The Board of Investments (BOI) said on Wednesday it approved the country’s first renewable energy project eligible for energy efficiency incentives, marking a milestone in the government’s effort to promote sustainable energy solutions in the country.
The BOI said the Nakashin Davao International Inc.’s P26-million solar photovoltaic rooftop system project at the firm’s manufacturing facility was covered under tier 1 of the 2022 Strategic Investment Priority Plan (SIPP).
“The project’s registration entitles Nakashin to an income tax holiday equivalent to 50 percent of its capital investment, a benefit covered by the Corporate Recovery and Tax Incentives for Enterprises Act,” it added.
The 519.2-kilowatt peak (kWp) project is expected to deliver annual energy savings of 17.27 GWh, resulting in a total reduction of 137,000 tons of carbon dioxide (CO2) emissions.
According to the Department of Trade and Industry’s (DTI) lead investment promotions agency, the Department of Energy (DOE) had earlier endorsed the project to their office, aligning government agencies’ goals on implementing sustainability measures.
The BOI earlier said it had approved P1.35 trillion worth of investments starting January, with projects in the renewable energy sector amounting to P1.29 trillion or 95 percent of the total.
The Philippines aims to increase renewables’ share in the power generation mix from the current 22 percent to 35 percent by 2030 and to 50 percent by 2040.
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