Because of the country’s archipelagic nature and physical characteristics, the rivers and streams in the Philippines have a high potential for hydropower projects that can be distributed throughout all the regions. As more and more local manufacturers rely on alternative power sources, there is an emerging opportunity for investments in the hydropower industry.
Key Players
Major active players already in the country include Aboitiz Power, FirstGen Hydro Power, and San Roque Power.
Key Statistics
2,360 mm
Annual average rainfall that can be generated into hydro power
Over 10,500 MW
Potential hydropower production of the Philippines
474
Awarded Hydropower projects throughout the country
2,950 MW
Hydropower supply to grid and off-grid areas in the country
Over 16%
Power contribution to the country’s national energy supply
US$ 2 million/MW
Average investment cost in starting a hydropower business
Over 13,440 MW
Target increase in hydropower capacity
Public-private partnerships
In order to establish strategic and long-term partnerships with the private sector, schemes such as Run-of-River Hydro help liberalize the approval of hydropower projects. Such initiatives highlight the Philippine industry’s advantages in comparison to neighboring countries.
Incentives
- Multi-year income tax holidays
- Reduced tax rate on gross income
- 0% duty on imports of equipment
- Tax credit on imports of raw materials and supplies
- Zero added tax for exports
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