The DOE says majority of potential RE capacities are from solar, hydro and wind accounting for almost 90 percent of the total RE contracts awarded. 

The Department of Energy (DOE) is optimistic the P1.29 trillion worth of approved renewable energy (RE) projects by the Board of Investments (BOI) for the year  will all proceed as planned.

DOE Secretary Raphael Lotilla said in a statement yesterday these  projects are  supported by complementing policies from other agencies 

The P1.29 trillion  approved RE projects accounted for  95 percent of the record-breaking P1.35 trillion total worth of investments it approved between January to September 15.

Investments registered under the BOI enjoy  incentives that  include income tax holidays, a preferential tax rate on gross income, zero value-added taxes rating, as well as tax- and duty-free importation of capital equipment, raw materials and supplies.

“The DOE is committed to work with the private sector and our partner agencies in the national government and local government units (in) ensuring)  these approved investments will ripen into beneficial and tangible energy infrastructure for our people,” Lotilla said.

The DOE said recent government policies which can help in the completion of BOI approved energy projects include the lifting of foreign ownership restrictions of most RE facilities, alongside measures and mechanisms to accelerate their development.

One other policy cited by the DOE is the Green Energy Auction Program which promotes transparent and competitive pricing for RE to enhance project bankability. It also noted RE projects benefit from simplified application process  and duty-free importation .

The DOE also said new investments within existing contract areas are now allowed to apply for additional RE contracts, a policy which promotes an easier way to extend contract terms and incentives for capacity-increasing investments.

“…With banks and financial institutions playing a vital role in our quest for the accelerated development of renewable energy projects, we are working closely with banks and financial institutions, through the Bangko Sentral ng Pilipinas, to align the needs of developers with the objectives of financial institutions to effectively support these projects,” Lotilla said.

The DOE said interest in the country’s RE sector has grown since the implementation of the Renewable Energy Act of 2008.

As of March 2024, the DOE has awarded a total of 1,327 RE service contracts with 5.8 gigawatts (GW) installed and a further potential capacity of about 137.8 GW. 

Majority of potential RE capacities are from solar, hydro and wind accounting for almost 90 percent of the total RE contracts awarded.