21 July 2026 – Manila, Philippines – Climate Smart Ventures (CSV) today announced the release of a new policy paper titled “De-risking Renewable Energy Development in the Philippines through Third-Party Buildout of Grid Connection Facilities,” positioning third-party buildout development as an essential mechanism to overcome grid bottlenecks, unlock renewable energy (RE) deployment, and accelerate the country’s clean energy transition.

Despite strong policy support, including increased Renewable Portfolio Standards targets, long-term contracts under the Green Energy Auction Program, 100% foreign ownership, the Energy Virtual One-Stop Shop System permitting, and the recent Department of Energy and Energy Regulatory Commission initiatives to institutionalize the National Transmission Corporation (TransCo) and Independent Power Producers (IPPs) as alternatives to the National Grid Corporation of the Philippines (NGCP) grid building, the 50% renewable power mix target by 2040 faces delays due to grid constraints and slow transmission buildout.

Under updated regulations mandated by the Electric Power Industry Reform Act (EPIRA), TransCo can build select grid projects. RE developers are also allowed to self-build expensive, dedicated point-to-point connection facilities to ensure project delivery. While this framework can expedite grid connection, it imposes significant financial and operational burdens on IPPs and RE developers in particular, diverting critical capital away from power generation and ultimately increasing electricity costs for consumers.

To overcome these bottlenecks and accelerate RE deployment, the paper calls for revisiting existing regulations and further expanding the framework to allow dedicated third-party entities, beyond TransCo and IPPs that own power plants directly connected to transmission facilities, to construct and operate these connection facilities. This shift would alleviate the financial burden on RE developers, freeing up capital so they can focus on expanding clean energy capacity and freeing up their capital.

This model is built on proven precedents, including Chile’s transmission network and the successful restructuring of the Philippine telecommunications sector through the Common Tower Policy (CTP). The CTP effectively unburdened telecom companies of infrastructure development by shifting the risk to specialized Independent Tower Companies, unlocking significant capital through business models like sale-and-leaseback transactions. Applying a similar commercial structure to RE connection assets could unlock financing options for critical infrastructure, expedite grid integration, and ensure the public benefits from rapidly decreasing RE prices.

The paper also simulates an archetype 60 MWp / 50 MWac ground-mounted solar photovoltaic (PV) plant, demonstrating how the commercial viability of an RE project is heavily influenced by the ownership model of its connection asset. 

Participation by third-party non-IPP entities offers a powerful path forward by leveraging economies of scale and accessing capital markets more efficiently, thereby lowering the Levelized Cost of Electricity (LCOE) for the entire power system. Ultimately, developing enabling regulations for third-party buildouts is an essential, timely measure that will unlock private financing, hasten grid integration, and ensure the Filipino public benefits from a rapid, cost-effective transition to a clean energy future.

For any inquiries, please contact alvin@climatesmartventures.com.