Landmark legislation to accelerate use of the vast renewable energy potential in the Philippines through incentives for investors could save the country over $2.9 billion dollars, a study has found. The newly passed Renewable Energy Act assures investors in wind, solar, ocean, hydropower and biomass premium rates in electricity generated from these clean sources.
Other incentives in the law 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.
The savings would come from increasing the country’s renewable energy share in its power mix from 0.16 percent to 41 percent, while importing less oil. Last year they imported 101.4 million barrels of oil, costing US$7.5 billion. The goal is to cut the country’s oil imports by half, and use the savings for social and infrastructure programs. Surrounded by water to be used for hydropower, with ample sun for solar and wind for turbines, the country is well equipped with natural resources needed for creating sustainable renewable power.