Lotilla: No need to amend Consti to fully open renewable energy projects to foreign players

There’s no need to amend the Constitution to allow foreign investors to fully participate in renewable energy projects in the Philippines, Energy Secretary Raphael Lotilla said on Friday.

Lotilla made the remark when Senator Robinhood Padilla asked the Department of Energy (DOE) if the Constitution needed changes to allow full foreign ownership in the renewable energy sector.

“If we wait for constitutional amendments, then, as you have experienced, it may take time and this has been attempted in previous congresses as well,” Lotilla said.

The Energy chief cited a recent Department of Justice (DOJ) opinion, saying that the 40% foreign ownership cap did not apply to renewable projects.

In its September 29 opinion, the Justice department said that Section 2, Article XII of the 1987 Constitution - pertaining to the exploration, development, and utilization of natural resources - only covered things susceptible to appropriation, thus excluding the sun, the wind and the ocean.

However, the DOJ told the DOE to first amend the implementing guidelines of Republic Act No. 9513 or the Renewable Energy Act of 2008 to increase the foreign ownership limit.

Under the IRR of the RA 9513, foreign developers can hold up to 40% interest in any renewable development.

Lotilla said that the DOE is preparing to amend the IRR of the RE law.

“If you recall, in the previous Congress, [Energy] Undersecretary Sharon Garin and the Senate were able to push for the opening up of the public utilities sans the amendment of the Constitution,” Lotilla said.

“I hope that you will continue to support our direction which is to push as much as possible through legislation with the support of Congress even without amending the constitution,” he added.

Data from the DOE as of June shows that the renewable energy arena has so far garnered P270.8 million in investments —solar at P130.4 million and wind at P52.9 million.

The DOE has also awarded a total of 998 renewable energy contracts with a combined installed capacity of 5,460.59 megawatts and a potential capacity of 61,613.81 MW.

The government is aiming to raise the share of renewables in the energy mix to 35% by 2030 and increase it further to 50% by 2040. —NB/KG, GMA News