DOE TO GLOBAL RE PLAYERS: COSTS A HURDLE IN SHIFT By Lenie Lectura @llectura
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HE Department of Energy (DOE) has raised a stumbling block in the country’s pursuit to a just and equitable shift to renewables. “While we are confident that RE [renewable energy] developers will be able to get financial closure for their projects, the next hurdle would be the price of RE such as floating solar, OSW [offshore wind], and WTE [waste-to-energy],” DOE Undersecretary Rowena Guevara said during the 15th Session of the International Renewable Energy Agency (IRENA) Assembly. Guevara underscored the critical importance of reducing capital
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costs for RE developers. “At the end of the day, in order for the energy transition to be just, we need to afford the electricity generated from renewable energy. But in order for that to happen, we hope our partners would be able to address the financing gap,” she said. The DOE, she said, has asked for assistance from the Central Bank and multilateral development banks to figure out concession financing, and even longer loan periods for pumped storage hydro, geothermal and the smart grid. “We are considering energy transition trading to connect our coal plant retirement with replacement RE power at affordable price,” she said. The IRENA Assembly, held under the theme “Accelerating the Re-
newable Energy Transition—The Way Forward,” brought together delegates from 170 member states, development banks, academia, and private sector leaders to tackle pressing challenges and assess progress in global energy goals. The discussions focused on tripling RE capacity by 2030, fostering innovation, and enhancing international collaboration to meet ambitious climate and sustainability targets. “We are confident that our RE developers have the technical ability to build plants. My hope in attending this general assembly is to learn more about how international cooperation can help us address the cost of RE to make sure that while we pursue sus-
tainable development, the socioeconomic aspect of sustainability is also addressed,” Guevara said. The country has set a target of 35-percent RE share in the generation mix by 2030 and 50 percent by 2050. To achieve this, 52.8 GW of new RE installed capacity is needed is in the next 20 years, with investment coming from the private sector. So far, the DOE has laid out policies advocating for the shift to RE. “We have allowed 100-percent foreign ownership of RE projects since November 2022. As a result, applications for service contracts have increased and we now have over 1,400 service contracts for over 150GW of RE,” Guevara said. See “DOE,” A2
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FACTORY SLUMP BLAMED ON Q4’S SERIAL STORMS T By Cai U. Ordinario @caiordinario
HE successive typhoons experienced by the country in the last quarter of 2024 also affected the manufacturing sector’s performance, according to Moody’s Analytics.
In its latest economic brief, Moody’s Analytics said the latest manufacturing data released by the Philippine Statistics Authority (PSA) showed the Volume of Production Index (VoPI) contracted 4.2 percent in November 2024. The PSA’s data showed the food manufacturing sector accounted for the highest weight in the index contracted 0.8 percent in November 2024. “While factory output data in the Philippines tend to be bumpy and subject to major revisions, this latest poor reading is a concern,” Moody’s Analytics said. “Six tropical storms from late October through November brought widespread flooding, which d amaged crops. T hese typhoons arrived after the typical peak season of July through October,” it added. The decline in food manufacturing in November 2024, PSA said, was the steepest decline posted by the sector since the 12.3-percent contraction posted in February 2024. The VoPI of the food manufacturing sector contracted 3.1 percent in November 2023 and posted a growth of 5.3 percent in October 2024. It may be noted that the typhoons in the last quarter of 2024 also caused the decline in jobs in November 2024. This was led by the Agriculture and forestry sector which saw a 1.99-million year on year See “Factory,” A2
OH MY GULAY! A vegetable vendor attends to a customer buying at a local food market in Cainta, Rizal. Some of the vegetables that saw price spikes like tomatoes are now back to normal prices, but several others remain pricey. Food inflation is a key concern of the government, and the Department of Agriculture and Department of Trade and Industry have set key interventions to keep prices of basic food items stable. BERNARD TESTA
AMID UNCERTAINTY, DISRUPTIONS, WHAT SECTORS ARE VITAL? By Andrea E. San Juan @andreasanjuan
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LOCAL think tank has identified critical minerals, advanced manufacturing and semiconductors, agriculture and food security as some of the 10 industries in the country that should be supported and developed amid the geopolitical uncertainty and global supply chain disruptions. “By recognizing and sup-
porting these 10 industries, the Philippines can adapt its economic policies to global trends while mitigating vulnerabilities,” a study by the Philippine Institute for Development Studies (PIDS) noted. Based on insights from key experts, the local think tank listed 10 industries in the Philippines which are considered “pivotal” to the Philippines’s future development. Topping the list is Advanced
Manufacturing and Semiconductors which, the study said, is experiencing “increased global demand due to advancements in artificial intelligence, 5G, and renewable energy systems.” According to the study, neighboring countries such as Malaysia and Vietnam have “successfully attracted” semiconductor investments and noted that the Philippines could achieve See “Amid,” A2
DOF renewing push in ’25 for a general tax amnesty By Reine Juvierre S. Alberto
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HE Department of Finance (DOF) is renewing its push for a general tax amnesty through new legislation to address fiscal gaps and improve tax transparency. Speaking to reporters on the sidelines of the SGV Tax Symposium last week, Revenue Operations Group Director Euvimil Niña R. Asuncion said the DOF is pushing for a general tax amnesty (GTA). The GTA bill is expected to be
introduced to Congress this year, according to Asuncion. Former President Rodrigo Duterte had vetoed a provision in Republic Act No. 11213 or the Tax Amnesty Act of 2019. The National Tax Research Center (NTRC) said the veto was due to the lack of provisions institutionalizing the automatic exchange of information and breaking down the walls of bank secrecy for tax fraud cases purposes. See “DOF,” A2
PESO EXCHANGE RATES n US 58.3460 n JAPAN 0.3699 n UK 71.1938 n HK 7.4933 n CHINA 7.9569 n SINGAPORE 42.5510 n AUSTRALIA 35.8478 n EU 59.7463 n KOREA 0.0396 n SAUDI ARABIA 15.5432 Source: BSP (January 13, 2025)