REshift in Visayas: BOI Promotes Energy Efficiency and Conservation Act Incentives

The Board of Investments (BOI) continues to drive renewable energy (RE) adoption and energy efficiency across the Philippines, with its latest initiative targeting businesses in Cebu. During a two-day information session titled “Make REshift Happen” held on September 25 and 26 at SEDA Ayala Center, Cebu, the BOI highlighted the incentives available under the Energy Efficiency and Conservation (EE&C) Act.

The event, organized by BOI’s Cebu Extension Office and the Resource Based Industries Service (RBIS), focused on promoting the integration of energy-efficient and renewable solutions in business operations. The BOI presented the policy framework of the EE&C Act, which incentivizes qualifying projects and helps companies reduce energy costs while contributing to the country’s renewable energy goals.

The EE&C Act is part of the government’s broader push to increase renewable energy use in the Philippines. The country aims for RE to account for 35% of its power generation by 2030 and 50% by 2040.

Director Maria Rosario Dominguez, head of the BOI’s Domestic Investments Promotion Service (DIPS), stressed the importance of energy efficiency in business, calling it a critical element for companies looking to reduce costs and meet global sustainability standards.

“Energy efficiency not only makes good business sense—it’s the way forward,” said Dominguez. “EE&C-approved projects significantly reduce firms’ energy expenses while helping build a sustainable, resilient economy. As global markets demand greener, cleaner operations, it’s imperative that we align and ensure that Philippine companies meet these standards.”

Dr. Rose Marie Mendoza, Chief Investments Specialist of BOI’s Energy Division, discussed the benefits of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, which offers incentives such as an Income Tax Holiday (ITH) allowing companies to claim up to 50% of their capital investments in energy projects.

Dr. Mendoza also highlighted BOI’s recent performance, noting a substantial growth in approved investments. “From January to September 15, 2024, total approved investments reached PHP 1.35 trillion, an 82% increase from the previous year,” Mendoza said. “Of this, PHP 1.29 trillion came from renewable energy projects, demonstrating a strong commitment to sustainability.”

In addition to ITH, self-financed EE&C projects can receive duty exemptions on capital equipment and raw materials. These incentives aim to attract energy-intensive businesses, especially those located in ecozones and industrial parks across the country, including Luzon, Visayas, and Mindanao.

The BOI is expanding its promotional efforts, with a roadshow scheduled for October that will target ecozones and industrial parks in Iloilo and Davao. These roadshows are part of a nationwide campaign launched in 2024, with previous stops in Batangas, Pampanga, and Cagayan de Oro.

The BOI’s efforts to promote renewable energy and energy efficiency aim to position the Philippines as a leader in clean, green, and sustainable industries, fostering long-term economic growth while meeting global environmental standards.