Press Release
February 25, 2008

ANGARA OUTLINES RENEWABLE ENERGY RATIONALE
Pushes for more incentives towards sustainable energy system

"The Renewable Energy Act is a response to the perennial problems in the power industry, with electricity tariffs that are among the highest in Asia," said Senator Edgardo J. Angara, one of the authors of the proposed Renewable Energy bill.

According to the Senator, the country exhibits a vast, well-mapped potential for renewable energy (RE) resources. "These indigenous RE are considered as both clean sources of energy and a viable alternative to providing electricity to off-grid barangays."

Under the proposed bill, the Small Power Utilities Group (SPUG) of the National Power Corporation (NPC) shall provide missionary electrification or a basic electricity services in off-grid areas. Existing end users, on the other hand, will be given an option to choose RE resources through the Green Energy Option Program of the Department of Energy.

"RE aims to extend power coverage to all the barangays by 2010, connect all potential consumers by 2018, and bring electricity to all of 10.17 million consumers by 2025," Angara explained.

"However, such vision may only be attained with the right kind of incentives to draw in renewable energy projects and activities," Angara lamented.

With that, the Senator is pushing for incentives to entities and stakeholders engaged in the manufacture, distribution, use and commercialization of RE. It includes among others duty-free importation, tax credit on domestic capital equipment and services, special realty tax rates on equipment and machinery, income tax holiday (ITH) and exemption, net operating loss carry-over, accelerated depreciation, exemption from the universal charge and TRANSCO's wheeling charge.

"RE bill will strengthen and institutionalize our current efforts to implement and develop a sustainable energy system and cope with increasing energy requirements."

To date, Philippines is already a major user of renewable energy. RE represent the country's single energy source contributing around 28% of the total energy requirements.

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