BOI unveils new guidelines for self-financed EE projects during PE2 GMM
Record 90% of PE2 regular members welcome 5 new firms
MAKATI CITY, 20 October 2023 – The Philippine Energy Efficiency Alliance (PE2) gathered a record-high of 90.4% of its regular membership during its on-site general membership meeting (GMM) held earlier today in Makati Diamond Residences. During the GMM, the membership welcomed five new Regular B members (in order of approval date): Grundfos Pumps Philippines Inc, iONTEK Power Solutions Corp, Energia Europa SPA, Mitsubishi Heavy Industries Asia Pacific Pte Ltd, Calvelo Engineered Systems Corp, and PHP Philippines Hydro Project Inc (Andritz Group).
PE2 president Alexander Ablaza said, “The Alliance thanks all its members for its steadfast support, manifested by the active and growing participation of members in the GMM. I was particularly thrilled to learn that at least two member representatives flew in from Singapore to attend this semi-annual meeting.”
In a networking luncheon held before the GMM, the Board of Investments (BOI) gave a presentation, "Updates on the Guidelines to Register Energy Efficiency and Conservation Projects under the 2022 SIPP." Representing Executive Director Ma. Corazon Halili-Dichosa of the BOI Industry Development Services were Supervising Investment Specialist Dennis Jesus Panga and Investment Specialist Romalyn Manalo, both of the BOI Resource-Based Industries Service (RBIS).
BOI explained how Memorandum Circular No. 2022-008, which contains specific guidelines to register EE projects (EEP) covered under the Energy Efficiency and Conservation Act for purposes of entitlement of incentives under the CREATE law, was amended to revise the guidelines for self-financed EEPs. The amendment was approved on 16 October 2023 under Memorandum Circular No. 2023-006, which became effective when it was published on 20 October 2023.
The new policy issuance makes it clear that self-financed EEPs will only be entitled to the income tax holiday (ITH) incentive and duty exemption on importation of capital equipment, raw materials, spare parts or accessories. The ITH incentive will be limited to the prescribed ITH entitlement period under the CREATE Act or until the recovery of 50% of its capital investment, excluding cost of land and working capital of the registered EEP, whichever comes first.
BOI also explained that the amended guidelines also qualify alternative fuel vehicles (AFVs) that run on hydrogen, fuel cell, natural gas, and auto-liquefied petroleum gas (LPG) and may be deployed for corporate re-fleeting, operation of shuttles services, public utility vehicles (PUVs) and transport network vehicle service (TNVS), provided, that the said AFVs are original equipment manufacturer (OEM) and are technologically and economically viable.
BOI clarified that the other provisions of Memorandum Circular No. 2022-008, especially the clauses pertaining to EEPs financed through energy service companies (ESCOs) and third-party project developers (TPPDs), remain unchanged.
The GMM was preceded by a special meeting of the PE2 Board of Trustees, where Vice Presidents Ruth Yu-Owen, Theresa Acedillo-Lapuz and Raymond Marquez, Corporate Secretary Richard Henrick Beltran and recently elected Treasurer Ireen Go-Catane presented their respective reports to the Board.
During the GMM proper, PE2 president Alexander Ablaza gave the membership an update on the energy efficiency policy issuances under RA 11285, recent media statements and outreach activities, and made early announcements for the Energy Efficiency Day 2024, which is scheduled for 20 March 2024 at the SMX Convention Center Manila.