DTI Approves of Collaboration with Brunei Companies to Increase Renewable Energy in the Philippines

President Ferdinand R. Marcos Jr.’s bid to collaborate with top  oil and gas companies in Brunei to boost the renewable energy sector in the Philippines is supported by the Department of Trade and Industry (DTI).

Among the supporters of the president’s investment appeal is DTI Secretary Fred Pascual in a meeting with Shell Petroleum (BSP), Brunei LNG (BLNG), TotalEnergies Brunei, Serikandi Oilfield Services, and Adinin Group of Companies that occurred during the presidential visit to Brunei Darussalam, May 29, 2024.

Secretary Pascual says, “Our country holds tremendous potential for clean energy, with abundant solar, wind, and tidal resources waiting to be harnessed. Brunei’s proven track record in energy projects positions you as a key partner in unlocking this potential. With this, we look forward to the partnerships that this meeting will forge as both of our countries take the lead in Southeast Asia’s clean energy future.

The Philippines recognizes Brunei’s extensive experience in the oil and gas industry, as well as its recent efforts to diversify its energy mix through renewable energy, as outlined in Brunei Vision 2035. Brunei’s oil and gas companies with their long history of success in the sector are uniquely positioned to contribute valuable knowledge and experience to the Philippines’ renewable energy development.

The Philippines aims to emulate Brunei’s initiatives to diversify its energy sources with renewable energy, emulating its illustrious performance in the oil and gas industry, 

In return, the Philippines can offer Brunei an attractive opportunity for investment in its prevalent natural sources of solar, wind and tidal energy. The country has amassed the fastest economic growth in Southeast Asia last year, with an increase of 5.6%.

Both countries sought opportunities for collaboration, with Brunei gunning for investment opportunities and the Philippines eager to learn from Brunei’s experience in renewable energy. 

The discussion included crucial aspects that inform Brunei’s investment decisions to allow the Philippines to optimize its investment bids.

The Renewable Energy Act of 2008 was among the policies implemented by the DTI towards the goal of seeking renewable energy investment. The regulation slackens foreign equity restrictions for these projects.

The Green Lanes Initiative is another program that eases approvals and provides incentives to promote renewable energy investment.

Furthermore, the passing of the Public-Private Partnership Code expedited investments in the Philippines by strengthening collaboration between the public and private sectors. This results in faster infrastructure development which speeds up economic expansion.

Finally, the 2022 Strategic Investment Priority Plan puts agriculture, fishery, forestry and renewable energy first. Prioritizing these sectors gives them the lion’s share of investment opportunities through incentives. This operates under the Corporate Recovery and Tax Incentives for Enterprises Act which stipulates tax breaks for up to 17 years and government support for up to 40 years.

The trade chief says, “The Philippines is taking a big step forward with the creation of these initiatives. By streamlining the investment process, prioritizing key sectors, and offering attractive incentives, we are sending a clear message: The Philippines is open for business and committed to sustainable economic growth. We look forward to a successful partnership with Brunei’s energy leaders,” 

Source: DTI supports PH’s push for renewable energy cooperation with Brunei oil and gas firms