CREATE MORE Law expands incentives for energy-saving technologies
The Philippine Energy Efficiency Alliance (PE2), a non-profit group of energy efficiency market stakeholders, on Tuesday praised the expanded incentive package under the CREATE MORE law, saying it could drive more investments into energy-saving projects.
PE2 president Alexander Ablaza said the revised framework enhances the appeal of energy efficiency projects and could lead to greater adoption of advanced technologies across sectors.
“Beyond own-use solar PV projects, we hope that third-party investments in energy efficiency projects involving space cooling, refrigeration, compressors, motors, drives, lighting, and energy management technologies could grow with the catalytic effect of the CREATE MORE law,” Ablaza said in a statement.
The alliance includes members such as Manila Electric Co., First Gen Energy Solutions, MServe, Mitsubishi Corp., Aboitiz Power Corp., and Shell Pilipinas.
Under the CREATE MORE law, companies undertaking energy efficiency projects can choose between two incentive packages to enhance project viability, Board of Investments (BOI) director Elyjean Portoza said.
The options include a 4–7-year income tax holiday (ITH) with a 10-year enhanced deduction rate (EDR) or a 14–17-year EDR. Portoza said the incentives are available to energy service companies (ESCOs) and third-party project developers (TPPDs) whose initiatives achieve at least 15% energy savings.
The updated policy is expected to support a wider range of energy-saving technologies, aligning with government goals to enhance sustainability and reduce consumption.
PE2 said the incentives could spur significant investments in energy efficiency, further solidifying the country’s position as a leader in sustainable energy practices in the region.
