ADB considers up to $1B loan for PH power grid upgrade

The Asian Development Bank (ADB) is considering providing up to $1 billion in financing to enhance and modernize the Philippines' national power grid.

This potential loan aims to strengthen the country's electrical superhighway and prepare it for a significant increase in offshore wind power capacity.

ADB senior director for energy, Priyantha Wijayatunga, stated that the multilateral lender is looking into the request submitted by the Philippines.

The transmission system has not been adequately strengthened in recent times to absorb renewable energy from offshore wind.

The financing, which could be substantial given the scale of infrastructure investments, may be extended in a form of sovereign or non-sovereign financing.

Finalizing the loan agreement is anticipated to take some time due to the extensive coordination required for such a large-scale financial commitment.

The government is gearing up to conduct the fifth round of green energy auction this year, focusing exclusively on fixed-bottom offshore wind technology with an installation target of 3,300 megawatts (MW).