DFDL Alert: Philippines Allows Full Foreign Equity Investment in Renewable Energy Projects

The Philippines’ Department of Energy amends renewable energy act, implementing rules and regulations to allow full foreign equity in renewable energy projects.


On 15 November 2022, the Secretary of the Department of Energy (“DOE”) signed DOE Department Circular (“DC”) No. 2022-11-0034 which amends the Implementing Rules and Regulations of Republic Act No. 9513 (otherwise known as the Renewable Energy Act of 2008). The amendment removes the nationality restrictions on the exploration, development, and utilization of renewable energy resources such as solar, wind, biomass, ocean or tidal energy.


This development follows the September 2022 Opinion of the Department of Justice that the exploration and development of solar, wind, hydro and ocean or tidal energy should NOT be subject to the forty percent (40%) foreign equity limitation under the Constitution. It must be noted, however, that the nationality restriction continues to apply to the exploration, development and utilization activities that appropriates water direct from a natural source, and geothermal resources (except those covered by financial or technical assistance agreements for large-scale exploration, development and utilization of geothermal resources).


DOE DC No. 2022-11-0034 is expected to be published by the fourth week of November 2022. It shall take effect fifteen (15) days upon its publication in two (2) newspapers of general publication and filing with the University of the Philippines Law Center – Office of the National Administrative Register.


For further information or assistance on this matter, please contact Cristina Suralvo, Partner, Ocampo & Suralvo Law Offices [email protected], www.ocamposuralvo.com