DOE to resolve LGU delays in approving power projects

MANILA, Philippines — The Department of Energy (DOE) is ramping up efforts to expedite the permitting process for energy projects, as investors grapple with persistent delays at the local government level.

Through a series of consultations with local government units (LGUs), the DOE wants to come up with a standardized energy infrastructure ordinance template to simplify approval procedures and reduce delays.

“One of the most common bottlenecks in energy project development is the varying timelines for the issuance of permits like LGU resolutions of support, which often lead to significant delays,” it said.

The proposed framework is envisioned to provide a definite and transparent timeline for the issuance of resolutions in an effort to ensure a more predictable and transparent approval process.

LGUs are likewise compelled to prioritize the simultaneous processing of applications for strategic energy investments, issue provisional permits and display rates of fees and charges.

“By working closely with LGUs, we enhance regulatory transparency, improve coordination and streamline approval processes,” said Energy Undersecretary Sharon Garin, who leads the initiative.

“These efforts not only facilitate faster project implementation but also reinforce the government’s commitment to strengthening the country’s energy infrastructure and advancing sustainability initiatives,” Garin added.

To attract more funding in the energy sector, the DOE grants national significance certifications to energy projects with a capital investment of at least P3.5 billion, aiming to expedite licensing and permit processing.

Similarly, the Board of Investments (BOI) also awards green lane certificates to high-impact projects to ensure swift realization of the investment.

However, these certifications seem ineffective when confronted with local government barriers.

A top executive from a renewable energy company told The STAR that investors often get “turned off” by the myriad permits needed for projects to progress.

“There’s an impression that once you receive (green lane and national significance tags), you gain cooperation from all levels of government. That’s not true,” said the source, who asked to remain anonymous due to the sensitive nature of the issue.

“They’re not going to give you outright endorsements simply because the BOI gave you a green lane certificate,” the executive lamented.

While acknowledging the LGUs’ mandate to scrutinize projects, the source highlighted the need for consistency in policy enforcement.

As such, the source said there must be “better coordination” between the DOE and the Department of the Interior and Local Government, which oversees the LGUs.

From May to December 2024, the DOE issued national significance certifications to 149 power generation and transmission projects with a total capital investment of P2.4 trillion.

The BOI, on the other hand, endorsed 176 projects worth P4.54 trillion last year for green lane treatment.