Philippines eyes 50% renewable energy by 2040 with new reforms

Posted on October 21, 2024

The Philippines’ Department of Energy (DOE) actively monitors renewable energy projects to ensure timely implementation. The DOE streamlines processes through updated guidelines that simplify administrative procedures, reduce delays, and hold developers accountable. Non-performing contracts are reassigned to new developers to accelerate progress and build investor confidence.

In June 2024, the DOE introduced revised guidelines for awarding renewable energy contracts, aimed at identifying serious developers. As of June, 105 projects face termination due to non-compliance with timelines, with 88 significantly delayed. These include solar, hydropower, wind, geothermal, and biomass projects. Developers must meet pre-development milestones within two years, or face contract termination unless valid delays, like force majeure, are proven.

A key change is the requirement for developers to obtain a Certificate of Authority (COA) before signing contracts, allowing early project preparation. The COA is valid for varying periods depending on the project type. The revised guidelines also simplify access to incentives, with developers securing a Certificate of Registration (COR) after confirming commercial viability.

The DOE is streamlining permitting through its Energy Virtual One-Stop Shop (EVOSS) System, reducing bureaucratic barriers to investment. As of June 2024, 1,435 service contracts with a potential capacity of 156,700 MW have been awarded, with 6,100 MW installed. The country aims to achieve a 35% renewable energy share by 2030 and 50% by 2040.

Related Articles