Philippines Streamlines Renewable Energy Development Processes To Boost Investment

In a move aimed at bolstering renewable energy (RE) development and attracting investments, the Department of Energy (DOE) of the Philippines has introduced streamlined guidelines for RE projects.

Under the newly published regulations governing the award and administration of RE contracts, developers are now empowered to commence permit processing and conduct feasibility activities even before the official commencement of their 25-year contract terms. This marks a departure from previous norms where such activities were only allowed post-contract approval and signing by the Energy Secretary.

Developers will receive a Certificate of Authority (COA) from the DOE, granting them the authority to proceed with these preliminary activities. The validity period of the COA varies based on project types: three years for biomass, geothermal, hydropower, ocean, and onshore and offshore wind projects; two years for floating solar; and one year for land-based solar projects. The DOE retains the right to revoke the COA if developers fail to demonstrate sufficient progress within the stipulated periods.

Moreover, the DOE has streamlined the process for duty-free importation incentives. Developers of certain projects can now obtain a Certificate of Registration (COR) upon signing the contract or upon proof of financial closing, providing them flexibility in availing duty-free importation incentives during the project development phase.

The updated guidelines also introduce opportunities for new investments within existing contract areas. Developers can apply for additional RE contracts and potentially benefit from extended contract terms and incentives for capacity-increasing investments.

To facilitate these improvements, the Energy Virtual One-Stop Shop (EVOSS) System will undergo enhancements over a five-month period starting from June 25, 2024, or the date of the guidelines’ effectivity. During this period, the processing of Letters of Intent (LOI) and RE applications will be temporarily halted. However, applications submitted before this date will continue to be processed by the DOE’s Renewable Energy Management Bureau (DOE-REMB).

Additionally, the enhancement period will involve updating de-listed RE contracts, modifying the EVOSS System, collaborating with relevant government agencies like the Department of Environment and Natural Resources (DENR), Board of Investments (BOI), and local government units (LGUs), and establishing procedures for real-time updates of available areas for service or operating contract applications by the DOE-Information Technology and Management Services (DOE-ITMS).

Secretary Raphael P.M. Lotilla of the DOE expressed optimism about the impact of these new guidelines, stating, “The implementation of these new guidelines marks a significant step towards facilitating faster RE project implementation, fostering innovation, and attracting investments across the archipelago.”

The DOE-REMB has initiated orientation sessions, beginning with national government agencies on June 13, 2024, to familiarize them with the new application procedures. Similar sessions with private stakeholders will be scheduled and posted on the DOE website to guide them through the updated process.

The streamlined guidelines are expected to pave the way for accelerated RE project development, contributing to the Philippines’ goal of expanding its renewable energy capacity and achieving sustainable development objectives.