Grant to benefit major energy projects

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Energy efficiency project developer Climargy Inc. and the United Nations Office for Project Services (UNOPS) are collaborating on a grant support agreement for the Southeast Asia Energy Transition Partnership (ETP) Energy Efficiency Innovation Window.

Climargy said proceeds of the three-year grant program will be used to subsidize the upfront costs of investment-grade energy audits (IGA) to prepare energy efficiency investments in the commercial and industrial sectors of the country.

The company said the ETP grant program is expected to support the IGAs of a portfolio of 11 to 15 energy efficiency projects, initially estimated to require P1 billion in project capital expenditures.

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Under the agreement, Climargy will be co-financing with its corporate resources to identify project opportunities, engage multiple energy service company (ESCO) partners and industrial or commercial end-use customers.

Climargy will implement the IGAs with results to be presented to host entities and equity partners for investment decisions.

“We are thrilled with this co-financing partnership for IGA support to enable energy efficiency investments in the Philippines. By de-risking IGA studies, we remove an upfront barrier to the preparation of investment-ready energy efficiency projects,” said Alexander Ablaza, Climargy chief executive officer.

The company added should the energy efficiency projects supported by ETP-funded IGAs succeed in attracting equity capital and eventually be completed, the achieved energy savings could lead to 457 million tons of carbon dioxide equivalent in greenhouse gas emission reduction through 2040 and around P6.7 billion in total energy savings.

Ablaza said IGAs help determine reliable estimates of energy savings, capital expenditure and other opportunities or risks before any energy efficiency project qualifies for any form of financing.

 

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