(EnergyAsia, February 26, Thursday) — State-owned Development Bank of the Philippines (DBP) said it has signed a memorandum of understanding (MOU) with Constellation Energy Corporation, Foundation Markets and Enerasia Renewable Corporation to explore possible joint undertakings in the development of viable new and renewable energy (NRE) projects in the country.

DBP president and CEO Reynaldo G. David said that efforts to promote renewable energy will not be hampered by the unexpected movements in global oil prices.

He said that the firms from Canada and the UK have agreed to help identify potential sites for renewable projects, and their capital requirements.

Constellation Energy is engaged in the exploration, development, utilisation and commercialisation of renewable energy sources such as wave, solar, wind, biomass, hydro and geothermal.

Investment bank Foundation Markets has expertise in energy and the environment, while Enerasia Renewable Corporation is a Canadian renewable energy and investment company.

Mr David said that DBP is hoping to raise US$40 million in financing under the World Bank Rural Power Project to support more renewable energy projects in the country. The new fund could be made available by the second half of the year, and will supplement the 10 billion peso fund that DBP has been granted under the Environmental Development Program of the Japan International Cooperation Agency (JICA).

Last year, DBP approved loans to two renewable energy projects in Luzon amounting to P2.1 billion — the rehabilitation of the Ambuklao and Binga hydropower plants in Benguet and construction of a bio mass plant in San Manuel, Nueva Ecija. (US$1=50 peso).

“DBP also has several hydropower projects in the pipeline located in off-grid areas particularly in the Oriental Mindoro. These proposed projects are envisioned to reduce power rates for consumers in the countryside,” said Mr David.