Manila, Philippines - With the passing of its Renewable Energy Act – legislation that spent 19 years in limbo - the Philippines can save over US$2.9 billion, a WWF and University of the Philippines study has found. The savings would come from increasing the country’s renewable energy share in its power generation mix from 0.16 per cent to 41 per cent from wind, solar, ocean, run-of-river hydropower and biomass.
Manila, Philippines - With the passing of its Renewable Energy Act – legislation that spent 19 years in limbo - the Philippines can save over US$2.9 billion, a WWF and University of the Philippines study has found.
The savings would come from increasing the country’s renewable energy share in its power generation mix from 0.16 per cent to 41 per cent from wind, solar, ocean, run-of-river hydropower and biomass.
Today 26 per cent of the country’s power comes from burning imported coal, whilst 23 per cent comes from burning oil. Last year the country imported 101.4 million barrels of oil alone, costing US$7.5 billion.
“In passing this landmark legislation, the Senate has just paved the way for the country’s drive towards energy independence and low-carbon growth,†said WWF’s Asia Pacific Energy Policy Manager Raf Senga.
“By tapping our massive reserves of clean energy resources – a competitive advantage that was largely neglected in the past – the Philippines now stands a far better chance of attaining sustainable development whilst contributing to global efforts to prevent dangerous climate change.â€Â
A separate Renewable Energy Coalition analysis says that renewable energy sources can reduce the country’s oil imports by half, and the savings can be used for social and infrastructure programs.Â
“We can send 17 million children to school, build 250,000 classrooms, establish 135,000 health centres, feed three million families and build 38,000 kilometres of farm-to-market roads,†said Renewable Energy Coalition spokesperson Catherine Maceda.Â
The landmark legislation aims to accelerate the development and use of the nation’s vast renewable energy resources through fiscal and non-fiscal incentives for investors. It also assures investors in wind, solar, ocean, run-of-river hydropower and biomass premium rates in electricity generated from these clean sources through feed-in tariffs.Â
Other incentives include duty-free importation of equipment, tax credit on domestic capital equipment and services, special realty tax rates, income tax holidays, net operating loss carry-over, accelerated depreciation and exemption from the universal charge and wheeling charges.
