The International Monetary Fund (IMF) has lauded the Philippine government’s initiative to reduce regulatory obstacles in investing in the renewable energy sector.

“I should give credit to the Philippine government. The Philippines decided to reduce regulatory obstacles for solar investments so that’s a very good thing,” IMF Managing Director Kristalina Georgieva said in an exclusive interview with the Philippine News Agency on Thursday.

Republic Act (RA) 11659, or the Public Service Act, now allows the “full” foreign ownership when it comes to renewable energy.

The Department of Energy also issued Circular 2022-11-0034 on Nov. 15, 2022, amending RA 9513, otherwise known as the Renewable Energy Act of 2008, to remove stipulations that mandate Filipino ownership of certain renewable energy resources.

The circular allows foreign investors to hold 100 percent equity in the exploration, development, and utilization of solar, wind, hydro, and ocean or tidal energy resources, to attract foreign investments to boost the country’s renewable energy sector and meet its long-term climate targets.

Amid the conflict in the Middle East, which led to the surge in fuel prices, Georgieva said the Philippines should take advantage of solar and other renewable energy to help the country be more resilient to shocks.

“Reduce reliance on imported oil by increasing rapidly what you have: sunshine, solar, renewable energy. It is cheap,” she said.

Georgieva also cited the need to accelerate investments in renewable energy.

“And I think the ambition has to be, to do more. Go faster. Make it so that renewables can connect to the grid, focus on the capacity of the grid to absorb it. Make sure that there is more attention to investing in solar,” she added. (PNA)