0 Comments
The DOE in the Philippines has made remarkable efforts to address the issue of the renewable energy (RE) application process in an effort to improve the business environment and in a bid to meet the nation’s RE objectives. Here’s a more detailed exploration of the recent changes: Here’s a more detailed exploration of the recent changes to requirements:
1. Certificate of Authority (COA)
RE developers are now allowed to apply for permits, conduct surveys, and carry out a feasibility study before the commencement of a 25-year contract. The DOE then releases a COA, the validity of which is time-based depending on the type of project. For instance:
Biomass, geothermal, hydropower, etc.: Three-year COA
Solar and wind: Two-year COA
The Certificate of Authority acts as a go ahead signal for the project development, which enables the developers to proceed with the project with great confidence.
2. Duty-Free Importation Incentives
This registration certificate is issued to the developers upon signing of the contract or financial closing to facilitate duty-free import of inputs in the project. This incentive promotes timely completion of the necessary equipment and materials importation at the lowest cost possible.
3. Additional Contracts and Extensions
Previous to this, a developer could only apply for RE contracts in the initial project that they are involved in. Also, they have a chance to prolong the contracts and incentives for the additional capacities. This allows change as energy demands shift and helps to maintain a lasting interest in RE.
4. Transition and EVOSS Suspension
The Energy Virtual One-Stop Shop (EVOSS) System which is an online transactional platform will experience improvements for the next five (5) months effective on June 25, 2024. In this period, new LOI and RE application will be temporarily suspended. The upgrade is in a bid to enhance the effectiveness of the services as well as the satisfaction of the users.
National RE Goals
Looking at the DOE’s targets, the country aims to attain 35% RE in the energy mix by 2030 and 50% by 2040. These goals are in accordance with the global fight against climate change and the shift towards the use of green energy sources.