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Thursday, August 21, 2025

PH eyes $300-m ADB loan to fund solar rooftops

The Philippine government is finalizing a $300-million loan package from the Asian Development Bank (ADB) to roll out solar rooftop and energy efficiency projects.

“We are grateful for the continued support of the ADB in our Government Energy Management Program. We are nearing finalization of a new package to support rooftop solar installations and expanding the use of energy-efficient appliances in public schools and government hospitals— two areas where clean energy can make a profound impact,” Department of Energy Undersecretary Rowena Guevara said at the sidelines of the sidelines of the Asia Clean Energy Forum 2025.

Guevara said the loan, once fully approved this year, is expected to be included in the General Appropriations Act for fiscal year 2026.

DOE director Patrick Aquino said the loan specifics were still up for finalization.

“These would include processes under DepDev [Department of Economy, Planning and Development] and DOF [Department of Finance]. If it were to proceed, the capacities will contribute to the targets under the National RE Program and compliance with the Government Energy Management Program. It will be a 5-year program, loan amount of up to $300 million, and DOE will be implementing agency,” he said.

The GEMP aims to reduce the whole government’s electricity and fuel consumption by at least 10 percent through energy efficiency and conservation strategies.

President Ferdinand Marcos Jr. signed Administrative Order (AO) No. 15 in January 2024, which directs the accelerated implementation of the GEMP.

AO 15 highlights the implementation of Republic Act No. 11285 or the Energy Efficiency and Conservation (EEC) Act in all government entities under the executive branch, including government-owned and controlled corporations (GOCCs), government financial institutions (GFIs), their subsidiaries and state universities and colleges (SUCs).

The GEMP implementation is guided by the Inter-Agency Energy Efficiency and Conservation Committee (IAEECC) created under the EEC Act.

IAEECC is tasked to prepare an annual assessment of opportunities for energy cost reduction in all government instrumentalities and mandating the adoption of energy-efficient measures and technologies.

The government reached electricity savings of more than P300 million or an equivalent of over 30 million kilowatts and more than P25 million in fuel savings or an equivalent of 386,083.59 liters of fuel in 2023, with the institutionalization of GEMP.

These savings are the result of 1,210 audited government offices out of the estimated 8,000 total entities identified.

The DOE said the accelerated implementation of GEMP under AO 15 is estimated to result in up to nearly P2 billion in savings for both electricity and fuel, based on the average savings from 2023.

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