EU defers P470-M grant to boost renewables

The European Union (EU) has postponed its roughly P470million grant project in the Philippines pending the government’s approval of the extension of the financial agreement under the Access to Sustainable Energy Program (ASEP).

The EU has been seeking proposals for projects that increase access to renewable energy services in the Philippines with financial assistance from the ASEP, a joint undertaking with the Department of Energy (DOE).

It has set an overall indicative amount of €7.2 million — about P467 million — for projects and a Feb. 19 deadline for submission of proposals from interested developers.

The project aims to “promote renewable energy strategies and systems that promote energy efficiency, innovations and support to livelihoods for poor off-grid and un-electrified households in rural communities of the Philippines with positive impact on climate change adaptation and mitigation.”

However, this was postponed until further notice since the Philippines has yet to renew its deal to extend the program.

In May last year, the Philippine government decided to end its funding agreement with the EU ostensibly to prevent the union from interfering in internal policies.

In October, Malacañang said the Philippines would accept foreign assistance depending on the conditions attached to the aid despite President Duterte’s verbal rejection of new grants from the EU.

The European Commission and some European human rights activists have critized Duterte’s anti-drug campaign, which has taken the lives of more than 3,900 suspected drug personalities. Human rights groups and government critics have also blamed thousands of other deaths on the drug war. The government blames these deaths on assassins and vigilantes.

The DOE is working with EUASEP to draft a national strategy for energy efficiency in the power sector.

This is aimed at strengthening “the Government Energy Management Program through building energy performance standards and benchmarking, including reviewing the Energy Efficiency Bill for finalization,” Fuentebella said.

ASEP will be implemented through three components: Component 1, the “Technical Assistance and Capacity Building Pillar (ASEP-TA)”, Component 2, the “Investment Support” managed by the World Bank, and Component 3, the “Call for Proposals for Pro-Poor and Climate Resilient Innovative Energy Solutions” directly managed by the EU delegation.