The Development Bank of the Philippines (DBP) has launched the Solar Merchant Power Plant (SMPP) Financing Program, a new loan programme for utility-scale solar power producers aimed at boosting investments in the country’s renewable energy (RE) sector. The SMPP Financing Program will provide funding to solar power producers that sell renewable energy on the Wholesale Electricity Spot Market, with a longer tenor of up to 12 years and a one-year principal payment grace period.

DBP will offer financing to eligible solar power producers through the SMPP programme for capital expenditures such as the building or extension of infrastructural facilities, as well as the procurement of machinery and equipment, among other things. For projects in Luzon, qualified borrowers are eligible to a maximum loanable amount of up to 60 per cent of the total project cost, and up to 50 per cent for projects located in the Visayas.

The new initiative is expected to support the Government of the Philippines’ target of boosting the country’s solar photovoltaic (PV) capacity from 2.16 GW in 2020 to 15.29 GW in 2030.