College Assignment Help Writing Original Writing Services Writing A Short Essay How To Write A Short Essay For College Help Writing My Paper Personal Essay For Graduate School Nursing Essay Writer Service Toronto Creative Writing Services Clearwater Creative Writing Services Essays Term Papers Essay Term Paper Difference Helping With Homework Adhd Parents Helping With Homework Write Academic Paper Write Scientific Paper Abstract How To Write Academic Paper For Publication Buy Essays Uk Buy Law Essays Uk Where To Buy Business Plan Pro Premier Writing Term Papers For A Living Help With Thesis Statements Buy A Paper Buy A Paper Shredder Buy A Paper For School Do My Assignments Australia Do My Homework Australia Homework Help In Economics Professional Writing Online Version 3.0 3rd Edition Professional Writing Online James Porter Malaysia Assignment Helper Pay For Research Paper Pay For Your Research Paper Write A Great Essay Write A Strong Essay Write A Good Essay Intro Write A Great College Essay Where Can I Pay Someone To Do My Homework Writing A Paper For College Best Cv Writing Services Uk Best Cv Writing Services India Top Cv Writing Services London Thesis Writing Write An Essay On My Computer Academic Paper Academic Paper Search Essay On My Best Friend In Marathi Language Assignment Help For Students Assignment Writing Service In London Term Papers Writers American Term Paper Writers High School Assignment Help High School Homework Help Write A Narrative Essay Write Report Writing How To Write Report Writing In English Why We Write Report Writing Best Custom Essay Best Custom Essay Company Online Essay Writers Writing Research Papers Writing Research Papers 13th Edition Can Someone Do My Paper University Of Texas At Austin Homework Service How To Buy A Research Paper Cheap Professional Essay Editing Services Custom Report Writing Service Admission Essay Writing Service Admission Essay Introduction College Paper Writers Essays Buy Buying Essays Online Plagiarism Essays English Children Best Place To Buy Research Papers Best Place Buy Research Paper Online Where To Buy Research Papers Write My Papers For Cheap Essays Help Essays Helper Helpless Essays Purchase Essay Online Write College Papers For Money Custom Essay Papers Cheap Custom Essay Papers Custom Essays Essay Help Essay Self Help Best Help Best Essay Help Discount Code Legit Essay Writing Services Cheap Custom Essays English Thesis Papers Custom Essay Writing Usa Academic Writing Services India Academic Paper Writing Service Educational Report Writing Hot To Write A College Essay Homework Hotline Number Homework Helpline Big Y Homework Hotline Ct Homework Helpline Homework Help Line Nyc Customized Essay Custom Essay Writing Custom Essay Help Buy Home Workout Equipment Buy Work Home Leads Key Worker Homebuy How Does Homebuy Work Best Buy At Home Work College Admission Essays For Sale Essay Research Paper Thesis Research Paper Help Writing Argumentative Essay Online Help With Homework Online Accounting Help With Homework Online Help With Algebra Homework Online Help With Statistics Homework How To Start Writing My Research Paper How Do I Start Writing My Research Paper English Essays For Students India English Essays For Kids India Are Custom Essay Writing Services Legal Write My College Essay Me Who Can Do My Essay For Me Nursing Assignment Help Help With Algebra Homework Help With Algebra 2 Homework Help With College Algebra Homework Professional Development Essay Professional Development Plan Essay Cv Writing Service Reviews Essay On Paper Boat Essay On Paper Bags Ghostwriters For Hire Ghost Writers For Hire Nyc Is It Safe To Buy Research Paper Online Law School Personal Statement Editing Service Write A Term Paper For Me Writing Service Agreement Contracts Buying Essays Online Caught Buying Essays Plagiarism Written Essay Papers Scholarship Essay For Business Scholarship Essay For Business School Cheapest Resume Writing Service In India Best Online Will Writing Services Help Me Write An Essay Best Way To Order A Research Paper Research Essay Papers Research Essay Thesis Statement Buy School Papers Buy Law School Papers Buy High School Papers Executive Resume Writing Services India Help With School Homework Help With Secondary School Homework After School Help With Homework Write My Paper Co Write My Write My Write My Reviews Essay Sites List How Can I Write A Perfect Essay How I Write A Good Essay Help Writing Term Paper Writing An Essay Conclusion Essay On Community Helpers For Kids Peer Helpers Essay Domestic Helpers Essay Write My Assignment Australia Best English Essay Site Best Photo Essay Sites Top Custom Writing Service Gre Essay Writing Gre Essay Writing Preparation Essay Writing Companies London Top Essay Writing Companies Writing English Essays Creative Writing English Essays Earth Science Homework Help Why We Buy Book Report Where Can I Buy Book Reports Personal Writing Essay English Essays For Secondary Students Essays For Secondary Students Essay Writing For Esl Learners Essays Written By Esl Students Writing A Narrative Essay For Kids Help Writing Papers Help Writing Research Paper Help Writing Philosophy Paper Custom Writing Cheap Custom Essay Writing Cheap Accounting Assignment Help Melbourne Law Assignment Help Melbourne Essays For High Schoolers Need Someone To Write My Essay Hire Someone To Do My Essay Buy Papers Please Buy Papersofa Professional Writing Company Professional Cv Writing Company Music To Help Write An Essay Words To Help Write An Essay Writing A Recommendation Letter For A Student Teacher How To Write A Recommendation Letter For A Student High School Someone Do My Essay Write Admission Essay Do Essay Writing Services Work Harvard Essay Writing Service Harvard Essay Writing System Harvard Referencing Essay Writing Buy Literature Review Uk Don#39t Want Do My Homework I Can#39t Do My Homework Lyrics Book Review Writing Services Photo Book Services Review Write Winning Scholarship Essays Who Can Write A Paper For You Write Your Paper For You Pay Someone To Write A Paper For You Music To Help Do Homework Help Me To Do My Homework Help I Don#39t Want To Do Homework Cheap Law Essays Cheap Labor Essays Online Report Writing Training Online Report Writing Tool Personal Essay For Graduate School Application College Essay Services Management Essays Leadership Essays Management Vs Leadership Essays Management Accounting Writing A Critical Analysis Of A Painting How To Write A Critical Analysis Essay On A Painting Cheap Essay Uk Professional Written Essays Professional Writing Essays Essay On Research Essay On Research Methods Essay On Research Methodology Essay On Research And Development Essay On Research Ethics Essay On Research Interest Essay On Research Report Easy Graduation Speeches Writing A Basic College Essay How To Write A Basic Argumentative Essay Paid Essays Paid Written Essays Paid College Essays College Essays Essay Writing Do My Research Project Do My Homework For Cash Writing An Essay Introduction To Compare And Contrast List Of Famous Essay Writers Best Resume Writing Services Canada Best Resume Writing Services Toronto Customer Writing Service Sites In Marathi I Need A Thesis I Need A Thesis For My Essay I Need A Thesis For My Paper I Need A Thesis Sentence I Need A Thesis Statement On Bullying Help Writing A Descriptive Essay Writing A Descriptive Essay Powerpoint Writing A Descriptive Essay About Yourself Cheap Dissertation Writing Services Who To Write A Essay How To Write A Essay For College Write Comparison Essay Comparing Writing Essays To Going To The Dentist Writing A Proper Essay How To Write A Proper Essay For College Essay For Me Essay For Medical Assistant Essay For Meteorology Homework Help With Science Writing Paper For College Students Buying Term Papers On Line Need Help With Accounting Assignment Need Help With Marketing Assignment College Homework Help College Algebra Homework Help Academic Writing For Graduate Students Pdf Academic Writing For Graduate Students Answer Key Academic Writing For Graduate Students Swales Academic Writing For Graduate Students Commentary Help Me Write My Paper Writing Essays In English Language And Linguistics Writing Essays In English Language And Linguistics Pdf Writing Essays In English Pdf Writing Essays In English Phrases Writing Progress Reports Writing Progress Reports For Iep Goals Writing Progress Reports For Reading Literature Review Writing Service Uk Research Writing Help Legal Research And Writing Help


Philippine Renewable Energy News Bulletin 4 – September 19, 2009

September 20th, 2009 Posted in renewable energy

Philippine Renewable Energy News Bulletin 4 – September 19, 2009

The recent passage of the Philippine Renewable Energy (RE) Law and its Implementing Rules and Regulations (IRR) now clearly defines the legal and regulatory framework for renewable energy investment in the Philippines.  After almost a long 10 year wait, this important piece of legislation has passed deliberations in both chambers of the Philippine Congress and Senate and was signed into law by President Gloria.

(Please email for IRR – or

The basic policy concepts in the RE law as expanded in its IRR are the following:

1) Setting up of Renewable Portfolio Standards (RPS) which generators, distribution utilities and suppliers of electricity shall source or produce a specific portion of their electricity from eligible RE resources as determined by the National Renewable Energy Board (NREB).

2) Adoption of feed-in tariff scheme which provides an obligation to the power industry to source RE generation at a guaranteed fixed price over a period of time, which should not be less than a period of 12 years, to be determined by the Energy Regulatory Commission (ERC).

3) Establishment of Green Energy Option program, a mechanism to be established by the Department of Energy (DOE), which shall provide end-users the option to choose RE resources as their source of energy.

4) Adoption of Net-Metering program to encourage end-users to participate in renewable energy generation without discrimination from distribution utilities.

5) Transmission and distribution utilities shall provide the needed connection facilities and ancillary services and provide the mechanism for the recovery of such additional costs to provide such service to RE generators.

6) DOE shall encourage the adoption of waste-to-energy systems and biogas systems to convert biodegradable waste materials such as animal manure and agricultural wastes using processes such as anaerobic digestion, fermentation and gasification to produce energy fuels or electricity, subject to the provision of the Philippine Clean Air Act of 1999 (RA 8749) and Philippine Ecological Solid Waste Management Act of 2000 (RA 9003).

7) The DOE shall establish the Renewable Energy Market (REM) as a sub-market of the Wholesale Electricity Spot Market (WESM) for the trading of RE Certificates in order to promote the Renewable Portfolio Standards (RPS).

8) Under the supervision of the DOE, the Philippine Electricity Market Corporation (PEMC) shall issue, keep and verify the RE Certificates corresponding to the RE generation from eligible RE facilities.

9) To promote off-grid renewable energy development, the NPC-SPUG, distribution utilities (DUs) and qualified third parties (QTPs) involved in providing rural electricity service shall source a minimum percentage of their annual generation from RE resources in their area as may be determined by the DOE upon recommendation by the NREB.  Such generation is eligible for the issuance of RE Certificates.

10) Establishment of a Renewable Energy Trust Fund (RETF) under the lead supervision of the DOE.  This fund shall be funded from the emission fees collected from all generating facilities consistent with the Clean Air Act, 1.5% of the net income of the PCSO, 1.5% of the net income of PAGCOR and all contributions, grants and donations which shall be income tax deductible.

11) Establishment of the National Renewable Energy Board (NREB) which shall monitor the implementation of this RE law and recommend policies to the DOE.

12) Creation of the Renewable Energy Management Bureau (REMB) under the DOE which shall develop, formulate and implement policies, plans and programs such as the National Renewable Energy Plan (NREP).

13) Definition of prohibited acts and providing sanctions thereof.

The incentives for renewable energy projects and activities are again listed below:

1) income tax holiday for 7 years, maximum of 21 years including new RE investments

2) corporate income tax of 10% of net taxable income (versus 32-35%)

3) 10-year exemption from customs tariff duties on imported capital equipment

4) net operating loss carry over (NOLCO)

5) accelerated depreciation (either declining balance method or sum-of-the-years digit method)

6) zero percent (0%) value added tax (VAT) rate

7) cash incentive for renewable energy developers such as qualified third parties (QTPs) in missionary electrification equivalent to 50% of the universal charge on the power needed to service the missionary areas where it operates

8) special realty tax (1.5% of net book value = original cost less accumulated depreciation)

9) tax exemption on custom credits

10) tax credit on domestically sourced capital equipment

11) 10-year duty free importation on capital equipment

12) VAT exemption of all types of agricultural equipment and machinery

13) tax rebates on purchase of RE components

14) tax exemption or incentives on hybrid and co-generation systems shall apply only to the equipment, machinery or devices utilizing renewable energy

15) all manufacturers, fabricators and suppliers of locally-produced RE equipment and components shall be entitled to tax and duty free importation of components, parts and materials, tax credit on domestic capital components, parts and materials, income tax holiday of 7 years, and zero-rated value added tax transactions

16) incentives for farmers engaged in the plantation of biomass resources such as crops (jatropha, sugar cane, coconut) and trees shall include duty-free importation and exemption from payment of value added tax on all types of agricultural inputs, equipment and machinery within 10 years

17) tax rebates for purchase of RE components for residential, industrial and community use

18) financial assistance program from government financial institutions (GFIs) such as Development Bank of the Philippines (DBP), Land Bank of the Philippines (LBP) and Philippine Exim Bank which shall provide preferential loan package for the development, utilization and commercialization of RE projects that are duly recommended and endorsed by the DOE

19) exemption from the payment of the universal charge being collected by PSALM for the recovery of stranded costs of NPC if the electricity generated is consumed by the generator itself or if it is distributed free of charge in the off-grid area

20) a registered RE developer producing power and electricity from an intermittent RE resource (e.g. wind, solar) may opt to pay transmission and wheeling charge to TRANSCO at the average rate per kilowatthour rate for all other electricity transmitted thru the grid

21) qualified and registered RE generating units with intermittent RE resources shall be considered “must dispatch” based on available energy and shall enjoy the benefit of priority dispatch

Other Provisions

Under this new RE Law, a Renewable Energy Service / Operating Contract similar to that given to oil, gas, geothermal and coal operating contracts shall be required before such RE resource could be exploited by individuals and companies since the state owns all forces of potential energy and natural resources such as kinetic energy from water, marine current and wind, thermal energy from solar, ocean, geothermal heat and biomass.

As such, any joint venture or co-production sharing agreements with Filipino citizens or corporations or associations at least 60% of the capital is owned by Filipinos subject to Article XII, Section 2 of the Philippine Constitution.

The government share on existing and new RE development projects, except geothermal energy, shall be 1% of the gross income incidental to and arising from the generation, transmission and sale of electric power.  Gross income shall comprise of gross sales less returns, discounts and allowances, and cost of goods sold.

Except for government-owned and controlled corporations, the government shall be distributed as 60% national government and 40% local government.

In the case of geothermal energy, however, the government share shall be 1.5% of gross income from the sale of geothermal electricity less cost of goods sold which shall consist of the direct cost of geothermal steam production.

The local government share shall further be distributed as follows: province – 20%, city/municipality – 45%, barangay – 35%.

When the natural resource is located in more than 2 provinces, cities or barangays, the sharing shall be based on the following weights: population – 70%, land area – 30%.

In the case of highly urbanized cities, the sharing shall be as follows: city – 65%, barangay – 35%.

All provisions under the WESM rules and Distribution and Grid codes which do not allow “must dispatch” status for intermittent RE resources shall be deemed amended or modified.

For the purposes of entitlement to the incentives and privileges under this law and IRR, the existing and new RE developers, manufacturers, fabricators and suppliers of locally-produced RE equipment shall register with the Renewable Energy Management Bureau (REMB) of the DOE and will be issued a Certificate of Endorsement by the DOE.

The DOE shall issue a Certificate of Registration to RE Developer holding a valid RE Service / Operating Contract.

The DOE shall likewise issue a Certificate of Accreditation to RE manufacturers, fabricators and suppliers of locally-produced RE equipment in coordination with the Department of Trade and Industry (DTI).

The RE sector is hereby declared a priority investment sector that will regularly form part of the Investment Priority Plan (IPP) provided they register with the Board of Investments (BOI).

Prospective Investors are encouraged to get in touch with the author for assistance in selecting projects your company would wish to invest in.

Likewise, if you need project finance models that incorporate the RE law incentives, please contact the author for your specific needs.

For more details about oil and energy pricing, energy technology information and renewable energy investment opportunities in the Philippines, please visit my website:

Marcial T. Ocampo

(Friendly note: All content written by Engr. Marcial T. Ocampo are copyrighted and may not be redistributed in any way or form.)

18 Responses to “Philippine Renewable Energy News Bulletin 4 – September 19, 2009”

  1. Philippine Renewable Energy News Bulletin 4 - September 19, 2009 - download IRR (too large) | Intelligent Utility Says:

  2. Philippine Renewable Energy News Bulletin 4 - September 19, 2009 - download IRR (too large) | Intelligent Utility Says:

  3. THE CASE AGAINST OIL DEREGULATION – Marcial Ocampo’s comment #1 | Intelligent Utility Says:

  4. Josiah Russell Says:

    Renewable energy is the future, why depend on fossil fuels when we can go renewable.`’.

  5. Elizabeth King Says:

    Renewable Energy got into more focuse in this decade because everyone does not want to depend on Oil.-“

  6. Anti Aging Products %0B Says:

    depending on fossil fuel is always a bad idea, we should always concentrate on renewable energy ‘,-

  7. ervin estandarte Says:

    RE law is a good thing. As a matter of fact our company is into biomethanation of organics collected from municipal solid wastes in cebu.

    I find it rewarding because from the start we developed this kind of renewable energy for our company needs only. Today, power producers are knocking on our doors to expand our output to connect to the grid so these power producers can also join with us and comply with the provisions of Renewable Portfolio Standard.

    Whew RA 9513 is a great law.

  8. syma rc helicopter s107 Says:

    I used to be very pleased to find this net-site.I wanted to thanks to your time for this excellent learn!! I positively enjoying every little little bit of it and I have you bookmarked to check out new stuff you weblog post.syma helicopter gyroscope.I feel you made certain nice points in features also.

  9. Trent Gelzinis Says:

    The very core of your writing while sounding agreeable initially, did not really work properly with me personally after some time. Someplace throughout the paragraphs you actually were able to make me a believer unfortunately just for a very short while. I however have got a problem with your jumps in assumptions and you would do nicely to fill in those breaks. If you can accomplish that, I could undoubtedly end up being amazed.

  10. PegeVupeVap Says:

  11. nyc seo firm Says:

    debt relief website -thats my mine – please take a look at it!

  12. Online Data Recovery Services Says:

    Online Data Recovery Services…

    [...]Philippine Renewable Energy News Bulletin 4 – September 19, 2009 | Energy Technology Expert[...]…

  13. models philippines Says:

    models philippines…

    [...]Philippine Renewable Energy News Bulletin 4 – September 19, 2009 | Energy Technology Expert[...]…

  14. pump air,air pump Says:

    pump air,air pump…

    [...]Philippine Renewable Energy News Bulletin 4 – September 19, 2009 | Energy Technology Expert[...]…

  15. gas, electricity, energy Says:

    gas, electricity, energy…

    [...]Philippine Renewable Energy News Bulletin 4 – September 19, 2009 | Energy Technology Expert[...]…

  16. Všetky lacné dvd Says:

    Všetky lacné dvd…

    [...]Philippine Renewable Energy News Bulletin 4 – September 19, 2009 | Energy Technology Expert[...]…

  17. Natalia Morris Says:

    An fascinating discussion is worth comment. I believe that you
    must write more on this topic, it may not be a taboo topic but usually individuals are not sufficient to speak on such topics.
    To the next. Cheers

  18. Carroll B. Merriman Says:

    I just want to mention I’m all new to weblog and truly enjoyed this web blog. Most likely I’m going to bookmark your blog post . You actually have superb posts. Cheers for sharing your website page.

Leave a Reply

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>