THE department circular that will set guidelines for endorsing energy efficiency projects to the Board of Investments (BoI) for fiscal incentives is nearing approval, according to the Department of Energy (DoE).
The DoE said in a statement Friday that a third public consultation on the draft circular was conducted on April 15, attended by industry representatives and other stakeholders.
According to the DoE, the consolidated and final version of the proposed circular will be sent to Energy Secretary Alfonso G. Cusi for approval.
“I look forward to receiving the final copy of the department circular so we can release it at once. This will be a big boost in our efforts to attract investors as more fiscal incentives are given to energy efficiency projects,” Mr. Cusi said.
The circular contemplates incentives such as income tax holidays.
“The DoE will evaluate energy efficiency projects and determine the total effect in consideration to energy savings that will lead to the reduction of greenhouse gas emissions, and lowered operational costs,” it said.
Energy Undersecretary Jesus Cristino P. Posadas said on April 12 that the BoI has determined that a substantial income tax holiday is needed to ease the cost burden of capital-intensive projects being undertaken during a global economic slump.
“Pioneers… stand to reap greater rewards, especially in terms of immediate lower operational costs, (and) the possibility of short-term cost recovery for upgrading systems with energy efficient technology. Industry-wide participation can greatly reduce greenhouse gas emissions especially when done at a large scale,” Mr. Posadas said.
Once approved, the proposed department circular will serve to further operationalize Republic Act No. 11285 or the Energy Efficiency and Conservation Act, passed in 2019. — Revin Mikhael D. Ochave