BUSINESS groups have welcomed the Department of Energy (DOE)’s decision to amend provisions of Renewable Energy (RE) Act of 2008 to allow more foreign players to participate in the Philippine renewable energy sector.
In a statement on Thursday, the German-Philippine Chamber of Commerce and Industry Inc. (GPCCI) said it commends the Energy department’s decision under Department Circular No. 2022-11-0034 to amend provisions of the said law to allow more foreign players to participate in the local renewable energy sector.
“The renewable energy sector has always been an interest for many German investors when they consider doing business in the Philippines,” said GPCCI Executive Director Christopher Zimmer.
“Germany has a strong RE industry with a lot of know-how and experience that could contribute to the energy transition of the Philippines. We look forward to seeing the rules finalized so more companies can explore this sector’s large potential for cooperation and energy generation,” Zimmer added.
In a separate statement, the Makati Business Club (MBC) also lauded DOE Secretary Raphael P.M. Lotilla and his team at the DOE for the promulgation of Department Circular (DC) No. 2022-11-0034, which prescribes the amendment to Section 19 of Department Circular 2009-05-0008 titled Rules and Regulations Implementing Republic Act No. 9513.
“Because of our limited generation capacity, investments in RE will make us leapfrog to a power mix that is lower-cost, better for the environment, and even win us a slice of the industry,” MBC Executive Director Francisco Alcuaz Jr. said in a statement on Thursday.
The local business group also said the reform is opportune amid the volatile oil market.
“The International Energy Agency [IEA] said that the most effective way to reduce energy prices for consumers is to invest in and shift to renewable energy in the long term and lessen reliance on oil overtime. This is a timely reform given the global shift towards renewable energy to rely less on the currently volatile oil market. We also look forward to the job creating investments this reform will bring,” MBC said in a statement.
Following the amendment of Section 19 of the IRR of Republic Act No. 9513 or Renewable Energy Act of 2008, foreign-owned entities may engage in the exploration, development, and utilization of the country’s renewable resources such as solar, wind, biomass, ocean or tidal energy.
“The country has a vast potential in RE [renewable energy] development. Now that the foreign equity restrictions in the RE sector has been relaxed, we expect an increase of investments in the sector which would certainly contribute to our economy, provide jobs to our people, and help meet the goal of increasing the RE in the power generation mix of 35 percent by 2030 and 50 percent by 2040,” Lotilla said.
“With the impressive amount of interests the DOE has been receiving both from the local and foreign investors in RE development, particularly in the offshore wind potential, the State can now directly undertake the exploration, development, production and utilization of RE resources or it can enter into RE Service or Operating Contracts with Filipino and/or foreign citizen or Filipino and/or foreign-owned corporations or associations,” the DOE secretary added.
Image credits: Sarah Hamaker/Portland General Electric via AP