Red tape ties down RE deals

The Philippines has been pushing to accelerate its shift to renewable energy (RE), but progress has been slowed by the complex and extensive licensing requirements that burden developers.

These bureaucratic delays have held back crucial projects needed to meet the country’s growing energy demands and sustainability goals.

Developers like Blueleaf Energy Philippines have long urged the government to streamline the process, as the slow approval of permits for wind, solar, and other RE projects has dampened investments and delayed the completion of vital infrastructure.

“There’s a lot of permitting required because they (the government) also consider the revenues that will be created, as well as jobs, and other related economic activities. RE is the way to go, and we should support it,” said Jason D. Gavina, Head of Community Relations and Marketing at Blueleaf Energy Philippines, during an interview on Straight Talk, an online talk show of Daily Tribune.

Gavina noted that the recent launch of the Board of Investments (BoI) Green Lane has sparked optimism within the industry.

With this new program in place, many believe that the long-standing bottlenecks in securing licenses will finally be addressed, paving the way for the Philippines to hit its RE targets and bolster energy security.

The Green Lane aims to cut red tape, ensuring faster approvals.

“The BoI Green Lane is generally faster, but normally it could take five years just to finish the application,” Gavina added.

While these improvements are encouraging, Gavina stressed that government regulators must continue enhancing the permitting and licensing process to ensure the RE sector can progress without unnecessary hurdles.

Blueleaf Energy, a stand-alone portfolio company of Macquarie’s Green Investment Group, is gearing up to play a significant role in the country’s RE landscape.

In June, the company announced a $1.5 billion fund to build a portfolio of 1,500 megawatts (MW) of solar projects in Laguna, helping to secure a reliable supply of RE for the Philippines.

Commercial-wide project

One of Blueleaf’s flagship projects is NKS Solar One, a 250 MW floating solar facility in the Caliraya and Lumot Lakes of Laguna. This project, which won the Department of Energy’s second round of the Green Energy Auction Program last year, is set to be the country’s first utility-scale floating solar project, with construction expected to begin by the last quarter and the project coming online by early 2026.

Additionally, Blueleaf Energy Philippines is co-developing BlueSolar, a 1.3GW floating solar project on Laguna Lake in partnership with SunAsia.

In August 2023, the Laguna Lake Development Authority and the project partners signed a RE Contract Area Utilization Agreement for ten blocks, each covering hundreds of hectares on Laguna Lake. The project will span several towns, including Cabuyao, Sta. Rosa, Calamba, Victoria and Bay.

Floating solar technology has emerged as a promising solution, particularly in areas facing competing land use demands.

Countries such as Japan, China, Taiwan, Singapore and Indonesia have already embraced this technology, which requires minimal land preparation and offers increased photovoltaic efficiency due to the cooling effect of water, compared to traditional ground-mounted solar systems.