The Philippine Economic Zone Authority (Peza) has partnered with a local renewable energy firm to establish two solar facilities for economic zones in Cavite and Baguio.
Peza said on Thursday it had signed a memorandum of understanding with Upgrade Energy Philippines Inc. (UGEP) on Sept. 22, with the first phase of the cooperation involving the establishment of a 10-megawatt solar facility each at the Cavite Economic Zone (CEZ) and Baguio City Economic Zone (BCEZ).
The investment promotion agency said it would conduct feasibility studies in the two economic zones to determine the viability of the two projects in the first phase.
The generated power can be sold to locator firms at the CEZ and the BCEZ through designated distribution utilities inside the two ecozones.
For its part, Peza said it would provide the necessary assistance needed by UGEP to conduct the studies, as well as in the identification of land areas within the economic zones which are suitable for the project.
Peza will likewise assist in the registration of the solar photovoltaic facilities under the investment promotion agency pursuant to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law and the Renewable Energy Act of 2008.
The partnership between Peza and UGEP will last for three years upon signing of the partnership agreement.
Peza officer-in-charge and deputy director-general for policy and planning Tereso Panga said the agency welcomes such partnerships which promote the goal of “environment-friendly industrialization.”
“These efforts will also contribute to the country’s overall efforts to attaining our pledge to move ahead with urgency and cut greenhouse gas emissions through localized climate change interventions and transition from coal to clean energy,” Panga said in a statement.
Renewable Energy projects and activities are eligible for incentives under the government’s industrial priorities policy, the Strategic Investments Priorities Plan.
Other fiscal incentives are given by Peza to registered firms, which include income tax holidays, a preferential 5 percent tax rate on gross income, zero value-added tax rating, as well as tax and duty free importation of capital equipment, raw materials and supplies. Also, locators are granted special visas.