Philippines ramps up renewables: $73.5 billion projects get green light
Renewable energy gets lion’s share of 'green lane' certified projects
Manila: The Philippines is making significant strides in promoting renewable energy and attracting foreign direct investments (FDI) in the sector.
The Board of Investments (BOI) has so far granted “green lane certificates” to 114 renewable energy projects valued at 3.74 trillion pesos ($66.56 billion), according to the state investment promotion agency.
126
All told, board's One-Stop Action Center for Strategic Investments (OSAC-SI) has granted green lane certificates to 126 projects worth 4.13 trillion pesos ($73.5 billion) amid the push to scale up foreign direct investments (FDI) in key industries.
What green lane certificates mean
These certificates expedite the processing of permits and licenses in national government agencies (NGAs) and local government units (LGUs).
With a "green lane" endorsement, the provisional authority to operate gets fast-tracked, significantly cutting the usual 60-day processing period required by the Energy Regulatory Commission (ERC).
For example, due to the green lane certifications, Aboitiz-led PV Sinag Power, Inc. has kicked off operations of the 94.717 megawatt-power Cayanga-Bugallon Solar Power Project in Panagasinan.
Calabanga Renewable Energy (CARE) Inc. also started the 74.13 megawatt Calabanga Solar Power Project valued at 3.6 billion pesos ($64 million).
In addition to attracting investments, the green lane initiative is expected to bolster job creation, ramp up the domestic energy industry and curb carbon emissions.
Renewable energy projects (RE)
- 114 of the 126 projects are in the renewable energy sector, totaling 3.74 pesos trillion ($66.56 billion).
- 36 RE projects worth 1.64 trillion pesos ($29.18 billion) are already registered with the BOI for fiscal and non-fiscal incentives.
Offshore wind
Most of the big-ticket projects approved recently involve offshore wind energy.
The include a 289-billion pesos ($5.15 billion) offshore wind project in Ilocos Norte, which received green lane certification last month, and BuhaWind Energy Philippines, a Filipino-Danish partnership, which has also secured green lane certificates for three offshore wind energy projects worth over 600 billion pesos ($10.6 billion).
The BuhaWind projects will be located in Northern Luzon, Northern Mindoro, and Eastern Panay, with a total power generation capacity of 4 gigawatts.
Strategic projects
OSAC-SI has also granted green lane treatment to:
- 6 projects in digital infrastructure worth 346.33 billion pesos ($6.2 billion)
- 2 manufacturing projects worth 29.61 billion pesos ($527.3 million)
- 4 projects in food security valued at 4.14 billion pesos ($73.7 million).
Green Lane Initiative
Trade Undersecretary and BOI Managing Head Ceferino Rodolfo highlighted that the green lane initiative strengthens the Philippines’ global competitiveness by attracting investments focused on innovation and sustainability.
He explained that the 4.13-trillion pesos ($73.5 billion) worth of certified investments will be pivotal for renewable energy growth, job creation, carbon footprint reduction, and push the country's sustainable development drive.
Projects in operation
Two previously granted green lane-certified projects have commenced operations: PV Sinag Power Inc. (PVSPI), a subsidiary of Aboitiz Power, began the commercial operations of its 94.72 MW peak Cayanga-Bugallon Solar Power Project in Pangasinan.
The green lane endorsement significantly shortens the usual 60-day processing time for provisional authority from the Energy Regulatory Commission (ERC).
Nexif Ratch Energy Investments Pte. Ltd. (NREI) started operations for the Calabanga Solar Power Plant in Camarines Sur in September 2023. The green lane certificate, awarded in June, accelerated the timeline of this 3.7 billion pesos ($65.9 million) investment.
Aim: Be the first to operate an offshore wind (OSW) power plant in the Asian country, the San Miguel Bay Offshore Wind Project
Capacity: 1 gigawatt
Investment: 170 billion pesos ($3 billion)
Location: Camarines Norte and Camarines Sur
Full scale: CIP has commited to invest $5 billion to develop 2 GW of offshore wind projects in the Philippines.
Executive Order 18
Signed by President Ferdinand R. Marcos Jr. in February 2023, Executive Order 18 established the OSAC-SI to give green lane treatment to strategic investments by simplifying and streamlining approval processes at the NGAs and LGUs.
This initiative is seen as a key driver for fostering a business-friendly environment and accelerating investments in renewable energy and other vital sectors.
Green lane initiative: Green lane certificates granted to 126 projects, expediting their approval process, according the BOI's OSAC-SI
Renewable Energy Projects: 114 out of 126 projects are focused on renewable energy, with a total value of 3.74 trillion pesos.
Offshore wind energy: Many of the large-scale projects are in offshore wind energy, including BuhaWind Energy Philippines’ three projects in Northern Luzon, Northern Mindoro, and East Panay.
Other projects: The green lane initiative also covers projects in digital infrastructure, manufacturing, and food security.
Successful implementations: PV Sinag Power Inc. and Nexif Ratch Energy Investments Pte. Ltd. have successfully commenced operations of their solar power projects with the help of green lane certifications.