Renewable energy projects 

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MOST of the projects endorsed by the One-Stop Action Center-Strategic Investments (OSAC-SI) of the Board of Investments are in the renewable energy sector, underscoring the Marcos administration’s push for more renewable energy (RE) projects as the country prepares for both agricultural and industrial growth in the coming years.

Both the BOI and the Department of Energy (DOE) are in step with the national government’s objective of expanding the share of renewables in the power generation mix to 35 percent by 2030 and 50 percent by 2040.

BOI Director Ernesto delos Reyes recently told reporters that this pipeline of RE investments will further boost the current P4.3 trillion worth of projects endorsed by OSAC-SI for green lanes in national and local government agencies. The OSAC-SI, a creation of Executive Order 18, issues the certificate of endorsement to strategic investments to expedite the processing of licenses and permits to avoid delays in their projects. This action center serves as a single point of entry or a “green lane” for big-ticket projects.

‘Holders of these service contracts should endeavor hard to comply with their timelines … The country cannot afford delays in RE projects any longer.’

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While the establishment of green lanes has solved some of their problems, there are other snags that face investors — problems that cannot be remedied by just providing mechanisms for ease of doing business.

In the case of renewable energy projects, many firms awarded with service contracts by the DOE have been unable to comply with their project timelines, prompting the department to consider terminating these contracts.

As of latest count, the DOE said, there are at least 105 projects which have been struggling with timeline compliance. Among the reasons cited for project delays is the failure to secure possessory rights or system impact studies, which indicates the inability to connect to the power grid.

Of the total, the DOE said, 88 projects are either stalled in their pre-development phases or not advancing at all. These include 53 solar, 17 hydropower, 10 wind, five geothermal, and three biomass projects.

Energy Undersecretary Rowena Cristina Guevara said the Marcos administration is committed to ensuring the efficient and timely execution of RE projects by regularly assessing the progress of these projects and refining the regulatory framework.  She added that if any service contracts are found to be non-performing, the DOE would make these available to new developers who can effectively advance the projects to completion.

It is interesting to note that aside from the BOI’s One-Stop Action Center, the Department of Energy has its own Energy Virtual One-Stop Shop (EVOSS) to streamline the permitting process in energy projects. Earlier, the DOE issued revised omnibus guidelines to simplify the application process for RE development and fast-track the project implementation.

These streamlined procedures are designed to promote investments in the RE sector by reducing bureaucratic hurdles and avoidance of service contract termination, ultimately supporting our country’s transition to a more sustainable energy landscape.

As of end-June, the DOE had awarded at least 1,435 service contracts with a total potential capacity of over 156,700 megawatts, of which 6,100 MW worth of contracts has already been installed.

Holders of these service contracts should endeavor hard to comply with their timelines and fulfill their obligations to avoid the termination of these agreements. The country cannot afford delays in RE projects any longer.

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