Green energy to create jobs, increase tax revenue

Over 20,000 to 50,000 “green” jobs will be created once the Renewable Energy Act of 2008 is implemented, a power company executive said over the weekend.

First Gen vice president Aloysius Santos said that the wind industry is expected to generate 5,000 to 6,000 jobs from 220 megawatts (MW) in wind projects. Lopez-owned First Gen is developing an 86 MW wind farm in Ilocos Norte.

“In developing renewable energy, (the country) will get sustainable, green jobs,” Santos said.

The National Renewable Energy Board (NREB) pointed out in its petition to the Energy Regulatory Commission that although renewable energy projects are typically small in scale, they will be able to help surrounding communities.

The ocean energy industry, for instance, “will bring considerable employment within the town of the contract site,” said NREB. The proposed ocean energy industry has an installation target until 2014 of 10 MW.

A robust renewable energy sector, the NREB added, would give training opportunities to the country’s technical workforce.

“Should the Philippines become the leader in renewable energy development in the Southeast Asian region in the medium-term, the country will be in a position to export its technical skills and expertise to its neighboring countries,” NREB said.

Green benefits

Aside from job creation, the different types of renewable energy technology are expected to result in several other benefits including the displacement of fossil fuels, tax contribution and the flow of direct investments.

The 250 MW target capacity for biomass energy in the next three years is expected to displace 969,000 barrels of oil or $96.9 million in fuel importation costs annually. Biomass energy will also generate P460 million annually in taxes or P9.5 billion over the next two decades.

Hydroelectric power projects will save the country 659,000 barrels of crude annually from its 250 MW target capacity, translating to $65.9 million in savings from oil importation. The industry will also contribute P520 million in taxes annually or P8 billion over the next 20 years.

Over 85,400 barrels of oil will be displaced by the 100 MW target generation for solar energy projects which will save $8.5 million annually. Taxes from solar projects are seen to contribute P201 million in taxes annually or up to P5.2 billion in 20 years.

Wind energy projects are seen replace 295,000 barrels of oil or $295 million annually from the 220 MW target capacities. The industry is seen to contribute P366 million in taxes annually.

Taxes from ocean energy investments are estimated to reach P120 million a year and displace 52,000 barrels of oil to save $5.2 million yearly.

NREB also asked the ERC for a feed-in tariff rate of P7 per kilowatt hour (kWh) for biomass energy, P17.65 kWh for ocean energy, P6.15 kWh for run-of-river hydro energy, P17.95 kWh for solar energy and P10.37 per kWh for wind energy projects.

The final impact of the tariff to consumers under the FIT-allowance is estimated to be P0.10 kWh, said Santos. – Bea Cupin/KBK, GMA News