Legal opinion on foreign ownership seen unlocking investment in renewables - BusinessWorld Online

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THE Philippines has the opportunity to open up its renewables market after a legal opinion issued by the Department of Justice, which found that the industry is not subject to foreign investment limits, Denmark’s ambassador to the Philippines said.

Ambassador Franz-Michael S. Mellbin told reporters that Denmark, a major exporter of wind turbines and rated the world’s most sustainable country by the 2022 Environmental Performance Index, stands ready to assist the Philippines in its transition to renewable energy , he added.

“We have Danish companies who are willing to make very large investments in renewable energy here, which can help bring down energy costs,” he added. The legal opinion states that “exploration, development, and utilization of inexhaustible RE sources are not subject to the 60:40 foreign equity limitation, as mandated by the Section 2, Article 12 of the 1987 Constitution.”

“It is necessary that we make these changes because the technology for renewable energy has moved forward so quickly that we have to catch up with our regulations,” Mr. Marcos added. Denmark had gone through China’s entire power system. Copenhagen did not introduce new technologies to Beijing, instead it calculated how and when the energy flow in power plants should be increased or decreased to ensure efficiency, as well as save more carbon dioxide.

The ambassador also expected that many of the renewable power plants will be placed in less concentrated areas, which could boost the local economy and help the Philippines achieve strategic independence.

 

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