With investment interests now pouring in, the Department of Energy (DoE) is seriously considering seeking legal opinion, to once and for all, clear up questions on foreign ownership of some renewable energy sources as set forth under the RE Law.

The lack of firm and credible legal opinion or jurisprudence that will put to rest the questions on the 60-40 percent ownership on constitutionally-declared State resources still prove unsettling to foreign investors, thus, the Philippine government is being pressed to take concrete action on the matter.

In an interview, Energy assistant secretary Mario Marasigan stated that “at the moment, we are reviewing our RE contracts recently signed and collating all issues that have risen in negotiating them.”

Given that the 60-40 ownership concern has been a recurrent issue raised by investors, he noted such and all other issues “may be referred to the DoJ (Department of Justice) for legal opinion.”

The same policy clarity as to legal interpretations is being batted for in other RE sources, such as wind, ocean, and solar resources.

He emphasized the DoE will take the lead in this exercise; and any result or opinion rendered will form part of the policy, including those currently being crafted by the National Renewable Energy Board.

In the RE Law, foreign investors are allowed to have 100-percent ownership on large-scale geothermal resource development; while for hydro resources, the 40-percent limitation is still being prescribed. That was in keeping with stipulations that water rights may only be granted to Filipino entities or corporations.

For all other identified RE sources, constitutional questions are still being raised with investor fears that once questioned in the Courts, the RE contracts awarded may eventually be nullified.

Given such developments, investors have been batting for the re-interpretation of these legal concerns in the RE law’s implementing rules and regulations.

The DoE has seen influx of investment interests in RE in the past months, but long-term viability of the policy has yet to be tested if it can truly stand as an alternative for the country.

As in the case of other jurisdictions, RE is still viewed as an expensive option. Nevertheless, the array of incentives provided under the law is seen initially underpinning goals to get the policy moving forward.