Press Release: Convergence Awards Allotrope Partners Feasibility Grant Through Indo-Pacific Design Funding Window
With funding from the Australian Government, Convergence is pleased to announce it has awarded a feasibility study grant to Allotrope Partners (Allotrope) through the Indo-Pacific Design Funding Window, supporting the development of an innovative blended finance vehicle targeting Sustainable Development Goal 7–Affordable and Clean Energy in the Philippines.
The Philippines faces a complex energy challenge; as the demand for energy continues to climb, supply tightens and energy prices rise. The cost of transmitting power and transporting fuel to the 7,000+ islands of the Philippine archipelago has led to the Philippines having the highest electricity rates in Asia. Investing in renewable energy is imperative for the country’s progress towards energy and economic sustainability. Fortunately, the Philippines has many potential renewable energy resources including solar, wind, ocean and geothermal to help realize Goal 7.
Convergence’s feasibility study grant will enable Allotrope, an international clean energy advisory firm specializing in emerging markets and technologies, to explore the feasibility of a bankable structure for the Local Utility Project Aggregator (LUPA), a proposed US$150M blended finance vehicle that will bring together Electric Cooperatives in the Philippines to invest in and own renewable energy projects. Through this vehicle, Allotrope aims to reduce the Philippines’ dependence on unsustainable and expensive energy sources such as coal and diesel, advancing the government’s goals to transition 35% of its energy mix to renewable energy.
“LUPA is a strong fit for the Indo-Pacific Design Funding Window as it aims to develop a fit-for-purpose financial structure to empower local Electric Cooperatives to meet renewable energy targets and catalyze local market financing, paving the way for a greener future and lower energy prices for the Philippines, ” says Robert van Zwieten, Managing Director for the Asia-Pacific region at Convergence.
Allotrope has strong relationships with investors, developers, and government decision-makers in the region, with a proven track record of leading public-private collaboration initiatives in the Indo-Pacific region to spur renewable energy investment and deployment at scale. Allotrope will draw upon this experience to engage with a range of local stakeholders and conduct a gender analysis to ensure effective and equitable implementation throughout the LUPA design process.
“Our team is eager to partner with Convergence on this exciting effort to expand renewable energy opportunities for Electric Cooperatives and the communities they serve. This feasibility grant will play a critical role in ensuring that LUPA can forge pathways for thousands of megawatts of community-focused renewable energy deployment across the Philippines,” says Marc Stuart, CEO of Allotrope Partners.
About Convergence’s Design Funding Program
Convergence’s Design Funding Program operates as a market acceleration tool providing early-stage capital to support blended finance solutions in emerging markets to accelerate the number of investible transactions in market targeting the Sustainable Development Goals. The Indo-Pacific Design Funding Window provides grant funding for the design and launch of catalytic blended finance solutions focused on sustainable & resilient infrastructure and gender equality in certain countries in the Indo-Pacific region. This Design Funding Window is funded by the Australian Government.
Convergence accepts Design Funding applications on a continuous basis. To be considered for the next review cycle for the Indo-Pacific Design Funding Window, practitioners are invited to submit their applications by August 10, 2020. Find out more here.
Photo courtesy of Karsten Würth.