MANILA, Philippines – Senator Win Gatchalian hopes that investors will increase in renewable energy or RE following the release of the opinion of the Department of Justice or DOJ that natural resources such as solar, wind, hydro and ocean or tidal energies are not covered of the constitutional limit on foreign ownership.
“Removing the 40% foreign ownership cap is a game-changer. This puts the country on the right path so that we can attract investors so that we can establish more renewable energy facilities that can respond to the issues of climate change and the increase in oil prices in the middle of the ongoing war between Russia and Ukraine, ” said Gatchalian.
He emphasized that when the foreign ownership limit is removed, the use of renewable energy facilities in the country will be strengthened, which is expected to lower the price of electricity and encourage jobs in the communities where these renewable facilities will be established.
According to Gatchalian, who is the vice chairman of the Senate Committee on Energy, the lack of limits on foreign ownership of renewable energy facilities will also support the latest decision of the Department of Energy or DOE to increase the percentage of use of RE in on-grid areas from 1% to 2.52% starting in 2023. This he said will help reduce the country’s dependence on fossil fuel and coal-based power plants.
To date, there are a total of 998 RE contracts equivalent to approximately Php270 billion in investments approved by the DOE. Such contracts have a capacity of 5,460 megawatts and a potential capacity of 61,613.81MW.
According to Gatchalian, any increase in the use of RE can also enhance the development of other renewable energy sources that have not yet been used in the country such as ocean or tidal energy, green hydrogen, off-shore wind, and others.
“Any source of energy within the country will be a big help to consumers and our economy. This is especially critical now that we are experiencing fluctuating energy prices that may hinder the growth of our economy,” added Gatchalian. Ernie Reyes
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