1 Introduction: BoI’s Mandate in Renewable Energy Investment Promotion
The Board of Investments (BoI) serves as the Philippines’ primary investment promotion agency, playing a crucial role in advancing the country’s renewable energy agenda through strategic incentives and policy implementation. Operating under the Department of Trade and Industry, BoI is tasked with directing investments toward priority sectors that drive economic development while promoting sustainable practices. The energy sector, particularly renewable energy, has emerged as a top investment priority, with solar power taking a prominent position in the country’s transition toward cleaner energy sources. BoI’s mandate encompasses designing and implementing investment incentives through the Strategic Investment Priority Plan (SIPP), processing incentive applications, and actively promoting investment opportunities in renewable energy both domestically and internationally . These efforts align with national development goals and contribute to the Philippines’ commitments to reduce greenhouse gas emissions and increase renewable energy capacity.
The Philippines faces unique energy challenges as an archipelago with growing electricity demand, necessitating diversified energy sources and decentralized solutions. Solar energy presents a particularly valuable opportunity due to the country’s abundant tropical sunlight and the scalability of solar projects from large-scale solar farms to rooftop installations. Recognizing this potential, BoI has placed special emphasis on promoting solar energy investments through targeted incentives, investor facilitation, and regional development initiatives. These efforts have yielded significant results, with renewable energy investments reaching remarkable levels in recent years. According to BoI data, renewable energy accounted for approximately 76% (P2.58 trillion) of the total approved investments under the SIPP from June 2022 to December 2024, demonstrating the sector’s dominant position in the country’s investment landscape .
2 Strategic Investment Priority Plan: Renewable Energy Incentives Framework
The Strategic Investment Priority Plan (SIPP) serves as the cornerstone of BoI’s incentive framework, identifying economic activities eligible for investment incentives under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. Renewable energy projects feature prominently in the SIPP, benefiting from a tiered system of incentives designed to encourage both foreign and domestic investment in the sector. Tier 1 incentives include income tax holidays equivalent to 50% of capital investment for projects meeting specific energy efficiency standards, as demonstrated by Nakashin Davao International Inc.’s solar rooftop project which qualified for this benefit . Additional incentives may include enhanced deductions, duty exemptions on imported capital equipment, and value-added tax exemptions.
BoI’s incentive structure is carefully calibrated to support projects at different scales and development stages. For large-scale utility projects, incentives typically focus on reducing upfront costs through tax exemptions and accelerated depreciation schedules. For smaller-scale and rooftop solar installations, BoI emphasizes energy efficiency improvements and offers proportional benefits based on projected energy savings and environmental impact. This approach is evident in the approval of Nakashin Davao’s 519.2-kilowatt peak (kWp) solar photovoltaic rooftop system, which was registered under Tier 1 of the 2022 SIPP and is expected to yield annual energy savings of approximately 17.27 gigawatt-hours (GWh) while reducing carbon dioxide emissions by 137,000 tons . The project qualified for an income tax holiday equivalent to 50% of its capital investment under the CREATE Act provisions .
Table: BoI Renewable Energy Incentives Under CREATE Act
| Incentive Type | Description | Eligibility Conditions |
|---|---|---|
| Income Tax Holiday | Exemption from corporate income tax for a specified period | Tier 1 or Tier 2 projects in SIPP |
| Enhanced Deductions | Additional deductions for labor, research & development, etc. | Projects meeting specific employment or innovation criteria |
| Duty Exemption | Exemption from import duties on capital equipment, raw materials | Priority projects with imported inputs not available domestically |
| VAT Exemption | Exemption from value-added tax on imports and local purchases | Priority projects meeting investment thresholds |
| Tax Credit | Credit against taxes payable for taxes paid on inputs | Export-oriented projects meeting prescribed ratios |
3 Solar Energy Advancement: BoI’s Strategic Focus
Solar energy has emerged as a priority technology within BoI’s renewable energy promotion strategy, reflecting the technology’s declining costs, scalability, and alignment with the Philippines’ natural resource endowment. BoI’s approach to solar advancement encompasses multiple market segments, from utility-scale solar farms to commercial and industrial rooftop installations, each addressing different energy access challenges and investment profiles. For utility-scale projects, BoI has actively facilitated investment promotion for major solar developments, including the 76.65-megawatt Isabel Solar Project in Leyte and the 49.9-megawatt Libmanan Solar Project in Camarines Sur, which were presented to international investors at conferences in Spain .
For distributed solar applications, BoI has implemented specialized incentive structures that recognize the unique value proposition of rooftop and community-scale installations. The approval of Nakashin Davao’s solar rooftop project exemplifies this targeted approach, marking the country’s first renewable energy project eligible for energy efficiency incentives under Republic Act 11285, the Energy Efficiency and Conservation Act . This project registration entitles the company to an income tax holiday equivalent to 50% of its capital investment, making rooftop solar more financially viable for commercial and industrial applications. By supporting such projects, BoI aims to stimulate private sector investment in distributed generation, reducing strain on traditional grid infrastructure while enhancing energy security for businesses.
BoI’s solar promotion strategy also emphasizes technology transfer and capacity building, particularly through international partnerships and knowledge exchange. The agency’s participation in events like the 4th International Conference on Financing for Development in Seville, Spain, where Philippine solar projects were pitched alongside initiatives from Colombia, Costa Rica, Malawi, Pakistan, Paraguay, Papua New Guinea, Tanzania, and Ethiopia, demonstrates its commitment to positioning the Philippines as a competitive destination for solar investment . These efforts have contributed to renewable energy’s dominant share in approved investments, which reached P2.58 trillion between June 2022 and December 2024, representing 76% of all investments approved under the SIPP during this period .
4 Davao’s Renewable Energy Landscape: BoI’s Regional Implementation
BoI Davao has demonstrated exceptional leadership in implementing the national renewable energy mandate at the regional level, leveraging Mindanao’s unique energy profile and development opportunities. The Davao region possesses significant renewable energy potential, particularly in solar, hydro, and geothermal resources, which align with broader Mindanao energy development goals. BoI Davao has actively promoted investment in these sectors through targeted outreach, investor facilitation, and collaboration with local government units and industry associations. The region’s commitment to renewable energy development was highlighted through the upcoming 2025 Mindanao Energy Investment Forum, scheduled for August 13, 2025, at the Waterfront Insular Hotel in Davao City, with the theme “Collaborating for a Clean Energy Future: Advancing Mindanao’s Inclusive Energy Transition” .
The Nakashin Davao solar project exemplifies BoI Davao’s successful implementation of national renewable energy incentives at the regional level. This groundbreaking 519.2-kilowatt peak solar photovoltaic rooftop system, installed at Nakashin’s food production facility, represents not only a significant renewable energy installation but also the first project nationally to receive energy efficiency incentives under Republic Act 11285 . With an investment value of approximately P26 million ($460,000), the project demonstrates how BoI Davao has effectively translated national policy into tangible investment outcomes at the local level. The project’s anticipated environmental benefits—17.27 gigawatt-hours of annual energy savings and 137,000 tons of carbon dioxide emissions reduction—highlight the material impact of appropriately incentivized renewable energy investments .
BoI Davao has also played a crucial role in addressing regional energy challenges specific to Mindanao, including historical supply constraints and grid reliability issues. By promoting renewable energy investments, particularly solar and run-of-river hydro projects, BoI Davao contributes to enhancing Mindanao’s energy security through diversified generation sources and distributed energy infrastructure. The region’s approach aligns with the broader national strategy while addressing unique regional characteristics, including Mindanao’s growing agricultural processing sector and its corresponding energy needs. This context-specific implementation of renewable energy promotion represents a model for other regions seeking to leverage national incentives while addressing local development priorities.
5 Investment Promotion and International Engagement
BoI employs a multi-faceted approach to investment promotion, combining traditional outreach with sophisticated partnership building and aftercare services. The agency’s international engagement strategy includes participating in high-profile global forums, organizing investment missions, and conducting targeted presentations for potential investors. A prime example of this approach was BoI’s participation in the 4th International Conference on Financing for Development in Seville, Spain, where the agency showcased bankable solar projects to potential “impact-driven partners” . During this conference, BoI highlighted the 76.65-megawatt Isabel Solar Project in Leyte and the 49.9-megawatt Libmanan Solar Project in Camarines Sur, seeking equity funding and strategic partnerships for these developments.
The Libmanan Solar Project, proposed by Zenith Renewable Energy Corp. (ZREC), illustrates BoI’s sophisticated approach to structuring investment opportunities. With an estimated cost of $33 million, the project sought $28 million in equity funding in exchange for an 85% ownership stake, demonstrating BoI’s understanding of investor preferences for majority positions in infrastructure projects . Such carefully structured opportunities enhance the bankability of projects and reduce barriers to entry for international investors unfamiliar with the Philippine market. By presenting Philippine renewable energy projects alongside initiatives from other developing economies at international conferences, BoI positions the country within a global ecosystem of sustainable investment opportunities, leveraging comparative advantages while learning from international best practices.
BoI’s investment promotion efforts extend beyond project-specific advocacy to include broader policy dialogue and stakeholder engagement. The 2025 Mindanao Energy Investment Forum exemplifies this comprehensive approach, featuring presentations on energy transition strategy, policy updates, transmission planning, financing options, and private sector responses . By convening diverse stakeholders—including the Department of Energy, Energy Regulatory Commission, National Grid Corporation of the Philippines, financial institutions, and private sector representatives—BoI creates platforms for coordinated action and partnership development. This multifaceted approach to investment promotion has contributed significantly to the P3.38 trillion worth of investments approved under the SIPP from June 2022 to December 2024, with renewable energy accounting for the overwhelming majority (P2.58 trillion) of this total .
Table: Major Solar Projects Promoted by BoI
| Project Name | Capacity | Location | Estimated Cost | Investment Structure |
|---|---|---|---|---|
| Isabel Solar Project | 76.65 MW | Leyte | Not specified | Not specified |
| Libmanan Solar Project | 49.9 MW | Camarines Sur | $33 million | 85% equity stake sought ($28 million) |
| Nakashin Davao Solar Rooftop | 519.2 kWp | Davao | P26 million ($460,000) | Income tax holiday (50% of capital investment) |
6 Challenges and Future Directions in Renewable Energy Investment
Despite significant progress, BoI faces ongoing challenges in renewable energy investment promotion, including global competition for capital, evolving regulatory requirements, and infrastructure constraints. The global renewable energy investment landscape has become increasingly competitive, with multiple countries offering attractive incentive packages and streamlined approval processes. Additionally, the Philippines’ archipelagic geography presents unique transmission challenges for integrating large-scale renewable energy projects into national grids, particularly in more remote areas with high renewable potential. Mindanao’s energy infrastructure requires continued investment to accommodate variable renewable generation and ensure grid stability as renewable penetration increases.
Looking forward, BoI is positioned to address these challenges through strategic policy adjustments and enhanced investment facilitation. The extension of the CREATE MORE Act provisions provides opportunities to refine incentive structures based on implementation experience and emerging market needs. Specifically, BoI may consider enhancing incentives for energy storage technologies, hybrid renewable systems, and grid modernization projects that address integration challenges. The agency’s ongoing policy development work, including potential updates to the Strategic Investment Priority Plan, offers opportunities to address emerging technologies and evolving market conditions. Furthermore, BoI’s regional offices, including BoI Davao, will play crucial roles in identifying and addressing location-specific barriers to renewable energy investment.
The upcoming 2025 Mindanao Energy Investment Forum represents an important opportunity to address these challenges and plot future directions . By convening stakeholders around the theme of “Collaborating for a Clean Energy Future: Advancing Mindanao’s Inclusive Energy Transition,” the forum facilitates dialogue on strategic priorities and partnership opportunities. Topics including energy transition strategy, policy updates, transmission planning, and financing mechanisms will provide crucial context for investors and policymakers alike . Such forums complement BoI’s ongoing investment promotion activities while creating space for collaborative problem-solving around implementation challenges. Through these multifaceted efforts, BoI aims to build on recent successes in renewable energy investment attraction, particularly in the solar sector, while addressing persistent barriers to accelerated deployment.
7 Conclusion: Impact and Way Forward for BoI’s Renewable Energy Mandate
BoI’s renewable energy mandate has yielded substantial results in promoting investment, particularly in solar energy, as evidenced by the P2.58 trillion in renewable energy investments approved under the SIPP from June 2022 to December 2024 . The agency’s strategic combination of fiscal incentives, investment promotion, and regional implementation has positioned renewable energy as the dominant sector in the country’s investment landscape, accounting for approximately 76% of all investments approved under the SIPP during this period. BoI Davao’s efforts have contributed significantly to this success, particularly through the groundbreaking approval of the Nakashin solar rooftop project and the organization of the upcoming Mindanao Energy Investment Forum .
The strategic focus on solar energy has proven particularly impactful, addressing both utility-scale needs through projects like the Isabel and Libmanan solar farms and distributed generation through commercial and industrial rooftop installations . This diversified approach maximizes solar energy’s contribution to national energy security while creating multiple investment pathways for different types of investors. BoI’s international engagement efforts have successfully positioned the Philippines within global renewable energy investment networks, attracting impact-driven capital aligned with the country’s development objectives. The continued refinement of incentive structures under the CREATE Act and SIPP framework ensures that support mechanisms remain responsive to market dynamics and investor requirements.
Looking forward, BoI should continue enhancing its approach to renewable energy investment promotion by addressing emerging challenges and opportunities. Specific priorities may include developing more sophisticated incentive structures for energy storage and grid modernization technologies, enhancing regional implementation capacities through offices like BoI Davao, and deepening international partnerships through targeted engagement. The agency’s commitment to renewable energy investment promotion, exemplified by its successful track record and ambitious future plans, will play a crucial role in achieving the Philippines’ energy security, economic development, and climate objectives in the coming years. Through these efforts, BoI demonstrates how investment promotion agencies can serve as catalysts for sustainable energy transitions while advancing inclusive economic development across regions.
