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

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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

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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

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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

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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

Thank you and Mabuhay!!!!

www.doe.gov.ph

rguzman@doe.gov.ph