Pasay City – The Philippine Economic Zone Authority (PEZA) has inked a Memorandum of Understanding (MOU) with the Upgrade Energy Philippines Inc. (UGEP) last 22 September 2022 at the PEZA Head Office for the development of solar energy projects within the economic zones.
For the first phase of the said partnership, UGEP intends to develop and implement the projects including 10 MW each at Cavite Economic Zone (CEZ) and Baguio City Economic Zone (BCEZ).
PEZA OIC Tereso Panga (left) and UGEP President and CEO Ms. Ruth Yu-Owen (right) signing the Memorandum of Understanding last September 22, 2022
Under the MOU, UGEP will conduct feasibility studies in CEZ and BCEZ to determine the viability of the first phase projects prior to its implementation.
The MOU likewise allows UGEP to generate and sell solar power to the end consumers in the zones through the designated distribution utilities inside the ecozones.
For its part, PEZA will provide the necessary assistance needed by UGEP for the conduct of the studies, in identification of the land areas within the zones suitable for the project, and in the registration of the Solar Photovoltaics (SPVs) under PEZA pursuant to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law and the Renewable Energy Act of 2008.
PEZA all-out-support for Sustainability & Renewable Energy
“PEZA welcomes partnerships like this which promote the goal of environment-friendly industrialization,” noted PEZA Officer-in-Charge and Deputy Director General for Policy and Planning Tereso Panga.
He said, “Promoting the use renewable energy are extremely paramount in our country so we can save billions of pesos in energy and electricity consumptions, generate more jobs and at the same time, reduce our country’s share of carbon emissions, therefore, fighting the adverse effects of the global climate change.”
“These efforts will also contribute to the country’s overall efforts to attaining our pledge to move ahead with urgency and cut greenhouse gas emissions through localized climate change interventions and transition from coal to clean energy. Let us also do our part in implementing a collective approach to both revive the economy and at the same time protect our environment,” Panga expressed.
PEZA and UGEP’s partnership will remain in full force and effect for three (3) years starting the signing of the agreement.
Renewable Energy as part of SIPP
Under the new Strategic Investments Priorities Plan (SIPP), Renewable Energy projects and activities are eligible for incentives under the Tier II Classification - Green Ecosystems.
Relative to this, the PEZA Interim Chief produced a foresight paper focusing on “New Frontiers in Ecozone Development: Aqua-Marine and Renewable Energy Parks”.
According to Panga, “This innovative and transformative ecozone model, which is a major departure from the conventional land-based ecozones for the past 50 years, aims to put the Philippines among the pioneering economies in the region that will venture into aqua-marine parks integrated with mariculture or marine farming, ocean energy/RE generation, hydrogen/oxygen production and marine eco-system regeneration. The creation of more water-based ecozones will likewise enable PEZA to achieve blue economy and complement the country’s quest for economic, inclusive and sustainable development.”
Employing futures thinking and policy process, these new frontiers aim to cater to niche industries and to promote emerging global economic zone models in the Philippines as the country move forward to Industry 4.0. #