ADB ready to extend $1 billion to boost Philippines power network

SINGAPORE – Multilateral lender Asian Development Bank (ADB) is looking to extend up to $1 billion in financing to fortify and modernize the Philippines’ electrical superhighway, according to an official.

“We are looking at strengthening your national grid,” ADB senior director for energy Priyantha Wijayatunga said in a chance interview yesterday on the sidelines of the 2025 Asia Clean Energy Summit here.

“There is a request to ADB to support, and we (still) have to work it out because it’s not the government’s grid at the moment,” he said.

A privately owned corporation, the National Grid Corp. of the Philippines holds a 25-year concession contract and a 50-year franchise to operate the country’s power transmission network.

According to the ADB official, the loan, which could total “up to about a billion dollars,” is designed to help the Philippines accommodate the projected influx of offshore wind capacity.

Asked about the timeline, Wijayatunga said finalizing the loan could “take a while,” highlighting the careful coordination required for a financing of this scale.

“It’s a lot of money, not small money, because you need a lot of money when it comes to these large investments,” Wijayatunga said, noting that the financing could be channeled through the Department of Energy.

The DOE plans to conduct this year the Philippines’ first-ever offshore wind auction, targeting around 3,300 megawatts of capacity.

For this round, the government is focusing exclusively on fixed-bottom offshore wind technology, which will be anchored to the seabed, unlike floating offshore wind projects that are mounted on floating platforms.

With this auction, the DOE aims to deliver the first kilowatt-hours of offshore wind capacity before the end of President Marcos’ term in 2028.

“It’s necessary (ADB loan) because the Philippines is quite interested in developing offshore wind. And so if you want to bring offshore wind into the grid, you need grid investments,” Wijayatunga said.

According to energy think tank Ember, the Philippines would need around $1.79 billion to upgrade and modernize its power grid system.

With this investment, modern grids could stabilize supply and enable the seamless integration of renewable energy sources.

“Smart grid deployment will be vital in shaping a cleaner and more resilient energy future, delivering reliable, flexible and secure electricity to both growing industries and Filipino households,” said Alnie Demoral, Asia energy analyst at Ember.

Under the Philippine Energy Plan, the government aims to scale up the share of renewables in the energy mix to 35 percent by 2030 and 50 percent by 2040 from the current 22 percent.