The Philippines Liberalizes Renewable Energy Resources to Foreign Investors
On December 8, Circular 2022-11-0034 came into effect in the Philippines, which amended Section 19 of the Renewable Energy Act of 2008 (Republic Act No. 9512) by removing the requirement of a minimum 60 percent Filipino ownership of certain renewable energy resources. The Philippine government is seeking to attract greater foreign investment in renewable energy projects, accelerating the Philippines’ transition to renewable energy and meet renewable energy goals outlined in the National Renewable Energy Program (NREP) 2020-2040. The amendment enables foreign investors to hold 100 percent equity, up from 40 percent, in exploration, development, and utilization of solar, wind, hydro, and ocean or tidal energy resources. Foreign investors that are already part of joint ventures with a Filipino counterpart can now take controlling stakes. On January 9, Energy Secretary Raphael Lotilla announced that nine Chinese energy companies have pledged to invest P760 billion (US$13.76 billion) in renewable energy projects in the Philippines following a roundtable with President Ferdinand Marcos Jr. in Beijing. The projects have yet to be specified and are expected to be concentrated in wind and solar projects. The Philippines is aiming to increase its share of renewable energy to 50 percent by 2040.