The Philippines is improving its renewable energy development processes to increase investment

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

Under newly published regulations governing the award and administration of RE contracts, developers now have the opportunity to begin processing permits and conducting feasibility studies before the official commencement of 25-year contracts. This marks a departure from previous standards in which these types of activities were only permitted after the Secretary of Energy approved and signed the agreement.

Developers will receive a Certificate of Authorization (COA) from DOE granting them authority to continue with these initial activities. The validity period of a COA varies depending on the type of project: three years for biomass, geothermal, hydro, ocean, and onshore and offshore wind projects; two years for floating solar; and one year for land-based photovoltaic projects. The DOE reserves the right to revoke the COA if developers do not demonstrate sufficient progress within specified deadlines.

Additionally, DOE has streamlined the incentive process for duty-free imports. Developers of certain projects can now obtain a Certificate of Registration (COR) after signing a contract or providing proof of financial close, giving them the flexibility to benefit from duty-free import incentives during the project development phase.

The updated guidelines also introduce opportunities for new investments within existing contract areas. Developers can apply for additional renewable energy 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 be improved over a period of five months starting from 25 June 2024, the date of entry into force of the guidelines. During this period, processing of Letters of Intent (LOI) and RE applications will be temporarily suspended. However, applications submitted before this date will still be processed by the Department of Energy’s Renewable Energy Management Office (DOE-REMB).

Additionally, the improvement period will include updating delisted RE contracts, modifying the EVOSS System, and working with relevant government agencies such as the Department of Environment and Natural Resources (DENR), the Board of Investments (BOI) and local government units (LGUs). and establishing procedures for real-time updates of available areas for service applications or operating agreements through DOE-Information Technology and Management Services (DOE-ITMS).

Secretary of State Raphael Lotilla of the DOE expressed optimism about the impact of these new guidelines, stating: “The implementation of these new guidelines is a significant step toward facilitating faster implementation of RE projects, supporting innovation, and attracting investment across the archipelago.”

DOE-REMB initiated orientation sessions beginning with state 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 simplified guidelines are expected to pave the way for accelerated development of renewable energy projects, contributing to the Philippines’ goal of increasing renewable energy generation capacity and achieving sustainable development goals.

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