THE German-Philippine Chamber of Commerce and Industry Inc. (GPCCI) welcomed the recent amendments to the provisions of Renewable Energy Act of 2008 which will enable more foreign players to enter the local renewable-energy (RE) sector.
This pertains to the Department of Energy’s (DOE) recent decision under Department Circular 2022-11-003, which will allow foreign citizens or foreign-owned entities to engage in the exploration, development, and utilization of the country’s RE resources such as solar, wind, biomass, ocean or tidal energy, following the amendment of Section 19 of the Implementing Rules and Regulations of Republic Act 9513, or the “Renewable Energy Act of 2008.”
“The RE sector has always been an interest for many German investors when they consider doing business [locally],” said GPCCI Executive Director Christopher Zimmer. “Germany has a strong RE industry, with a lot of know-how and experience that could contribute to the energy transition of the Philippines.”
Zimmer added: “We [expect] seeing the rules finalized, so more companies can explore this sector’s large potential for cooperation and energy generation.”
“With the impressive amount of interest the DOE has been receiving both from local and foreign investors in [RE] development, particularly in the offshore wind potential, the state can now directly undertake the exploration, development, production, and utilization of [RE] resources; or it can enter into [RE] service or operating contracts with Filipino and/or foreign citizens, or Filipino and/or foreign-owned corporations, or associations,” Energy Secretary Raphael Lotilla said.
The chamber noted that the amendments follow the opinion released by the Department of Justice. It states that RE investments in the country are not subject to the Constitution’s 40-percent foreign-ownership restriction.
Lotilla further stressed: “The country has a vast potential in RE development. Now that the foreign equity restrictions in [that] sector have been relaxed, we expect an increase in investments…which would certainly contribute to our economy, provide jobs to our people, and help meet the goal of increasing the RE in the power-generation mix of 35 percent by 2030, and 50 percent by 2040.”
His statement was echoed by DOE Renewable Energy Management Bureau Officer In Charge-Assistant Secretary Mylene Capongcol in an event organized by GPCCI in partnership with Deutsche Gesellschaft für Internationale Zusammenarbeit, or GIZ, in Manila. It covered discussions covering private-sector engagement in the field of RE and green hydrogen to replace diesel generators.