Philippines ramps up renewables: $73.5 billion projects get green light

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.

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.

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.

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.

OSAC-SI has also granted green lane treatment to:

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.

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.

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.