The government hopes to entice more offshore wind power projects after the Board of Investments (BOI) approved three offshore wind projects totaling Php 390 billion in the first quarter.
In an article by the Business World, Trade Secretary Alfredo E. Pascual explained that the offshore wind projects have a total capacity of 1,300 megawatts (MW) in Cavite, Negros Occidental, and Guimaras.
Pascual shared that the Philippines is ideal for offshore wind investments because of its geographical position. He added that renewable energy (RE) is not just an option but a necessity, which is why the government is pushing and promoting renewable energy.
Furthermore, to achieve its goal of having renewable energy (RE) comprise 50% of the power generation mix by 2040, the Philippines will need to secure a total of 52,800 MW of renewable energy capacity.
As the Philippines anticipates robust economic growth of 6% to 7% in the coming years, the demand for energy is also expected to increase. Pascual said that the current supply of clean energy is projected to fall short of meeting this rising demand.
Pascual added that the country welcomes Chinese and other foreign investments in renewable energy projects in the Philippines.
Investors in RE projects can take advantage of various incentives and benefits provided under the 2022 Strategic Investment Priority Plan (SIPP) and the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE). The Renewable Energy Law also offers attractive provisions such as income tax holidays, duty-free importation, and tax exemption for carbon credits.
In April, President Ferdinand R. Marcos Jr. issued Executive Order No. 21, which aims to facilitate the development of local offshore wind resources by establishing an administrative framework. Additionally, the order expedites the permit application process by integrating the Energy Virtual One Stop Shop system (EVOSS).