The document summarizes discussions from the second workshop of the Clean Energy Finance and Investment Roadmap process in the Philippines. The workshop aimed to identify solutions to barriers limiting clean energy finance and investment in the country and prioritize recommendations. It consisted of sessions on offshore wind and energy efficiency in public buildings. Key topics of discussion included improving the investment climate, enabling offshore wind development, addressing project risks, and unlocking financing. Participants engaged in polls to prioritize actions and solutions. The workshop aimed to inform recommendations for the Clean Energy Finance and Investment Roadmap to be released in early 2023.

1. ROADMAP WORKSHOP II
1
Cecilia Tam, Team
Leader
Chetna Hareesh
Kumar, Clean Energy
Finance Analyst

2. The Roadmap process is designed to:
• bring together stakeholders through a series of
consultations and three workshops
• assess critical barriers and identify opportunities to
improve finance and investment (Workshop I)
• deliberate and prioritise recommendations for policy
and financing solutions to raise capital at scale
(Workshop II)
• validate recommendations & steps forward for
actions to unlock finance and investment over the
next 3-5 years (Workshop III)
2
CEFI Roadmap context

3. 3
CEFIM in the Philippines

4. 4
Roadmap process and timeline
June 2022
• WS 1 to set vision,
identify
opportunities and
barriers
November
2022
• WS 2 to
discuss
solutions
Q1 2023
• WS 3 to deliberate on
roadmap
recommendations
H1 2023
• Launch of the
Roadmap

5. 5
1st Roadmap Workshop
The 1st Workshop was held on 31 May – 01
June 2022 and brought together more
than 150 participants to discuss barriers
and opportunities for investment in clean
energy in the Philippines.
More information on the event can be found at https://www.oecd.org/environment/cc/cefim/philippines/

6. • The Philippines has taken important steps to promote renewable energy and energy
efficiency, but further measures are required to accelerate investments.
• Lack of awareness or/and incentives and poor access to finance were highlighted as
key issues for energy efficiency projects.
• Gaps in policy implementation, local capacity, and pipeline of bankable projects were
identified as key barriers to renewable energy projects.
• Diversifying financing sources and using public / development funds effectively to
unlock private investment will be important.
• Workshop II: Offshore wind and energy efficiency in public buildings were chosen by
DoE as the priority topic areas to delve deeper into.
6
Key takeaways from Workshop I

7. Needs Assessment: Financing trends
High
cost of
finance
Low
access to
finance
• Small RE developers and
most EE developers face
difficulties accessing
project finance.
• EE developers thus
finance projects with
100% upfront customer
payments.
• Banks have limited
awareness and technical
capacity to evaluate RE
and EE projects, thus
prefer corporate finance
to risk-based project
financing.
• Developers face high costs
of finance (6-8% interest
rates on average; short
maturity periods; limits of
principal amounts).
• Banks require developers
to raise a minimum share
of equity (30-40%) to be
eligible for project
financing,
• Small banks charge high
interest rates and usually
have an upper limit on
principal amounts.

8. Perceived risks and challenges
EE developers Banks
RE developers
• Low demand for energy
efficiency projects due to
consumers’ lack of awareness
/ willingness to invest in new
technologies.
• Lack of clear land
classification rules and local
land-use plans complicate
site selection.
• Lack of sustainable finance
priorities or guidelines
applicable to all banks
creates distorted incentives.
• Small banks are unable to
gain experience in financing
large-scale clean energy
projects as these are taken
by large banks.
• Long permitting procedures, administrative hurdles and political
seasonality cause project delays and investor uncertainty.
• Developers are often not fully ready with project proposals when
applying for loans, which leads to banks rejecting their
applications.

9. 11
Workshop II – Format & objectives
Today’s discussions will:
• aim to identify solutions to overcome barriers to clean energy finance and investment
• prioritise actions over next 3-5 years enable a pipeline of bankable projects
Solutions and priorities identified today will be inputs to the Clean Energy Finance and Investment
Roadmap → to be released in H1 2023)
Housekeeping:
• Discussions will follow Chatham House rules (followed by workshop summary for feedback)
• All participants are welcome to share their thoughts by raising hands (in person and online)
• Online participants please change name to “Organisation + Name” (e.g. OECD Cecilia Tam)

10. 12
Day 1: Offshore wind – Agenda
• Welcome address 09:00-09:05
• OECD CEFI Roadmap presentation 09:05-09:15
• Participants poll and introductions 09:15-09:20
• Roundtable 1: Investment climate for renewables 09:20-10:20
Coffee service
• Roundtable 2: Enabling environment for offshore wind 10:30-12:00
Lunch break
• Roundtable 3: Developer risks and policy support 13:30-15:00
Coffee service
• Roundtable 4: Bankability and financing models 15:10-16:30
• Wrap up discussion 16:30-16:50
• Concluding remarks 16:50-17:00

11. • Please indicate the type of organization you are representing.
Please choose among: Government, RE project developer, RE business association, EE business
association, EE project developer (including ESCO), private financial institution, public financial institution,
other (development partner, IGO, NGO, academia, etc.)
13
Participants poll

12. Objective: to discuss key actions to improve the general investment climate for renewables in the Philippines
Scene-setting presentation:
• OIC-Asst. Dir. Ruby de Guzman, Department of Energy – National Renewable Energy Program (NREP)
2020-2040 and Sector Updates
Opening discussants:
• Engr. Jayson G. Corpuz, Chief Energy Regulation Officer, Renewable Energy Division, Market Operations
Service – Key regulatory developments to support the National Renewable Energy Program
• Ms. Gian Karla Canales Gutierrez, Philippine Independent Power Producers Association – Role of the
private sector in unlocking renewable energy investments
14
Roundtable 1

13. Suggested framing questions:
• Has the Renewable Standard Portfolio been set at a sufficiently high to spur demand for renewables?
Are there plans to increase it to a higher level?
• Accelerating uptake of GEOP: what steps should be taken to facilitate registration and harmonise the
scheme with the RCOA?
• How can the government overcome coordination issues related to EVOSS implementation, which have
impeded a faster permitting process?
• DOE recently announced it is working on loosening FDI restrictions for renewables. Will foreign equity
restrictions be open to 100% for all renewable technologies?
• What are other priority areas to help achieve clean energy targets?
15
Roundtable 1

14. Objective: to discuss key actions to create the enabling environment for offshore wind development
Scene-setting presentation:
• Ms. Maria Ayuso Olmedo, Lead on Offshore Wind Engagement in the Philippines, World Bank – Offshore
wind potential in the Philippines
Opening discussants:
• H.E. Franz-Michael Skjold Mellbin, Ambassador, Royal Danish Embassy - Lessons learned from Danish
offshore wind experience, including supporting markets abroad
• Mr. Anthony Almeda, Chairman and CEO, National Grid Corporation of the Philippines – Transmission
infrastructure development plans to support renewable energy development, particularly offshore wind
• Sec. Maria Antonio Yulo Loyzaga, Department of Environment and Natural Resources – Local environmental
regulations and permitting procedures related to OSW development
16
Roundtable 2

15. Suggested framing questions:
• How can international partners support the holistic feasibility studies required to identify offshore wind
development zones in the Philippines?
• What are the transmission infrastructure upgrades required to meet offshore wind potential and what
are the corresponding investment needs?
• What are the key barriers to transmission infrastructure investments? What policy signals/financial
incentives are needed to attract investments into transmission infrastructure?
• Are there other critical infrastructure/logistics issues to OSW development?
• What are the key policy and regulatory challenges that need to be addressed to create an enabling
environment for OSW development? How can international experience sharing be useful there?
17
Roundtable 2

16. Question: What do stakeholders see as the key immediate priorities to create enabling environment for
initial offshore wind development in the Philippines?
a. Designated development zones
b. Simplified regulatory framework
c. Strong environmental and social impact assessment frameworks
d. Transmission infrastructure
e. Port infrastructure
f. Strong supply chains
g. Other: _______
18
Roundtable 2: Poll

17. Objective: to discuss project risks faced by developers and policy support mechanisms to overcome these
Scene-setting presentation:
• Mr. Theo Sunico, Director, Triconti ECC Renewables Corporation – offshore wind ambitions in the
Philippines and what it will take to build the first few GW
Opening discussants:
• Mr. Kevin Bannister, Global Director of Business Development, Simply Blue – International developers’
perspective on key actions to accelerate OSW development in the Philippines
• Mr. Andrew Ho, Head, Government & Regulatory Affairs, New Markets, Ørsted – Experience with
revenue support mechanisms across markets and managing transitions from subsidy regime
19
Roundtable 3

18. Suggested framing questions:
• What do project developers see as the critical barriers or investments risks in developing initial few GW?
• What do private sector investors look to government and multilateral agencies (ADB, IFC, etc) to
contribute to a successful “proof of concept”?
• What revenue support mechanisms have been used by other countries to support their initial OSW
deployment? What approaches can be adapted to the Philippines?
• What additional policy support is needed to mitigate other developer risks (e.g. supply chain risk,
offtake risk, etc.)?
20
Roundtable 3

19. Question: What do stakeholders see as the best fiscal support mechanism for initial OSW projects in the
Philippines?
a. Feed-in tariff
b. Feed-in premium
c. Contracts for difference
d. Tradeable certificates
e. Tax incentives
f. Other: _______
21
Roundtable 3: Poll

20. Objective: to discuss bankability concerns of financiers and de-risking instruments to overcome these
Scene-setting presentation:
• Ms. Jo Ann Eala, Vice President and Head BPI Sustainability Office, Bank of the Philippine Islands – Philippine
banking sector perspective on key actions to accelerate offshore wind finance
Opening discussants:
• Mr. Juan Martin L. Syquia, Deputy Chief Finance Officer – Raising finance for offshore through clean energy
transition financing structure (asset recycling)
• Mr. Timothy Meaney, Head of Philippines, Vietnam & Cambodia, UK Export Finance – Role of export credit
facilities in addressing risks and bankability of offshore projects
• Mr. Jonas Millqvist, Co-Head for Origination Asia, Danmarks Eksport Kredit – Role of export credit facilities in
addressing risks and bankability of offshore projects
22
Roundtable 4

21. Suggested framing questions:
• What are the key issues that affect the bankability of OSW projects? What policy support are seen to be
necessary to make the initial projects “bankable”?
• Which risk mitigation mechanisms are needed to unlock capital? What are the lessons learned from
international experience?
• To what extent are local or domestic banks capable/willing to finance offshore wind projects? What kind
of support do they require to feel comfortable doing so?
• Which innovative financing models and investment approaches can be used to diversify sources of
capital for offshore wind?
• How can blended finance be best used to de-risk initial offshore wind projects?
23
Roundtable 4

22. Question: What do stakeholders see as the most effective de-risking instrument for initial OSW deployment
in the Philippines?
a. Credit guarantee
b. First loss facility
c. Viability gap funding
d. Foreign exchange hedging
e. Other: _______
24
Roundtable 4: Poll

23. 25
Please visit our webpage:
www.oecd.org/cefim/
For more information, please contact:
Cecilia Tam
Cecilia.TAM@oecd.org
Jeremy Faroi
Jeremy.faroi@oecd.org
Chetna Hareesh Kumar
Chetna.HAREESHKUMAR@oecd.org

24. ROADMAP WORKSHOP II
26
Cecilia Tam, Team
Leader
Chetna Hareesh
Kumar, Clean Energy
Finance Analyst

25. The Roadmap process is designed to:
• bring together stakeholders through a series of
consultations and three workshops
• assess critical barriers and identify opportunities to
improve finance and investment (Workshop I)
• deliberate and prioritise recommendations for policy
and financing solutions to raise capital at scale
(Workshop II)
• validate recommendations & steps forward for
actions to unlock finance and investment over the
next 3-5 years (Workshop III)
27
CEFI Roadmap context

26. 28
Workshop II – Format & objectives
Today’s discussions will:
• aim to identify solutions to overcome barriers to clean energy finance and investment
• prioritise actions over next 3-5 years enable a pipeline of bankable projects
Solutions and priorities identified today will be inputs to the Clean Energy Finance and Investment
Roadmap → to be released in H1 2023)
Housekeeping:
• Discussions will follow Chatham House rules (followed by workshop summary for feedback)
• All participants are welcome to share their thoughts by raising hands (in person and online)
• Online participants please change name to “Organisation + Name” (e.g. OECD Cecilia Tam)

27. 29
Day 2: Energy efficiency – Agenda
• Welcome address 09:00-09:05
• OECD presentation and participants poll 09:05-09:15
• Roundtable 5: business models for EE in public buildings 09:15-11:00
Coffee service
• Roundtable 6: Financing options for energy efficiency 11:10-12:30
Lunch break
• Roundtable 7: De-risking and international support 14:00-15:20
Coffee service
• Wrap up discussion 15:30-16:00
• Concluding remarks 16:00-16:05

28. • Please indicate the type of organization you are representing.
Please choose among: Government, RE project developer, RE business association, EE business
association, EE project developer (including ESCO), private financial institution, public financial institution,
other (development partner, IGO, NGO, academia, etc.)
30
Participants poll

29. Objective: to discuss potential business and policy actions to accelerate investment in energy efficiency in public buildings
Scene-setting presentations: Challenges in the procurement and financing of EE services, and solutions to overcome those
• Engr. Rosette B. Villaflor, EEC Officer, LGU of Danao City, Cebu
• Mr. Albert B. Ras, EEC Officer, LGU of Alburquerque, Bohol
• Ms. Cecile G. Marvilla, Meralco Energy, Inc. (ESCO)
Opening discussants:
• OIC – Director Artemio P
. Habitan, Department of Energy, Overview of the ESCO market in the Philippines
• Mr. Alexander Ablaza, CEO, Climargy and Founding Convenor and Co-Chair of the Asia-Pacific ESCO Industry Alliance – Public financial
mechanisms that enhance the viability of ESCO projects
• Mr. Shri Abhishek Gupta, General Manager & Head – Internationals, EESL, India – Introduction to India’s public super ESCO model – Energy
Efficiency Services Limited (EESL)
• Mr. Pedro L. Lite Jr., Executive Vice President, Philippine National Oil Company – Renewables Corporation – Presentation of public ESCO
activities
• Mr. Jake Tual, Executive Director, TriSky – Sharing Perspective Working with LGUs/Public Buildings 31
Roundtable 5

30. Suggested framing questions:
• What regulatory changes are needed to increase LGUs’ uptake of energy efficiency?
• Can the public ESCO model help overcome barriers to energy efficiency adoption in the Philippines
(especially around procurement rules)?
• Are current training programmes sufficient to build capacity and raise awareness of LGUs on energy
efficiency? What are areas where further support is needed?
• Do existing ESCOs have sufficient capabilities to harness public sector’s energy saving potential?
• Are any additional elements (e.g., policy signals or procedures) needed?
32
Roundtable 5

31. Question: What do you see as the greatest challenge to scaling up EE investment in public buildings and
lighting?
a. Limited LGU’s capacity
b. Local budget constraints
c. Procurement rules
d. Access to financial market
e. Other: _______
33
Roundtable 5

32. Objective: to discuss financing options for LGUs’ energy efficiency projects
Opening discussants:
• Asec. Neil Adrian S. Cabiles, Department of Finance (DOF) – Overview of climate finance mechanisms
to support EE and challenges to include bonds
• Mr. Marc M. Martinez, DOE – EUMB – Overview of the Government Energy Management Plan (GEMP)
System
• Mr. Deano Christian Echague, Department of Budget and Management Region 5 – Challenges in the
procurement and financing of EE Services and solutions to overcome those
• Mr. Arnold Onrubia, EEC Officer, Provincial Government of Albay– Experience financing EE and what
actions should be reflected in the roadmap.
34
Roundtable 6

33. Suggested framing questions:
• How can government fund be leveraged to accelerate energy efficiency in the public sector?
• How can the PPP model for energy efficiency be harnessed in the Philippines?
• What steps are needed to increase LGUs access to capital markets?
• Can crowdfunding platforms and fintech support LGU financing?
• Are any additional elements (e.g., capacity building, policy signals or procedures) needed?
35
Roundtable 6

34. Question: Which of the following financing options has the greatest potential to support LGU funding of EE
investment in public buildings and lighting?
a. Central government budget (allocated to LGU)
b. Municipal (green) bond
c. On-bill financing
d. PPP model
e. Other: _______
36
Roundtable 6

35. Objective: to identify needs for additional international and public support and potential solutions
Opening discussants:
• Gov. Dakila Carlo E. Cua, Interim President, Union of Local Authorities of the Philippines (ULAP) –
Identify areas where international support is particularly needed (capacity building, financing)
• Ms. Maria Fritze, Country Program Coordinator, Energy Transition Partnership – Towards a roadmap for
energy efficiency financing in the Philippines
• Reno Joseph N. Cantre, Director, Project Development and Monitoring Facility (PDMF) Service, PPP
Centre, Identifying areas to support the use of PPP for energy efficiency
37
Roundtable 7

36. Suggested framing questions:
• Which risk mitigation mechanisms (financial support, guarantees/risk-sharing facilities) are needed to
unlock capital?
• Could the establishment of an energy efficiency revolving fund help overcome some of the identified
barriers?
• Should public institutions (e.g. Philguarantee, DBP) play a greater role in supporting EE in the public
sector?
• Could the energy saving insurance model be adapted to the Philippines?
• Are any additional elements (e.g., policy signals or procedures) needed?
38
Roundtable 7

37. Question: What are key priority areas for international/public assistance to support EE investment in public
buildings and lighting?
a. Credit guarantee
b. Energy Saving Insurance
c. Concessional lending to LGUs
d. LGU energy officer capacity building
e. Investment Grade Audit training & certification for ESCOs
f. Other: _______
39
Roundtable 7

38. 40
Please visit our webpage:
www.oecd.org/cefim/
For more information, please contact:
Cecilia Tam
Cecilia.TAM@oecd.org
Jeremy Faroi
Jeremy.faroi@oecd.org
Chetna Hareesh Kumar
Chetna.HAREESHKUMAR@oecd.org