The Implementing Rules and Regulations (IRR) of the Philippine Renewable Energy Law (Republic Act 9513) was made public yesterday by the Department of Energy (DOE).
Under the law the Philippines has to double the energy derived from Renewable Energy Sources within 10 years. The DOE is hoping to attract about $10 billion in newer investments with the approval of the law’s implementing rules and regulations (IRR), the energy department said.
15 projects are currently being reviewed by the DOE, these RE projects are mostly undertaken by local groups with foreign partners, DOE director Mario Marasigan said.
The Philippine Renewable Energy Act was signed into law last December 2008, in it are incentives for investors who are going to undertake renewable energy projects in the Philippines.
During the formulation of the IRR, the DOE consulted with various interest groups such as: RE stakeholders, private sector investors, academe, non-government organizations, the business sector, funding insitutions. This was done via consultation meetings held in Zamboanga, Davao, Cagayan de Oro, Laoag, Baguio, Legaspi,Tagaytay, Iloilo, Cebu, Ormoc and Makati.
The Main benefits to be given to Renewable Energy developers are:
- Seven year income tax holiday
- Carbon credits generated from renewable energy sources will be free from taxes. A 10% corporate income tax, as against the regular 30%, is also provided once the income tax holiday expires.
- Energy self-sufficiency to 60% by 2010 from 56.6% in 2005, by tapping resources like solar, wind, hydropower, ocean and biomass energy
- Renewable energy facilities will also be given a 1.5% realty tax cap on original cost of equipment and facilities to produce renewable energy.
- The bill also prioritizes the purchase, grid connection and transmission of electricity generated by companies from renewable energy sources.
- Power generated from renewable energy sources will be value added tax-exempt.
- A net metering scheme will give capable consumers the option to generate their own power. Net metering will allow renewable energy producers to earn from the power they contribute to the grid, and are also charged for electricity drawn from the grid.
[source]Category: Law, Clean Energy