BOI approves investments in renewable energy

The Board of Investments (BOI) has approved a total of 144 renewable energy investment projects worth P170.947 billion from 2010 up to December 2015 with a total generating capacity of 3,861 megawatts.

BOI renewable energy

“Our industry development programs are geared towards building sustainable and resilient communities, which includes achieving sustainable energy sources,” said Department of Trade and Industry Undersecretary and BOI Managing Head Ceferino Rodolfo. He added that the development of renewable energy resources supports the country’s new industrial policy which includes the “greening” of industry roadmaps.

“Greening” a business refers to the adoption of practices and operational procedures to improve efficiency in the use of natural resources and power. Renewable energy sources include biomass, solar, wind, hydro, geothermal, and ocean energy.

Renewable energy is listed as a priority investment sector in the BOI’s Investment Priorities Plan (IPP), the country’s investments blueprint. The BOI closely coordinates with the Department of Energy (DOE) to ensure that investments support the Philippine Energy Plan (PEP) 2010-2030 and is consistent with the Renewable Energy Act of 2008 which mandates the consideration of renewable energy projects.

The country’s current installed capacity for power generation is 17,025 megawatts, which is largely located in the Luzon grid. Based on DOE’s 2014-2019 demand-supply projections, an additional 5,100 megawatts is needed in all major grids of the country.  The Luzon grid needs at least 3,800 megawatts, Visayas, 900 megawatts, and Mindanao around 400 megawatts. Out of the required energy capacity, only 45 power generating plants with a consolidated capacity of 3,382.75 megawatts (combined renewable energy and conventionally-fuelled) are committed to go online this year.

Among the renewable energy projects approved by the BOI is Alternergy Wind One Corporation which recently inaugurated its 60 hectare wind farm in Pililia, Rizal. The wind farm, the first of its kind in the Rizal province, runs 27 wind towers, each producing 2 MW, and has a total capacity of 54 MW of clean electricity capable to supply electricity requirements of 66,000 households.

The PEP has indicated that at least P3 trillion in fresh investments are needed to attain the goal of energy security. “We encourage investments in the energy sector. Energy is a major concern across industries, especially now that we already experiencing the resurgence of the manufacturing industry,” said Rodolfo.

The Manufacturing Resurgence Program (MRP) aims to support the development and growth of manufacturing related industries including government funding to support its key initiatives.

—From the Board of Investments