projects under the IFC pipeline will be among the first utility-scale solar PV projects in the Philippines and the first biomass projects in the world to use sugarcane trash as primary fuel. Specifically, the biomass sites are ideal for solar PV projects, and are likely to help gain greater community support through quickly constructed solar PV projects, gaining confidence of the local communities, while the biomass projects provide base-load and supplemental income for local farmers, with a longer implementation period. Success of the projects is expected to help catalyze future RE investments in the Philippines for solar PV and on a global basis for cane trash-based biomass projects. The program is expected to reduce CO2 emissions by 230,000 tons per annum, and 3,450,000 tons over the loan lifetime.

This project summary is drawn from draft project proposals [such as the PAD, PID, SAR, and country investment plan] and may not contain the most up-to-date information.

Project Details
Cover Note | Project Document | Amendment | Proposed Decision
Approved on September 24, 2014 (Approved Decision)
Approved amount(s):
USD 6.1 million