The Government of the Philippines Revamps Rules for Renewable Energy Projects
On June 15, the Department of Energy of the Philippines (DOE) announced new guidelines for the renewable energy (RE) development application process with an aim to better facilitate business operations in the country. The most substantial change includes granting developers a Certificate of Authority (COA) within a specific period to secure permits and carry out feasibility studies before the actual start date of their service contract. The DOE will also be streamlining the process for duty-free importation incentives and allowing developers to apply for additional contracts and potentially enjoy extended terms and incentives for capacity-increasing investments within contract areas. With the implementation of the new guidelines and enhancements of one-stop shop systems, the DOE will pause reviewing RE applications for five months starting June 25.
DOE Energy Undersecretary Sharon Garin stated that the overhaul of guidelines came in the context of rapid development in the renewable energy industry with about 1,300 existing contracts overseen by the DOE. According to Garin, this number will sufficiently meet future needs to reach thegovernment targets of 35% renewable energy share in 2030 and 50% in 2040. With stricter applications but more generous allowances for project completion and expansion, the Philippines hopes this process will narrow applications down to the more “serious and legitimate companies” to help realize national decarbonization goals.