THE RENEWABLE ENERGY ACT of 2008 (R. A. No. 9513) IMPLEMENTATION
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1 THE RENEWABLE ENERGY ACT of 2008 (R. A. No. 9513) IMPLEMENTATION 1 st EU-PHILIPPINES MEETING ON ENERGY Sharing Experiences on Renewable Energy Promotion February 27, 2012 Ruby B. de Guzman Renewable Energy Management Bureau
2 Presentation Outline I. Previous Laws and Issuances on RE II. Landmark Laws on RE Biofuels Act of 2006 Renewable Energy Act of 2008 III. Policy Implementation and Mechanisms IV. Status of RE Projects V. The Way Forward
3 Previous Laws and Issuances on RE Biofuels Memorandum Circular No. 55 Geothermal Presidential Decree No Mini-Hydro Republic Act No Ocean, Solar, Wind Executive Order No. 462 as amended by EO 232
4 Landmark Laws Republic Act No Biofuels Act of 2006 Republic Act No Renewable Energy Act of
5 RA 9367: Biofuels Act of 2006 Provides fiscal incentives and mandate the use of biofuelblended gasoline and diesel BIODIESEL 2% biodiesel blend on Feb. 6, 2009 in all gasoline stations nationwide 2010 consumption of 125 million liters BIOETHANOL Start of 5% by total volume on Feb. 6, % bioethanol blend to all gasoline on Feb. 6,
6 RA 9513: Renewable Energy Act of 2008 Accelerate the development of the country s renewable energy resources by providing fiscal and non-fiscal incentives to private sector investors and equipment manufacturers/fabricators/suppliers 6
7 Policies under RA 9513 Accelerate the exploration and development of renewable energy resources achieve energy self-reliance to reduce the country s dependence on fossil fuels minimize the country s exposure to price fluctuations adoption of clean energy to mitigate climate change promote socio-economic development in rural areas Increase the utilization of renewable energy by providing fiscal and non-fiscal incentives 7
8 Policy Implementation Establishment of the Renewable Energy Management Bureau DOE s lead unit in the implementation of the Acts Operationalized on 14 July 2009 Creation of the Interim Negotiating Panel for RE Service/Operating Contracts on 09 September 2009 Creation of the National Renewable Energy Board Created Sub-committees and working groups to facilitate the formulation of mechanisms, rules and guidelines on the ffg: RPS, FIT, Net Metering, Green Energy Option and RE Trust Fund Creation of the National Biofuel Board Formulated the National Biofuel Program Promulgated the JAO providing guidelines for the production, transportation, storage and handling of biofuels in the country 8
9 Policy Mechanisms Lowering of investment costs Fiscal Incentives Income Tax Holiday and Low Income Tax Rate Reduced Government Share Duty-free Importation of Equipment and VAT-zero Rating Tax Credit on Domestic Capital Equipment Special Realty Tax Rate on Equipment and Machinery Cash Incentive for Missionary Equipment Exemption from Universal Charge Payment of Transmission Charges Tax Exemption on Carbon Credits 9
10 Policy Mechanisms Enhanced Competitiveness Mandatory Utilization of RE Resources Biofuels Mandate Renewable Portfolio Standard (RPS) Feed-In-Tariff Other Market Options Net Metering Concept Green Energy Option 10
11 Where are we now? RE Resources PD 1442 / RA 7156 / EO 462 / MC 55 No. of Companies No. of Projects RA 9367 / RA 9513 No. of Companies No. of Projects Hydro Power Ocean Energy Geothermal Wind Solar Biomass Biofuels Total
12 PENDING CONTRACTS The Way Forward RESOURCE No. of Contracts Under Pre-Dev. Under Dev. Existing Hydro Power Ocean Energy Geothermal Wind Solar Biomass Total PENDING OWN-USE REGISTRATION RESOURCE No. of Contracts Under Pre-Dev. Under Dev. Existing Biomass Solar Total
13 The Way Forward Setting of Renewable Portfolio Standard (RPS) and Feed-In-Tariff (FIT) Formulation of Guidelines on other RE Policy Mechanisms (Net Metering, Green Energy Option, etc.) Establish Energy Investment Coordinating Center and Linkages with other Government Regulatory Agencies NEDA PPP One Stop Shop (DTI / BOI / DOF / BIR, BOC DENR / EMB, FMB, LMB, NSWMC NWRB / NCIP Resource Inventory and Establishment of RE Database Capacity Building / Information, Education and Communication Campaigns Investment Missions / Business Meetings 13
14 Energy Reform Agenda Energy Access for More A key priority of government to mainstream access of the greater majority to reliable energy services and fuel, most importantly, local productivity and countryside development Good Governance thru stakeholder participation, transparency, multi-sectoral partnership and use of ICT Ensure Energy Security Achieve Optimal Energy Pricing Develop a Sustainable Energy System
15 Thank you and Mabuhay!!!!
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