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Manila to double renewable energy capacity with new law


MANILA, Philippines - The Philippines intends to double its renewable energy (RE) capacity in 10 years after the government approved rules covering the implementation of the Renewable Energy Act (Republic Act 9513). In a decade, Manila intends to produce 9,000 megawatts (mWs) of power, twice its current levels, Department of Energy Secretary Angelo T. Reyes said. The country is estimated to produce some 4,531 mWs from geothermal energy; 13,097 mWs from hydropower, 5.1 kilowatt hours per square meter a day from solar, 76,600 mWs from wind, and 170,000 mWs from oceanic waves. A renewable energy project may need an investment of about $1 million to $2 million per megawatt, according to latest estimates. A regular household is estimated to consume one megawatt of electricity for one year. The country may also attract as much as $10 billion in fresh investments with the approval of the law’s implementing rules and regulations (IRR), the energy department said. The agency is currently examining 15 projects, mostly undertaken by local groups with foreign partners, DOE director Mario Marasigan said. The projects cover wind, hydro, biomass, solar, and ocean projects, he added. Besides state-owned PNOC-Renewables Corp., companies interested in renewable energy projects include Lopez-led 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. Next: Law allows renewable energy firms to enjoy tax breaks Law allows renewable energy firms to enjoy tax breaks Under the RE act, investors are entitled to enjoy fiscal and non-fiscal perks, including income tax holidays of up to seven years, exemptions from value-added taxes as well as import taxes, reduced income tax payments as well as zero VAT rates for power sales. The law also intends to enable a renewable portfolio standard which will require local electricity distributors to secure a portion of their power from clean, homegrown renewable energy sources. The same law also creates the National Renewable Energy Board (NREB), an advisory body monitoring the energy department’s renewable energy action plans. Its members include a representative each from the DOE, the Department of Trade and Industry (DTI), Department of Finance (DOF), Department of Environment and Natural Resources (DENR), National Power Corporation (Napocor), National Transmission Corp. (Transco) or its successor, Philippine National Oil Company (PNOC) and the Philippine Electricity Market Corp. (PEMC). Private sector members include one representative each from RE developers, distribution utilities, electric cooperatives and electricity suppliers. Representatives from government financial institutions (GFIs) and non-governmental organizations will also be appointed as board members. For its part, the World Wide Fund for Nature (WWF-Philippines) said the RE law’s approved IRR is “a major milestone in our country's history and a clear manifestation of the DOE’s commitment in pushing for the promotion and mainstreaming of renewable energy." - GMANews.TV
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