Philippines Renewable Energy Bill Passed!

The energy committee of the House of Representatives on Wednesday lauded the swift passage of a common version by Congress on the Renewable Energy bill that is expected to help the country's energy security, yield huge economic benefits, and boost effort to safeguard the environment.

Second District Pampanga Rep. Mikey Arroyo, chairman of the committee
on energy, said the approval by the bicameral conference committee of a common version on House Bill no. 4193, which he co-sponsored, together with Camarines Sur Rep. Luis Villafuerte, and Senate Bill no. 2046, should hopefully pave the way for a similarly swift approval anytime this week by the House plenary of the final version of the proposed Renewable Energy Act of 2008.

He said the joint Congressional approval "was a landmark achievement, considering that it had taken more than 20 years or since the 8th Congress for such a measure to be approved."

"We are justly proud of this landmark measure's passage, as it demonstrates the political will of this Congress to set aside politics and work as one in helping solve the problems besetting our nation," he said.

Arroyo said that aside from a "basket" of fiscal and other financial incentives to encourage investors to go into renewable energy development, the proposed measure also directs the Department of Energy (DoE), National Power Corporation (Napocor), and other government agencies to develop and institute a framework for propagating renewable energy and seamlessly interconnecting these sources into the national power grid.

He said the bill would also help the government achieve its goal to boost the country's energy self-sufficiency from 56.6 percent in 2005 to the desired level of 60 percent by 2010.

This can be achieved by tapping renewable energy resources like solar, wind, hydro-power, ocean and biomass energy, he said.

Based on the DoE projection, if renewable energy sources can supply an additional 2,500 megawatts (MW) of total power supply in the next 10 years, then the country could stand to gain some US$ 1.2 billion in energy savings over the same period.

Arroyo said the bicameral conference committee agreed to use the Senate version as the working draft of the reconciled measure, and incorporate the salient provisions of the House version with some minor amendments.

In the reconciled bill, carbon credits generated from renewable energy projects will also be exempted from all taxes.

A 10 percent corporate income tax versus the regular 30 percent, is also provided once the income tax holiday expires.

Renewable energy facilities are also given a 1.5 percent 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 wind, solar, ocean, run-of-river hydro-power and biomass resources.

For consumers, electricity generated from renewable energy sources will be free from value-added tax (VAT). A net metering scheme will also ensue, giving capable consumers the option to generate their own power, which, in turn, will give them the possibility of being paid by their power distributor or given discounts for the power they give back to the grid, the Pampanga solon said.

Arroyo explained that net metering uses a special electricity meter so that renewable energy producers earn money from the power they contribute to the grid, and are also charged for electricity that they draw from the power grid. (PNA)

Greenpeace Statement:
On the approval by the Bicameral Conference Committee of the Renewable
Energy Bill yesterday, 7 October 2008, Greenpeace Southeast Asia
executive Director, Von Hernandez said:

Greenpeace congratulates the Philippine Senate and the House of
Representatives for finally coming together in moving the country a step
closer in legislating a much-needed energy revolution. We expect
malacanang to sign the Renewable Energy bill into law very soon.

"Once enacted, this landmark legislation is expected not only to end our
dependence on climate changing fossil fuels, but also help propel the
Philippines towards a low carbon path of economic prosperity and
genuine sustainable development. Through this law, we hope to see less
and less development of dirty coal power plants and more investments in
clean, renewable energy systems.

Greenpeace's Philippine Energy Revolution scenario, has calculated that
it is possible for the country to generate as much as 70% of its
electricity needs from renewable energy by 2050 with wind, biomass,
geothermal and solar energy contributing 58% of its capacity.

"We now call on President Gloria Macapagal-Arroyo to immediately sign
the bill into law and ensure that the law's Implementing Rules and
Regulations (IRR) to be developed by the Department of Energy and other
affiliated agencies, do not, in any way, weaken the spirit and intent
of the law."