Following the record-high investment approvals at the Board of Investments (BOI) driven by renewable energy (RE) projects, Department of Energy (DOE) Secretary Raphael Lotilla on Wednesday vowed to turn these pledges into tangible infrastructure.

Lotilla has welcomed the PHP1.35 trillion approvals at the BOI from January to Sept. 15, with PHP1.29 trillion coming from RE projects.

He said the Marcos administration’s policy to open up the RE sector to full foreign ownership has boosted the investment interest for RE technologies in the country.

“The DOE is committed to work with the private sector and our partner agencies in the national government and local government units (LGUs) to ensure that these approved investments will ripen into beneficial and tangible energy infrastructure for our people,” Lotilla said in a statement.

According to the DOE, the agency has awarded 1,327 RE service contracts as of March 2024 with a total potential capacity of 137.8 gigawatts, of which 5.8 GW have already been installed.

“With banks and financial institutions playing a vital role in our quest for the accelerated development of renewable energy projects, we are working closely with banks and financial institutions, through the Bangko Sentral ng Pilipinas (BSP), to align the needs of developers with the objectives of financial institutions to effectively support these projects,” the DOE chief added.

While the BOI providing incentives for qualified RE projects such as income tax holidays, a preferential tax rate on gross income, zero value-added taxes rating, as well as tax- and duty-free importation of capital equipment, raw materials and supplies, Lotilla said the DOE will continue its initiatives to increase the adoption of RE, including the Green Energy Auction Program in the Philippines. (PNA)