The Department of Energy (DOE) is expecting more local and international investors in the renewable energy (RE) space once the administrative framework for the development of offshore wind (OSW) resources has been released.
“We are pleased with the positive response from local and foreign investors eyeing our RE potential. We are working on policies that would minimize roadblocks, especially for OSW installations,” DOE Secretary Raphael Lotilla said on Monday. “In the coming weeks, the DOE will issue the policy and administrative framework for the optimal development of OSW resources, including speeding up the approvals of necessary permits.”
Lotilla said the DOE is working with concerned government agencies, local government units, and the transmission concessionaire to implement the directives of President Ferdinand Marcos Jr. under Executive Order (EO) No. 21.
Under EO 21, the DOE is directed to publish the policy and administrative framework for the efficient and optimal development of OSW resources in the country within 60 days from its issuance on April 19, 2023. It seeks to harmonize and streamline permitting processes and leasing fees under a whole-of-government approach and fully implement the Energy Virtual One-Stop Shop (EVOSS) System to cover all relevant government agencies and bureaus.
Apart from policy enhancements, the agency said there are available incentives for RE projects under the 2022 Philippine Strategic Investment Priority Plan (SIPP). In addition, there are also income tax holidays, duty-free importation, and tax exemption of carbon credits provided under Republic Act No. 9513 or the Renewable Energy Act.
Through the Board of Investments (BOI), the government also recently announced that RE projects had taken center stage, with approximately 80 percent of investment approved this year.
Recently, BlueFloat Energy announced its market entry in the Philippines through the acquisition of Wind Energy Service Contracts (WESCs) in four sites to be located in Bataan, Batangas, Cagayan and Ilocos, and Southern Mindoro.
BlueFloat has a total portfolio of offshore wind projects worth 32.4 gigawatts (GW) of planned capacity in ten countries across the globe, including Spain, France, Italy, Scotland, Australia, New Zealand, Taiwan, Colombia, Portugal, and the Philippines. The proposed Philippine projects collectively represent the largest single country planned initiative of BlueFloat at 7.6 GW.
The DOE has also recently received an overwhelming response for the Second Round of the Green Energy Auction (GEA-2) program with 118 pre-qualified companies that will inject capital for the 11,600 megawatt of RE capacities targeted for addition in the country’s energy mix between 2024 and 2026.