Renewable energy law comes into force
Dec 17 - McClatchy-Tribune Regional News - Euan Paulo C. Anonuevo The
Manila Times, Philippines
The President said the new legislation is the "first and most comprehensive
renewable energy law in Southeast Asia" that would enable the Philippines to
capture a part of the soaring investments in renewable energy development
worldwide pegged at $71 billion last year.
"With our Renewable Energy Act, we can now move aggressively to develop
these resources," she added, referring to solar, biomass, geothermal,
hydropower, wind and ocean-energy technologies.
"The benefits of renewable-energy use are considerable," Energy Secretary
Angelo Reyes said also Tuesday. "It will foster sustainable growth, energy
independence and economic security for the country, and unite us with the
global effort to stop climate change."
The new law--Republic Act 9513--provides fiscal and non-fiscal incentives
for renewable energy investors, including tax credits on domestic capital
equipment and services, special realty tax rates on equipment and machinery,
tax exemption of carbon credits, duty-free importation mechanisms, and
income tax holidays, among others.
The law also provides for the establishment of a Renewable Portfolio
Standard system, which would require electricity suppliers to source a
certain amount of their energy supply from renewable resources such as wind,
solar, hydro, geothermal and biomass.
The standard would also be complemented by a feed-in tariff system to
encourage the speedy entry of renewable energy projects.
At present, the country is heavily reliant coal power plants, which are said
to be one of the main sources of greenhouse gas emissions, for bulk of its
electricity needs.
"This measure will ultimately ensure a market for renewable energy, and
provide a system that will allow consumers to choose green sources of energy
in the long term," Reyes said.
Pieces in place
Industry officials said that with such incentives and perks now present, the
development of the country's renewable energy sources, which have long been
hampered by huge investment costs and intermittent power generation, would
finally have the support that it needs.
The passage of the bill is also seen to help accelerate the Energy
department's target for renewable energy sources especially at a time when
the country's demand for power is narrowing the gap with supply.
Under the Department of Energy's medium-term Renewable Energy Policy
Framework, the government aims to develop more than 4,000 megawatts of
additional renewable energy capacity, some 1,200 megawatts of which are
planned to come from geothermal sources.
"While renewable energy development has been slow in the past years, the
passage of the bill is expected to attract more investors to the industry,
and help cement plans of investors who had been waiting for the bill's
approval," Reyes said.
New era
Catherine Maceda, Renewable Energy Coalition spokesman, said, "The Renewable
Energy Law is expected to usher in an era of cleaner energy use in the
country that will benefit generations to come."
The coalition, a multisectoral group that had been campaigning for the
passage of the bill, projected that the country could save up to $1.23
billion with the development of some 4,000 megawatts of electricity from
renewable energy resources.
"This amount can be directed to fund other development needs of the
country," Maceda said.
Welcome development
Greenpeace Southeast Asia Executive Director Von Hernandez welcomed the
development, saying the Philippines is on track toward achieving an energy
revolution that is key to addressing climate change.
"This signals that the Philippines is on track toward achieving an 'Energy
Revolution' which can end our dependence on fossil fuels and move the
country into a low carbon emissions economy which is a key solution to the
problem of dangerous climate change," he added
In August, Greenpeace released the report entitled, Energy Revolution: A
sustainable Philippine Energy Outlook, the first-ever comprehensive energy
strategy drawn up for the Philippine setting which shows how renewable
energy can become the country's energy backbone.
The report said renewable energy could provide more than half of the
country's energy needs by 2030. It added that the Philippines could save as
much as 40 percent, or $9.6 billion, in electricity cost in 2050 by using
renewable energy.
The report recommends phasing out all subsidies for fossil fuels, stopping
plans to construct nuclear power plants, putting a moratorium on the
construction of new coal-fired power plants, and abandoning the myth of
"clean coal" and nuclear power as solutions to climate change.
-- With Ira Karen Apanay
Copyright © 2008The
McClatchy Company
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