DOE to delegate approval for hydrogen projects below ₱15 billion
The Department of Energy (DOE) is moving to decentralize the approval process for hydrogen investments, handing more authority to investment promotion agencies (IPAs) to speed up the rollout of the emerging technology.
Under a draft circular released by the DOE, the Board of Investments (BOI) and other promotion bodies will have the power to approve and oversee hydrogen projects with an investment value of less than ₱15 billion.
The shift is part of a broader push to streamline the administrative hurdles facing clean energy developers and align the sector with the recently enacted CREATE MORE Act, also known as Republic Act 12066.
Projects exceeding the ₱15 billion threshold will remain under the purview of the Fiscal Incentives Review Board (FIRB), which will handle the assessment and final approval for larger-scale developments.
The DOE noted that hydrogen projects tied specifically to renewable energy will stay under the primary jurisdiction of the BOI, unless otherwise mandated by future laws or executive directives.
By empowering the BOI and other IPAs to administer both fiscal and non-fiscal incentives, the government aims to create a more responsive environment for capital. These agencies will manage the evaluation and certification processes to ensure that hydrogen ventures meet the strict requirements for tax advantages provided under the CREATE MORE regime, which was designed to enhance the ease of doing business in the Philippines.
The DOE’s proposed amendments also refine the criteria for what constitutes a hydrogen energy project. To qualify for incentives under the Energy Efficiency and Conservation Act, a project must demonstrate an ability to reduce overall energy consumption or implement fuel substitution that results in higher operational efficiency.
Furthermore, projects that integrate hydrogen production with renewable energy sources or nuclear systems will be categorized as energy efficiency initiatives. This classification allows developers to tap into specific perks reserved for high-efficiency technologies, though the BOI will maintain a final layer of evaluation to verify these claims.
To support the technical side of the industry’s growth, the department is also forming a hydrogen technical committee. This body will be responsible for crafting industry standards and ensuring that local regulations keep pace with global technological advancements.
The DOE indicated that the committee will emphasize broader stakeholder representation to ensure that the private sector and technical experts have a voice in the regulatory framework. The new rules are set to take effect following their formal publication.