(Bloomberg) -- The Philippines will temporarily halt processing of new applications for renewable energy projects after it revamps rules amid a flood of contracts as the government pushes green power.

The Department of Energy will not review applications for five months from June 25 while it enhances a one-stop shop system with the implementation of the new guidelines from that date, it said in a statement on Friday.

The Southeast Asian nation currently has 1,300 renewable energy service contracts, equivalent to 62 gigawatts of potential capacity, Energy Undersecretary Sharon Garin said in a briefing.

“That’s more than enough to cover our needs in the future to reach the 35% and 50% targets of the government,” Garin said, referring to the share of green energy in the country’s power mix by 2030 and 2040, respectively. Renewable energy made up 22% of the nation’s energy mix in 2022, based on latest available government data.

“The Philippines is awash with RE investments,” she said.

Manila has one of the most ambitious targets in the region in terms of boosting the share of green energy in its electricity supply that’s currently dominated by coal. President Ferdinand Marcos Jr. said last month that the country has nearly 500,000 megawatts of power potential from sources like solar, wind, hydro and geothermal.

The rule changes would allow the agency “to filter the serious and legitimate companies” determined to construct their projects on time, Garin said.

Under the new guidelines, the energy department will allow developers to start permit processing, conduct survey and other feasibility activities before their 25-year contract begins. Previously, such activities were permitted only after the contract is approved and signed by the energy secretary, the agency said.

The agency also said it has streamlined the process for duty-free importation incentives. The guidelines will enable developers to apply for additional contracts and potentially enjoy extended contract terms and incentives for investments to increase capacity, it added.

“The applications are more stringent but the allowances in order for them to finish and expand their projects are more generous for legitimate and serious investors,” Garin said.

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