The Department of Justice opinion that allows foreigners full ownership of renewable energy projects in the Philippines has been welcomed by business groups as it is expected improve overall business sentiments and lure more investments into the country.
In a legal opinion dated September 29, the DOJ said Section 2, Article XII of the 1987 Constitution “only covers things that are susceptible to appropriation, thus excluding the sun, the win, and the ocean.” It said the phrase “all forces of potential energy” in the Constitution excluded “kinetic energy,” referring to the type of energy sources such as solar, wind, hydro and ocean or tidal energy.
“Moreover, the intent of the constitutional foreign ownership restriction was to preserve for Filipinos limited and exhaustible resources,” the DOJ added.
According to Henry Schumacher, president of the European Innovation, Technology and Science Center Foundation, Inc., the Philippines stands out in terms of its solar and wind energy potential. Philippine Chamber of Commerce and Industry president George Barcelon also highlighted the country’s vast resources in hydro and geothermal.
While the DOJ may have opened the door for more foreign investment in renewable energy in the country, government must also remember to continue prioritizing the local firms that have shown the interest, funding and capability to develop such projects in a country that still needs at least $121 billion in investments to achieve its clean energy goal.
Finding the right mix of local and foreign investors will be key to hitting that goal while at the same time growing the local energy sector in the cleanest and greenest manner possible so it benefits both the country and the planet as we embark to face this monumental challenge that has been hounding the country for decades.*
