Taguig City - Energy Secretary Raphael P.M. Lotilla is pleased with the heightened enthusiasm of local and international investors for unlocking the country’s renewable energy (RE) potential.
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 & Ilocos, and Southern Mindoro. With headquarters in Spain, 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-county 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 megawatts of RE capacities targeted for addition in the country’s energy mix between 2024 to 2026.
“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 offshore wind (OSW) installations,” Energy Secretary Raphael P.M. Lotilla said.
“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,” Secretary Lotilla announced. “We are working with the 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, the Secretary added.
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 sixty (60) days from its issuance. The President issued EO 21 on 19 April 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, 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.
Secretary Lotilla added that investments in OSW from foreign companies, such as that recently announced by BlueFloat, would bring cutting-edge technology with the company’s plan to leverage its floating wind expertise and experience to develop projects along the Philippine coasts and will be working with Filipino partners throughout the construction and operation phase. More importantly, they will work with the various coastal host communities in enhancing the local livelihood opportunities and environmental protection.
Through the Board of Investments (BOI), the government also recently announced that renewable energy projects had taken center stage, with approximately 80 percent of investment approved this year. ###
