CAGAYAN DE ORO — The Board of Investments (BOI) has intensified efforts to drive renewable energy (RE) adoption across the country through its “Make REshift Happen” roadshow. The most recent leg, held in Cagayan de Oro, engaged more than 30 companies from Northern Mindanao in discussions about the incentives and opportunities available under the Energy Efficiency and Conservation (EE&C) Act or R.A. 11285.
The event kicked off on 29 August 2024 at the Palladium Function Hall in Mallberry Suites, with BOI Chief Investments Specialist Ellen Kionisala welcoming attendees and reaffirming the government’s commitment to advancing its renewable energy goals.
Ms. Kionisala highlighted the government’s proactive stance during the pandemic, stating, “The Philippine government took this lull time to grab the opportunity to strengthen the country’s competitiveness. We had game-changing laws, aggressive infrastructure programs, and policy reforms, to name a few.”
She further explained the two-pronged approach the government took to strengthen the power generation industry, recognizing it as a pillar of economic development. First, the amendment to the Public Service Act (PSA) that allowed 100% foreign ownership in the power generation sector, significantly boosting foreign investments in the country. Second, the enhancement of the guidelines on incentives for industries under the EE&C Act of 2019, which were originally limited to energy services companies, has expanded to allow self-financed energy efficiency and conservation projects to avail of fiscal incentives.
The roadshow continued at the PHIVIDEC Industrial Authority (PHIVIDEC-IA) in Tagoloan on 30 August 2024, where Administrator Atty. Joseph Bernedo underscored the importance of renewable energy for industrial estates like PHIVIDEC, which is home to 59 locators and over 200 service providers.
Further, he noted how locators stand to benefit significantly from adopting RE solutions, explaining that transitioning to renewable energy would enhance energy efficiency and reduce costs for businesses in the long term. He encouraged locators to leverage the government’s incentives, making the shift to RE both economically viable and environmentally responsible.
BOI Director for Resource-Based Industries Service Raquel Echague led the roadshow in Northern Mindanao and discussed the integrated approach of the roadshow’s goals. “We coined it as ‘Make RE-shift’ because for this project you are actually doing two things: you are installing an RE facility and at the same time making your operations energy efficient,” she explained.
Director Echague then presented the guidelines for registering EE&C projects, explaining the benefits of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. These incentives are aimed at supporting businesses that adopt energy efficiency measures and integrate renewable energy into their operations.
In a major milestone for the “Make REshift Happen” efforts, the BOI recently approved the registration of Nakashin Davao International Inc.’s 519.2 kWp Solar PV Rooftop System project. This marks the first RE project to be granted energy efficiency incentives under the EE&C Act. With a project cost of Php26 million, Nakashin’s solar installation is expected to generate annual energy savings of 17.27 GWh over its 25-year lifespan, reducing CO2 emissions by 137,000 tons. This project was endorsed by the Department of Energy (DOE) and entitles Nakashin to an Income Tax Holiday (ITH) covering 50% of its capital investment, a benefit under the CREATE Act.
The “Make REshift Happen” roadshow in Cagayan de Oro is part of a nationwide campaign targeting businesses located in ecozones and industrial parks in Luzon, Visayas, and Mindanao. The BOI’s initiative is designed to raise awareness about the importance of renewable energy and encourage private sector participation in the country’s green transition.