GOVERNMENT URGED TO INVEST IN ALTERNATIVES
TO AVOID LUZON ENERGY CRISIS

Senator Edgardo J. Angara said that the development of alternative and Renewable Energy (RE) sources can help avert a looming energy crisis in Luzon that is projected to cause rotating blackouts by 2013.

Angara said that according to Professor Rowaldo del Mundo from the University of the Philippines National Engineering and Electricity Center, the Luzon grid will be unable to handle the increased power demand from growing business and industries, and that rotating blackouts are likely to occur.

Dr. Alan Ortiz, former president and CEO of the National Transmission Corp. has also stated there is a chance of power outages if growing power needs are not addressed.

Angara, Chair of the Congressional Commission on Science, Technology and Engineering (COMSTE), said that this show the pressing need for the government to speed up the development

COMSTE has been working closely with RE developers in wind, solar, and biofuels such as algae, to create a focused approach between government and the private sector and speed up the development of RE sources and industries that can complement existing coal fired plants.

"We should be able to take advantage of collaboration with the private sector and develop more energy projects that can take advantage of the Renewable Energy Act," added Angara.

He added that alternative energy sources will help address the growing power demands while lessening the negative environmental impact that coal fired power plants have.

The Renewable Energy Act of 2008 exempts renewable energy sources from Value Added Tax (VAT), grants a seven year income tax holiday, and prioritizes the purchase, grid connection and transmission of electricity generated by companies from renewable energy sources.