The Philippine Economic Zone Authority (PEZA) is banking on the government’s newly issued investment framework to drive renewable energy (RE) investments into the country’s ecozone system.

On the sidelines of the PhilEnergy expo, PEZA Director General Tereso Panga said the investment promotion agency has already paved the way for the implementation of RE projects worth nearly ₱100 billion.

To date, 21 RE projects registered for government incentives are operational, generating ₱97 billion in investments and creating over 1,300 jobs.

“We continue to see strong momentum in renewable energy and green investments in the Philippines, especially with their prioritization under the recently approved SIPP,” Panga said.

The SIPP, or the Strategic Investment Priority Plan, lists the economic activities that qualify for fiscal incentives under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.

As provided under CREATE MORE, these projects can enjoy tax perks for 14 to 27 years, depending on their location and industry priority tier.

RE projects—which cover the development of RE facilities and hybrid systems—are classified under Tier II, a category reserved for activities deemed critical to industrial development and import substitution.

Projects under Tier II may avail of a five- to seven-year income tax holiday, followed by up to 10 years of enhanced deductions or a special corporate income tax rate.

Panga noted, however, that policy alone is not enough to convince investors to establish RE projects in the country. He emphasized that the government must actively step in to ease the barriers to deploying new technologies.

“From our domain and sphere of influence, PEZA [is] steadfast in advancing policies and programs that promote sustainable industrial growth, expand renewable energy investments, and strengthen environmental stewardship across all ecozones,” he said.

In partnership with the International Finance Corporation (IFC) and the World Bank (WB), PEZA is working to transform its ecozones into integrated utility hubs that can support long-term growth.

Panga explained that a key component of this plan is developing embedded distributed power systems, which reduce energy costs by minimizing dependence on traditional transmission networks. By lowering power rates, the government can create a stronger incentive for investors—not just in RE, but across all industries—to set up operations in ecozones across the archipelago.

According to PEZA data, investment pledges from January to May nearly doubled to ₱124.84 billion, up from ₱66.34 billion during the same period last year. These investments cover 135 new and expansion projects, which are expected to generate up to $2.97 billion in export revenues.