The Department of Energy (DOE) on Wednesday vowed to support more than P1 trillion worth of power projects approved by the Board of Investments to ensure its completion and contribution to energy security.
The BOI announced a record-breaking P1.35 trillion worth of investments approved from January to September, surpassing last year’s total of P1.26 trillion.
Data show that of the total, P1.29 trillion or 95 percent of the total investments involve renewable energy.
“The DOE is committed to working with the private sector and our partner agencies in the national government and local government units to ensure that these approved investments will ripen into beneficial and tangible energy infrastructure for our people,” Energy Secretary Raphael Lotilla said in a statement.
He noted the energy sector’s pivotal role in driving the BOI’s investments growth.
Lotilla said the surge in energy investments underscores the government’s sound policies initiated by President Ferdinand Marcos Jr. that created a favorable business environment for investments such as the lifting of foreign ownership restrictions of most renewable energy projects, alongside measures and mechanisms to accelerate their development.
A key DOE initiative is the Green Energy Auction Program (GEAP), which promotes transparent and competitive pricing for renewable energy and enhances project bankability through a 20-year offtake guarantee.
The government also simplified the application process for renewable energy development and duty-free importation incentives.
The DOE also created new opportunities for new investments within existing contract areas, allowing them to apply for additional renewable energy contracts.
This could lead to extended contract terms and incentives for capacity-increasing investments.
Investments registered with the BOI enjoy a wide range of incentives including income tax holidays, a preferential tax rate on gross income, zero value-added taxes (VAT) rating and tax- and duty-free importation of capital equipment, raw materials and supplies.
The DOE said interest in the renewable energy sector had grown since the implementation of the Renewable Energy Act of 2008.
It said that as of March 2024, it awarded 1,327 renewable energy service contracts, with 5.8 gigawatts already installed and a further potential capacity of about 137.8 gigawatts.
The majority of the renewable energy potential capacities are solar, hydro and wind, accounting for almost 90 percent.
The DOE said that to further accelerate renewable energy projects, the third round of GEAP is scheduled for this year, covering capacities for impounding and pumped storage hydropower as well as geothermal technologies. The fourth round will focus on Integrated Renewable Energy and Energy Storage Systems (IRESS) and natural gas technologies.
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