President Marcos has presented an ambitious roadmap for the Philippines’ energy future, emphasizing the importance of renewable energy sources such as hydropower, geothermal power, solar, and wind. The goal is for renewables to account for 35% of the country’s energy requirements by 2030 and 50% by 2040, in contrast to the current level of 23%.
The government’s efforts to promote renewables have been promising so far. In November last year, the Department of Energy (DOE) issued a circular that allows foreign investors to own all of the equity in projects related to solar, wind, hydro, and ocean energy. This move has positioned the Philippines as an attractive renewable energy market in the region.
To further incentivize investment in clean energy, the government has offered new incentives under the 2022 Strategic Investment Priority Plan. These incentives include income tax holidays and preferential tax rates for investors in renewable energy, energy storage, and other green economy industries. Additionally, the DOE is working to streamline the permitting process for renewable energy projects by integrating different government agencies into a single platform.
The private sector has responded positively to these policies, with the government awarding over a thousand active renewable energy projects across the country. However, there are still challenges to overcome. The national transmission grid needs to be prepared to handle the additional power generated by these projects, and pricing for renewable energy needs to be competitive with fossil fuels to attract private investment.
Despite these challenges, the Marcos administration is committed to achieving a more climate-friendly energy mix. Both the government and the private sector must work together to secure the country’s energy needs from renewable sources at affordable prices.
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