13 February 2008
MIRIAM URGES SWITCH TO RENEWABLE ENERGY
Sen. Miriam Defensor Santiago, chair of the Senate committee on energy, today delivered her sponsorship urging the Senate to pass the proposed Renewable Energy Act of 2008.Although there is no internationally accepted definition, Santiago defined renewable energy as “energy which comes from a source not depleted by use, constantly replenished, and never runs out.”
She said that according to the International Energy Agency, renewables include combustible renewables and wastes, hydro power, geothermal, solar, wind, wide, wave or ocean, and hydrogen.
“Renewable energy has become the buzzword of the day, because its potential for use is very large, exceeding all other readily available sources. Investment capital flowing into renewable energy climbed from $80 billion in 2005 to a record $100 billion in 2006,” she said.
Santiago argued for the Senate to pass the bill immediately, because it will contribute to world energy supply security, reduce dependence on fossil fuel resources, and provide opportunities for mitigating greenhouse gases.
“The renewable energy market could increase fast enough to replace and initiate the decline of fossil fuel dominance. Renewables are gaining credence among private investors as having the potential to grow into the next big industry,” she said.
Santiago pointed out that the proposed Renewable Energy Act introduces into the Philippines the Renewable Portfolio Standard which requires electricity suppliers to get an agreed portion of their energy supply from renewable energy.
The bill also creates the Renewable Energy Market, which will be a sub-market in the Wholesale Electricity Spot Market under the EPIRA law.
It also provides the Green Energy Option (GEO), empowering end users to select their electricity requirements sources from renewable energy sources.
Among the incentives offered by the bill for GEO certified developers of renewable energy facilitators are VAT exemption, duty-free exemption, tax credit on domestic capital equipment and services, caps on realty tax rates, and income tax holiday exemption, among others.
Similar incentives are offered to manufacturers, fabricators, and suppliers of locally produced equipment and products for renewable energy facilities.
The bill creates the National Renewable Energy Board, and establishes the Renewable Energy Trust Fund.
“The bill will bestow the benefits of energy security, lower energy prices, particularly electricity rates, sustainable investment, and a healthier community,” Santiago said.
She said that the country could save P200 billion in fuel purchases, P 22 billion in costs due to the harmful effect of conventional fossil fuel-fed power plant emissions, P9 billion in carbon credits, P67 billion from the creation of wealth from renewable energy-based plants.
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