Case Study Details - Playbook of Solutions - Electronic Linkage of Agencies for Permitting Processes

Challenges to investment

The Philippine Energy Plan 2020-2024 aimed to increase the share of renewable energy (RE) in the power generation mix from 22% to 35% by 2030 and to 50% by 2040. To achieve this target, the Philippines needed to plan, develop, approve, and complete many new RE generation projects. However, the lengthy permitting process was one of the greatest barriers to deploying RE in the Philippines.

Approach

On 8 March 2019, the President of the Philippines signed Republic Act 11234, known as the Energy Virtual One-Stop Shop (EVOSS) Act. This act aimed to streamline the permitting process for power generation, transmission, and distribution projects in the Philippines to attract more investments in RE. In particular, the online platform EVOSS facilitated paperless applications for permits for new power generation, transmission, or distribution projects. The platform allowed users to submit all documentary requirements, pay fees, and access a secure system for all agencies involved in the permitting process. The Department of Energy (DOE) supervised and managed EVOSS, while the EVOSS Steering Committee handled its operation and monitoring. Additionally, the act enforced a strict timeframe for all government agencies to respond to pending applications, and considered applications approved if they were not processed within the specified deadline.

Key Enabling Conditions

The development and technical support offered by the United States Agency for International Development's (USAID) Energy Secure Philippines program facilitated the integration of LGUs' energy permitting processes into the EVOSS system. In addition, the Philippines was recognized as one of the top five emerging markets to invest in the energy sector according to the BloombergNEF Climate 2023 report since platform's approach was innovative and received substantial coverage.

Impact / Outcomes

As of June 2024, EVOSS had facilitated 2,539 registered projects, 1,595 registered proponents, 923 in-progress applications, 6,314 processed applications, 132,621 MW of RE potential capacity, and 588 approved RE contract applications. These numbers included applications received by the Energy Regulatory Commission (ERC) after integrating its systems into EVOSS in December 2023. On 7 December 2023, the ERC conducted a dry run for integrating the capital expenditure (capex) application and its workflow into EVOSS. According to the ERC, the processing time for its quasi-judicial rulings will be reduced to 270 calendar days under EVOSS, down from more than a year previously. This integration is expected to speed up the distribution utility application processing time for capital expenditure projects. After completing this integration, the government plans to integrate more ERC processes and local government unit (LGU) permitting processes into EVOSS. Although not fully implemented, EVOSS had an 85% completion rate as of November 2023, based on DOE data. In preparation for EVOSS’s full rollout, the disbursement rate for the EVOSS Act increased to 89% in September 2023, up from 13% in 2022. On the other hand, the obligation rate (reflecting government liabilities) declined to 48% from 83% over the same period.

Additional Sources