Foreign entities can now own 100% ownership in renewable energy projects, particularly for the wind and solar investment areas, as the Department of Energy (DOE) issues amendments in the implementing rules and regulations (IRR) of the Renewable Energy (RE) Act of 2008.
The amendments follow the opinion released by the Department of Justice (DOJ) that states that renewable energy investments in the country are not subject to the Constitution’s 40% foreign ownership restriction.
“With the impressive amount of interest, the Department of Energy (DOE) has been receiving both from local and foreign investors in RE development, particularly in the offshore wind potential, the State can now directly undertake the exploration, development, production, and utilization of RE resources or it can enter into RE Service or Operating Contracts with Filipino and/or foreign citizens or Filipino and/or foreign-owned corporations or associations”, Energy secretary Raphael Lotilla said in a statement.
For hydropower projects, however, Lotilla said that the “appropriation of waters direct from the source shall continue to subject foreign ownership in the Water Code.”
“The country has a vast potential in RE development. Now that the foreign equity restrictions in the RE sector have been relaxed, we expect an increase in investments in the sector which would certainly contribute to our economy, provide jobs to our people, and help meet the goal of increasing the RE in the power generation mix of 35 percent by 2030 and 50 percent by 2040,” Lotilla said.