SunAsia Energy Inc. applied for tax incentives with the Board of Investments on its planned $1.7-billion floating solar power project in Laguna Lake.
The BOI said that once approved, the incentives would include 7-year income tax holiday; duty free importation of machinery, equipment and materials; 10-percent corporate income tax rate after the ITH period; accelerated depreciation; zero value added tax on the sale of fuel or power generated; cash incentive for missionary electrification; tax exemption on carbon credit; and tax credit on domestic capital equipment and services.
It said SunAsia’s solar power project is the first strategic investment under Executive Order No. 18 or the Green Lanes for Strategic Investments policy.
“This underscores the seriousness of the government in helping investors realize their investments by removing the barriers to the entry of strategic investments. Rest assured of the whole-of-government support for this strategic investment which positively impacts our economy not only in terms of investments but more importantly on the jobs to be generated,” said BOI director for investment assistance service Ernesto Delos Reyes Jr.
He said the company was still completing the documentary requirements needed for registration.
Having a green lane status will speed up and streamline the procedure and requirements for the issuance of permits and licenses, including resolutions of issues concerning strategic investments.
Aside from SunAsia Energy, ACEN Renewable Energy Solutions, the power subsidiary of the Ayala Group, is also building similar floating solar projects.
Both companies are committed to providing clean and sustainable energy for consumers with combined capacities of 2.3 gigawatts of renewable energy.
SunAsia will integrate 10 floating solar projects on the Laguna Lake that would generate 1.3 GW of power, while ACEN would produce 1 GW.
Laguna Lake Development Authority general-manager Senando Santiago said the LLDA board identified several pre-determined areas in Laguna Lake for RE development with a total area of 2,000 or about 2 percent of Laguna Lake’s total surface areas and recently awarded the contracts to RE developers though public bidding.
Laguna Lake is the largest freshwater lake in the Philippines spanning 90,000 hectares. The first allocation of 2,000 hectares for solar energy will redound to huge economic benefits, it said.
SunAsia is set to start the construction phase in 2025 and commercially operate by 2026. Once completed, the project will increase the share of renewable energy in the total energy mix in the Philippines and displace fuel usage by about 1 million tons of carbon credits.
SunAsia expects the Department of Energy to set higher installation capacities for floating solar by November 2023 to comply with government’s ambitious decarbonization goal by 2050.