BPI-IFC sustainable energy loans up 33%

MANILA, Philippines - Total loans and leases under the Sustainable Energy Finance (SEF) program of the World Bank’s International Finance Corp. (IFC) grew 33 percent in 2013, the Bank of the Philippine Islands (BPI) said.

In a report, BPI said SEF Philippines initiated by the IFC in 2008 with BPI as lead partner bank, registered total outstanding loans of P9.77 billion, higher than the P7.35 billion in 2012.

The bank said the projects under the SEF resulted in a 28.7 percent growth in total energy saved to 115,613 megawatts in 2013 from 89,821 MW in 2012.

Clean energy produced jumped substantially to 1.1 million MW from 630,742 MW, while green house gas emissions avoided in 2013 reached 808,793 tons from 645,774 tons in 2012.

BPI launched this pioneering venture with the IFC to boost private sector investments in energy efficiency, capturing the bulk of the IFC’s SEF program’s total loan portfolio in the country.

Most of the projects financed in 2013 were energy efficiency projects such as the construction of energy-efficient office buildings, warehouses and factories, retrofits of existing buildings; and upgrading of equipment and refrigeration systems.

Renewable energy projects, financed last year under the SEF, include biomass drying facilities and recovery systems and installation of solar PV systems.

Other projects under the SEF included: a 571-kilowatt peak solar rooftop project at the Asian Development Bank which is expect to reduce ADB’s total annual energy consumption by eight percent; retrofitting of an international school’s facilities as well as replacing its old HVAC (heating, ventilation and air conditioning) and lighting systems; and acquisition of a biomass recovery system for the additional steam supply of a bottling company.

BPI also implemented several energy saving process improvements in its Central Security Office, which will extend the useful life of equipment by about 20 percent and result in a direct annual savings of P15.5 million.

The Ayala-led lender will also install solar PV system in half of its branches.

It will also change its standard horizontal and vertical signage by using LED lights instead of fluorescent lamps. Although LED lamps cost more than fluorescents, they use half as much electricity, last six times longer, and provide annual operating cost savings of 50 percent over fluorescent lights.