9 renewable energy projects worth P26.7B get perks
The Board of Investments (BOI) approved nine renewable energy projects worth P26.7 billion, the agency said in a statement on Friday.
These renewable projects, spearheaded by five separate companies, are now qualified under the prevailing Investment Priorities Plan (IPP), specifically under the incentives listed in the Renewable Energy Act of 2008, which is part of the special laws in the IPP.
The IPP aims to attract investments in certain preferred business activities by enticing them with fiscal and nonfiscal perks such as a four- to six-year income tax holiday. In the case of renewable energy projects, their incentives include an income tax holiday for the first seven years of their commercial operations.
Commenting on the projects, Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said the production of renewable energy was getting cheaper as it becomes a better alternative for meeting energy requirements.
“It is fast becoming a better alternative in addressing power-sufficiency and cost-effectiveness in the economic development of our country,” he said in a statement.
He said some countries were already transitioning to 100-percent renewable electricity, an event that the Philippines would soon have to face.
“Sooner or later, we have to face this inevitability with the expectation it will bring down power costs while ensuring enough power supply for the country,” he added.
The five companies given incentives were Alsons Energy Development Corp., Ecopark Energy of Valenzuela Corp., Repower Energy Development Corp., Ormoc Solar Energy Corp. and Nuevo Solar Energy Corp.
Ormoc accounts for the biggest chunk of investments with two projects having a combined cost of P14.85 billion—a P6.6-billion solar project in Cavite called Naic Solar Power plant, a 100.8-megawatt (MW) plant that would begin operations in January 2019 with 26 workers, and another P8.25-billion 126-MW solar facility that will hire 22 people when operations start in July 2019.
Alsons Energy Development Corp. is putting up a P3.5-billion 15.1-MW hydropower plant in Sarangani with formal operations scheduled to start in August 2020 with 20 personnel.
Named as the Siguil Hydro Power Project, the plant is a run-of-river type of hydro project which aims to capture the flow of Siguil River through a power station equipped with a turbine and generator. The water will be returned to the Siguil River and be discharged finally to Sarangani Bay.
Repower Energy Development Corp. is constructing a
P1.55-billion 6.2-MW hydropower plant known as the Katipunan River Mini-hydropower plant in Bukidnon.
Other than this, Repower is also putting up two additional hydropower plants: The P1.1-billion 4.4-MW Tibag River hydroelectric power plant in Quezon province and the P2.1-billion
10-MW Pulangui IV facility in Bukidnon. All three plants will start commercial operations simultaneously in April 2019 with 18 personnel each, BOI said. —ROY STEPHEN C. CANIVEL
