The Department of Energy (DOE) is optimistic about the Board of Investments’ (BOI) recent report, which reveals that investment inflows in the country have reached Php 1.35 trillion since January, surpassing last year’s Php 1.26 trillion.
The energy sector’s contribution, accounting for Php 1.29 trillion or 95% of total renewable energy (RE) investments, is seen as a major driver of the country’s growth.
“The DOE is committed to work with the private sector and our partner agencies in the national government and local government units (LGUs) to ensure that these approved investments will ripen into beneficial and tangible energy infrastructure for our people,” said Energy Secretary Raphael P.M. Lotilla.
The energy department said that the recent surge in investments can be linked to strategic policies aimed at attracting investors. Notably, the lifting of foreign ownership restrictions on most renewable energy projects, along with measures to expedite their development, has played a significant role.
Central to this strategy is the Green Energy Auction Program (GEAP), which not only ensures competitive pricing for renewable energy but also boosts project viability with a 20-year offtake guarantee.
This year’s third round of the Green Energy Auction Program (GEAP) will target capacities in impounding and pumped storage hydropower, as well as geothermal technologies. Subsequently, the fourth round will shift its focus to Integrated Renewable Energy and Energy Storage Systems (IRESS) and advancements in natural gas technologies.
The department also streamlined the application process for renewable energy development and established duty-free importation incentives.
Furthermore, it opened up new investment opportunities within existing contract areas, enabling entities to apply for additional renewable energy contracts. This initiative could result in longer contract terms and enhanced incentives for investments aimed at increasing capacity.
“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 (BSP), to align the needs of developers with the objectives of financial institutions to effectively support these projects,” Lotilla added.
