The Renewable Energy Law or Republic Act (RA) 9153 should be primed for amendments by the Department of Energy (DOE) to allow full foreign equity in solar, wind, hydro, and other forms of renewable energy, Albay 2nd district Rep. Joey Salceda said.

“I urge Secretary Lotilla to release amendments to the Renewable Energy Law to allow full foreign ownership of renewable energy projects without undue delay. It is crucial for our fight to conserve foreign currency reseres and defend the peso, protect economic recovery, and make power cost cheaper in the country," Salceda said in a statement on Thursday, Oct. 20.

“It’s make or break. We need some USD 121 billion in investments into renewable energy to achieve a clean energy scenario by 2040. And we need significant surpluses of renewable energy supply to lower power costs and accelerate industrialization,” he emphasized.

About 74,000 megawatts (MW) in additional renewable energy capacity is needed in order to achieve clean energy and reduce dependence on oil due to its price volatility, Salceda said.

The House Ways and Means chairman has joined the call of the Foundation for Economic Freedom, which similarly urged the DOE to revise the implementing rules and regulations (IRR) of RA 9153 to better define the rules of foreign investments.

In Salceda’s eyes, the lifting of foreign investment caps will address a “self-imposed constraint EPIRA (Electric Power Industry Reform Act or RA 9136) Law limiting the investments local players can make towards renewable energy".

Under RA 9136, singular power sector entities can only hold 25 percent of the market share on the country’s national grid.

“Some players are already very near that threshold, since the power sector is severely concentrated in three players. Any further investments towards RE from these players will already break the law. So, until we amend that provision, with all its attendant risks, new foreign players will be the best alternative,” noted Salceda.