The government expects to double the country’s renewable energy capacity in the coming decade with the signing of the implementing rules and regulations of the Renewable Energy Law.
In a press conference on Monday, Energy Secretary Angelo Reyes said the government plans to hike the share of renewable energy sources in power generation from 4,500 megawatts to 9,000 megawatts in 10 years.
“That is our objective. To double the power being generated from renewable energy sources,” he said.
The country’s current installed generating capacity is about 15,000 megawatts, the bulk of which comprise conventional power plants.
Despite this, the energy secretary said that the influx of interest from investors in the renewable energy sector would help the government achieve its target of attaining energy independence and security through “green” energy sources.
“Investors are aggressively coming in as they see the potential of renewable energy development in the country,” he said.
This was brought about by the passage of the Renewable Energy Act of 2008, which provides incentives -both fiscal and non fiscal- to proponents of such projects.
Among these incentives are seven-year income tax holidays (ITH) for developers, exemption from value-added tax (VAT) and duty-free importation of equipment and machinery, reduction of corporate income tax after the expiry of the ITH to 10 percent of net income as well as a zero percent VAT rate for the sale of power from RE.
In addition, incentives will apply to all renewable energy projects -whether existing or new ones.
Reyes signed the implementing rules and regulations of the said law Monday.
Mario Marasigan, Department of Energy utilization and energy management bureau director, said that investments in the sector could reach as high as $9 billion taking into account government’s 10-year target alone.
The Philippines has an untapped potential of 200,000 megawatts from renewable energy, energy officials said.
Marasigan said the DOE is pre-qualifying some 15 projects from local groups with foreign partners.
He said the local power firms have also been actively looking at potential investments in RE development.
Among the companies that have already expressed interests in renewable energy projects are Philippine National Oil Co.-Renewables Corp., First Gen Corp., Aboitiz Power Corp., Trans-Asia Power, Energy Development Corp., Suweco, Constellation Corp., Oriental Energy, Green Power Philippines, Deep Ocean Philippines, Norasian Corp., and Philcarbon. –Euan Paulo C. Añonuevo, Manila Times
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