THE INFLUX in renewable energy investments are the result of policies that have created “a favorable business environment,” the Department of Energy (DoE) said.
“The DoE is committed to work with the private sector and our partner agencies in the National Government and local government units to ensure that these approved investments will ripen into beneficial and tangible energy infrastructure for our people,” Energy Secretary Raphael P.M. Lotilla said in a statement on Wednesday.
On Monday, the Board of Investments (BoI) said it approved 225 investment pledges worth P1.35 trillion this year, surpassing the P1.26 trillion tallied in 2023.
The bulk of the approved investments are in the energy sector, accounting for P1.29 trillion or 95% of the total.
The DoE said the lifting of foreign ownership restrictions was the catalyst behind most new renewable energy projects, alongside steps taken to expedite their development.
The DoE also aims to promote transparent and competitive pricing for renewable energy and enhance project bankability by offering a 20-year offtake guarantee through the Green Energy Auction Program.
Investments registered with the BoI enjoy income tax holidays, a preferential tax rate on gross income, zero-rated value-added tax, as well as tax- and duty-free imports of capital equipment, raw materials and supplies.
“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,” Mr. Lotilla added. — Sheldeen Joy Talavera
