The Board of Investments (BOI) of the Philippines has unveiled a set of additional incentives aimed at projects that generate their own electricity through renewable energy facilities. This significant development, outlined in a recent memorandum circular, presents updated guidelines pertaining to energy efficiency and conservation initiatives, particularly those listed in the 2022 Strategic Investment Priority Plan.
The announcement comes in fulfillment of a commitment made by President Ferdinand R. Marcos Jr. to provide support to Japanese firms and other investors in the Philippines who are establishing their renewable energy facilities to meet their electricity demands.
Under the updated memorandum circular, self-financed energy efficiency projects stand to benefit from income tax holidays and duty exemptions on the importation of capital equipment, raw materials, and spare parts. Notably, the income tax holiday has been bounded by the entitlement period specified in the CREATE (Corporate Recovery and Tax Incentives for Enterprises) Act or until 50% of the capital investment (excluding land and working capital) has been recouped, depending on which comes first.
A recent example of a company harnessing these incentives is Japanese manufacturer MinebeaMitsumi, which recently installed a ground-mounted solar power system in its factory located in Danao City, Cebu. With a capacity of 7.9 megawatt hours, this ambitious venture is set to supply 8% of the factory's total electricity consumption, delivering a substantial reduction in greenhouse gas emissions.
The BOI is fervently urging registered companies to leverage these new incentive guidelines, signaling the Philippines' resolute commitment to transitioning toward clean energy solutions that promote sustainability and environmental responsibility.
In a promising stride toward renewable energy expansion, the Philippines is poised to witness an influx of investments that will not only bolster the nation's energy sector but also reduce its carbon footprint, echoing global environmental imperatives.
