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1st EU-PHILIPPINES MEETING ON ENERGY
“Sharing Experiences on Renewable Energy Promotion”
February 27, 2012
Ruby B. de Guzman
Renewable Energy Management Bureau
THE RENEWABLE ENERGY ACT of 2008 (R. A. No. 9513) IMPLEMENTATION
I. Previous Laws and Issuances on RE
II. Landmark Laws on RE� Biofuels Act of 2006
� Renewable Energy Act of 2008
III. Policy Implementation and Mechanisms
IV. Status of RE Projects
V. The Way Forward
Presentation Outline
Biofuels
� Memorandum Circular No. 55
Geothermal
� Presidential Decree No. 1442
Mini-Hydro
� Republic Act No. 7156
Ocean, Solar, Wind
� Executive Order No. 462 as amended by EO 232
Previous Laws and Issuances on RE
Republic Act No. 9367
“Biofuels Act of 2006”
Republic Act No. 9513
“Renewable Energy Act of 2008”
4
Landmark Laws
5
RA 9367: Biofuels Act of 2006
Provides fiscal incentives and
mandate the use of biofuel-
blended gasoline and diesel
BIODIESEL
� 2% biodiesel blend on Feb. 6, 2009 in all
gasoline stations nationwide
� 2010 consumption of 125 million liters
BIOETHANOL
� Start of 5% by total volume on Feb. 6, 2009
� 10% bioethanol blend to all gasoline on
Feb. 6, 2012
6
RA 9513: Renewable Energy Act of 2008
Accelerate the development of the country’s renewable energy resources by
providing fiscal and non-fiscal incentives to private sector investors and
equipment manufacturers/fabricators/suppliers
7
Policies under RA 9513
� Accelerate the exploration and development of renewable
energy resources
� achieve energy self-reliance
� to reduce the country’s dependence on fossil fuels
� minimize the country’s exposure to price fluctuations
� adoption of clean energy to mitigate climate change
� promote socio-economic development in rural areas
� Increase the utilization of renewable energy by providing
fiscal and non-fiscal incentives
8
Policy Implementation
� Establishment of the Renewable Energy Management Bureau
� DOE’s lead unit in the implementation of the Acts
� Operationalized on 14 July 2009
�Creation of the Interim Negotiating Panel for RE Service/Operating
Contracts on 09 September 2009
� Creation of the National Renewable Energy Board
�Created Sub-committees and working groups to facilitate the formulation of
mechanisms, rules and guidelines on the ffg:
� RPS, FIT, Net Metering, Green Energy Option and RE Trust Fund
� Creation of the National Biofuel Board
�Formulated the National Biofuel Program
�Promulgated the JAO 2008-1 providing guidelines for the production,
transportation, storage and handling of biofuels in the country
9
Policy Mechanisms
� Lowering of investment costs
� Fiscal Incentives� Income Tax Holiday and Low Income Tax Rate
� Reduced Government Share
� Duty-free Importation of Equipment and VAT-zero Rating
� Tax Credit on Domestic Capital Equipment
� Special Realty Tax Rate on Equipment and Machinery
� Cash Incentive for Missionary Equipment
� Exemption from Universal Charge
� Payment of Transmission Charges
� Tax Exemption on Carbon Credits
10
Policy Mechanisms
� Enhanced Competitiveness
� Mandatory Utilization of RE Resources� Biofuels Mandate
� Renewable Portfolio Standard (RPS)
� Feed-In-Tariff
� Other Market Options� Net Metering Concept
� Green Energy Option
11
Where are we now?
RE Resources
PD 1442 / RA 7156 / EO 462 / MC 55
RA 9367 / RA 9513
No. of
Companies
No. of Projects No. of
Companies
No. of Projects
Hydro Power 11 27 36 133
Ocean Energy 0 0 2 3
Geothermal 4 10 13 27
Wind 6 9 16 53
Solar 0 0 7 8
Biomass 0 0 40 42
Biofuels 5 5 15 15
Total 26 51 129 281
12
The Way Forward
RESOURCE No. of Contracts Under Pre-Dev. Under Dev. Existing
Hydro Power 110 110 0 0
Ocean Energy 2 2 0 0
Geothermal 15 12 0 3
Wind 49 48 0 1
Solar 25 25 0 0
Biomass 16 0 13 3
Total 217 197 13 7
PENDING CONTRACTS
PENDING OWN-USE REGISTRATION
RESOURCE No. of Contracts Under Pre-Dev. Under Dev. Existing
Biomass 6 0 0 6
Solar 1 1 0 0
Total 7 1 0 6
13
The Way Forward
� Setting of Renewable Portfolio Standard (RPS) and Feed-In-Tariff (FIT)
� Formulation of Guidelines on other RE Policy Mechanisms (Net
Metering, Green Energy Option, etc.)
� Establish Energy Investment Coordinating Center and Linkages with
other Government Regulatory Agencies
� NEDA PPP One Stop Shop (DTI / BOI / DOF / BIR, BOC
� DENR / EMB, FMB, LMB, NSWMC
� NWRB / NCIP
� Resource Inventory and Establishment of RE Database
� Capacity Building / Information, Education and Communication
Campaigns
� Investment Missions / Business Meetings
Ensure
Energy
Security
Achieve
Optimal
Energy
Pricing
Develop a
Sustainable
Energy System
Good Governance thru stakeholder participation,
transparency, multi-sectoral partnership and use of ICT
“Energy Access for More”A key priority of government to mainstream access of the greater majority to reliable
energy services and fuel, most importantly, local productivity and countryside
development
Energy Reform Agenda