Trade and Industry Secretary Alfredo Pascual expressed commitment toward developing renewable energy (RE) for the Philippines and stressed it is not an option, but a necessity.
During the Offshore Wind Conference 2023 on Thursday in Shangri-La, Bonifacio Global City, Pascual said the country's geographic location is advantageous in helping harness the potential of RE.
"Our geographical position... puts us in an enviable position to harness the power of renewable energy. Renewable energy isn't merely an option for us but a necessity," he said.
Pascual said that the country aims to increase the share of RE in its power generation mix to 35 percent by 2030.
"We need over 52,800 megawatts of additional renewable energy capacity to reach our renewable energy target by 2040," he explained.
As part of the efforts in attracting RE investments in the country, the Trade chief stressed that tax and other incentives for RE projects are available under the Philippines' 2022 Strategic Investment Priority Plan (SIPP).
"Proponents of renewable energy projects may opt to be qualified under Tier I or Tier II of the SIPP. The choice will depend on the attractiveness of applicable incentives and the endorsement to be made by the Department of Energy," he said.
In addition, there are also income tax holidays, duty-free importation and tax exemption of carbon credits provided under the Renewable Energy Law.
At present, the Department of Trade and Industry has awarded 65 offshore wind service contracts spread mainly in Northern Luzon, West of Metro Manila, Northern and Southern Mindoro, Panay and Guimaras Strait.
Pascual urged the Chinese companies to invest in the country and bring their expertise in RE where they can also expect policy support such as the Executive Order 21, which includes a Virtual One-Stop Shop System for processing applicable permits for offshore wind activities.
"We invite Chinese companies to bring [to] the Philippines their technology and expertise in equipment design and manufacturing for solar and wind power generation," he said.
Source: Manila Times