The Board of Investments (BOI) has approved the application for registration of PAVI Green Renewable Energy, Inc. for its P2-billion new solar power project in Naga that will augment the energy supply of the Luzon grid, which is experiencing tight supply amid increasing demand.
The project was approved for tax incentives availment based on its listing under Tier I of the 2020 Investment Priorities Plan “Special Laws (Renewable Energy Act of 2008) of the 2022 Strategic Investment Priority Plan (SIPP). It is expected to start commercial operations in February 2024.
In addition, the project will contribute to the required capacity addition of 73,868 MW that is needed to meet the National Renewable Energy Program (NREP) target of 81,485 MW for the total installed capacity by 2040 under the Clean Energy Scenario (CES).
On the economic aspect, the project will generate 554 jobs during its construction and 21 jobs during its commercial operations. It will also use the latest technology in the market through the use of monocrystalline solar panels and string inverters.
With the full reopening and recovery of the domestic economy, demand for power in Luzon will continue to increase. In 2020, based on the data from the Department of Energy (DOE), Luzon contributed 67.9 percent share of the total installed capacity. Further, in terms of power generation and consumption, Luzon recorded 71.2 percent and 72.2 percent, respectively.
“As the Philippines is heading towards a greener and modern economy, projects like this one is consequential for the attainment of the economic goals of the country. Also, the solar power plant project of PAVI Green will play a crucial role in building up the capacity needed to sustain electricity demand in Luzon, ensuring an unhampered supply of power to consumers,” Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said.
The BOI, as the leader of the country’s Investment Promotion Agencies, has been pursuing a greener and more modern Philippine economy. As the world is now transitioning to a greener economy, the project will indicate the country’s objective of having green projects because it will release less greenhouse gas emissions into the atmosphere.
Known as the largest contributor to climate change, carbon dioxide is among the four greenhouse gases, which are emitted whenever coal, oil, natural gas, and other carbon-rich fossil fuels are burned.