Philippines: DOE Amends RE Act Implementing Rules and Regulations to Allow Full Foreign Equity in RE Projects

DFDL Philippines

7th December 2022

On 15 November 2022, the Secretary of the Department of Energy signed a DOE Department Circular amending the Implementing Rules and Regulations of Republic Act No. 9513 (the Renewable Energy Act of 2008), removing the nationality restrictions on the exploration, development, and use of renewable energy.

On 15 November 2022, the Secretary of the Department of Energy (“DOE”) signed DOE Department Circular (“DC”) No. 2022-11-0034 which amends the Implementing Rules and Regulations of Republic Act No. 9513 (otherwise known as the Renewable Energy Act of 2008). The amendment removes the nationality restrictions on the exploration, development, and utilization of renewable energy resources such as solar, wind, biomass, ocean or tidal energy.

This development follows the September 2022 Opinion of the Department of Justice that the exploration and development of solar, wind, hydro and ocean or tidal energy should NOT be subject to the forty percent (40%) foreign equity limitation under the Constitution. It must be noted, however, that the nationality restriction continues to apply to the exploration, development and utilization activities that appropriates water direct from a natural source, and geothermal resources (except those covered by financial or technical assistance agreements for large-scale exploration, development and utilization of geothermal resources).

DOE DC No. 2022-11-0034 is expected to be published by the fourth week of November 2022. It shall take effect fifteen (15) days upon its publication in two (2) newspapers of general publication and filing with the University of the Philippines Law Center – Office of the National Administrative Register.

The information provided here is for information purposes only, and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.

Contact

Cristina Suralvo

Partner, Ocampo & Suralvo Law Offices
csuralvo@ocamposuralvo.com
www.ocamposuralvo.com

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Philippines

For Philippine legal and tax matters, DFDL collaborates with Philippine law firm Ocampo & Suralvo Law Offices firm (OS Law).

OS Law is comprised of Philippine attorneys with outstanding academic and professional backgrounds and decades of legal, government, and regulatory experience. They are skilled industry advisers, having worked at top Philippine law firms and professional service firms where they have been involved in significant transactions and dealt with foreign clients acquiring, managing, or divesting Philippine investments. The power and energy sector is a key focus for OS Law as it builds on its partners’ experience with the industry in previous professional capacities.

OS Law assists in all aspects of Philippine general corporate and commercial legal practice across the spectrum of clients’ business concerns including mergers, acquisitions, joint ventures, corporate restructuring, foreign direct investments, and taxation.

Their partners’ expert knowledge of the Philippine regulatory framework and experience with domestic and foreign investment proposals, combined with access to DFDL’s regional legal and tax expertise and extensive experience in international cross-border transactions in the South and Southeast Asian markets for more than 20 years, enables OS Law to assist clients in optimizing opportunities and handling investments in this part of the globe.

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