The Department of Energy (DOE) has expressed enthusiasm over a recent report from the Board of Investments (BOI), revealing a record-breaking P1.35 trillion in investments approved from January to date, surpassing last year’s total of P1.26 trillion. A significant portion of this growth stems from the energy sector, which accounted for P1.29 trillion, or 95% of total investments attributed to renewable energy.

This surge highlights the effectiveness of government policies under President Ferdinand Marcos Jr.’s administration, which have fostered a favorable environment for investments. Key initiatives include lifting foreign ownership restrictions on most renewable energy projects and implementing the Green Energy Auction Program (GEAP). This program ensures transparent pricing and enhances project bankability with a 20-year offtake guarantee.

The government has also streamlined the application process for renewable energy projects, providing duty-free importation incentives and creating opportunities for additional contracts within existing areas. Investments registered with the BOI come with various incentives, including income tax holidays and zero value-added taxes (VAT).

Energy Secretary Raphael P.M. Lotilla emphasized the DOE’s commitment to collaborating with the private sector and local government units to transform these investments into tangible energy infrastructure. He also noted the importance of financial institutions in supporting renewable energy projects and highlighted a recent forum organized by the Bangko Sentral ng Pilipinas (BSP) to discuss financing opportunities and challenges.

Since the Renewable Energy Act of 2008, interest in the renewable energy sector has surged. As of March 2024, the DOE has awarded 1,327 renewable energy service contracts, with 5.8 gigawatts installed and potential capacity reaching 137.8 gigawatts, primarily from solar, hydro, and wind sources.

To further boost renewable energy initiatives, the third round of the GEAP is set for this year, focusing on hydropower and geothermal technologies, while the fourth round will target Integrated Renewable Energy and Energy Storage Systems (IRESS) and natural gas technologies.

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