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Philippine Economic Zone Authority has entered into a partnership with Upgrade Energy Philippines Inc. to develop solar energy projects inside economic zones
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Initially, UGEP will develop and implement 10-megawatt projects in each of the Cavite Economic Zone and Baguio City Economic Zone
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In an MOU signed with PEZA recently, UGEP will conduct feasibility studies in CEZ and BCEZ to determine the viability of the first phase projects before implementing them
The Philippine Economic Zone Authority (PEZA) and Upgrade Energy Philippines Inc. (UGEP) have agreed to develop ecozone solar energy projects under a recently signed memorandum of understanding.
For the first phase of the partnership, UGEP intends to develop and implement 10-megawatt projects in each of the Cavite Economic Zone (CEZ) and Baguio City Economic Zone (BCEZ), PEZA said in a statement.
Under the MOU, UGEP will conduct feasibility studies in CEZ and BCEZ to determine the viability of the first-phase projects before implementing them, PEZA said.
The MOU likewise allows UGEP to generate and sell solar power to end-consumers in the zones through designated distribution utilities.
For its part, PEZA will provide assistance needed by UGEP to conduct studies in identifying land areas within the zones that are suitable for the project.
PEZA will also help register solar photovoltaic panels for the projects under UGEP’s name pursuant to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law and the Renewable Energy Act of 2008.
“PEZA welcomes partnerships like this which promote the goal of environment-friendly industrialization,” said PEZA officer-in-charge and deputy director general for policy and planning, Tereso Panga.
“Promoting the use of renewable energy is extremely paramount to our country so we can save billions of pesos in energy and electricity consumption, generate more jobs and, at the same time, reduce our country’s share of carbon dioxide emissions, therefore, fighting the adverse effects of global climate change.”
Panga said these will also contribute to the country’s overall efforts to attaining its pledge to move ahead in cutting greenhouse gas emissions through localized climate change interventions and transition from coal to clean energy.
“Let us also do our part in implementing a collective approach to both revive the economy and at the same time protect our environment,” Panga said.
PEZA and UGEP’s partnership will remain in full force and effect for three years starting from the signing of the agreement.
Under the new Strategic Investments Priorities Plan (SIPP), renewable energy projects and activities are eligible for incentives under the Tier II Classification – Green Ecosystems.
Relative to this, Panga produced a foresight paper focusing on “New Frontiers in Ecozone Development: Aquamarine and Renewable Energy Parks.”
According to Panga, “this innovative and transformative ecozone model, which is a major departure from the conventional land-based ecozones for the past 50 years, aims to put the Philippines among the pioneering economies in the region that will venture into aqua-marine parks integrated with mariculture or marine farming, ocean energy/RE generation, hydrogen/oxygen production and marine eco-system regeneration.
“The creation of more water-based ecozones will likewise enable PEZA to achieve blue economy and complement the country’s quest for economic, inclusive and sustainable development.”
PEZA said these new frontiers aim to cater to niche industries and to promote emerging global economic zone models in the Philippines as the country moves forward to Industry 4.0.
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