Environment

Philippines Leads the Way on Renewable Energy in SE Asia

by Lazylizards | December 18, 2008 at 07:49 am

677 views | 16 Recommendations | 4 comments

The Philippines took a bold step recently to pass a Renewable Energy Act. Like most of its neighbours, the country had allowed coal fired power to fuel a fast-paced load growth despite the higher rates of carbon emissions compared to renewable or even gas-fired sources of energy. The difference now is that legislating clean energy is finally recognised as the only way to address environmental issues from conventional thermal power generation.

As a non-Annex 1 country that signed up to Kyoto protocol, this energy poor country may also benefit from investments in projects under the Clean Development Mechanism, whereby developed nations (Annex 1 countries such as Japan and the EU) would fund projects in countries where it is cheaper to achieve lower emissions to earn credits.

The Philippines' President Gloria Macapagal-Arroyo has said new legislation is the "first and most comprehensive renewable energy law in Southeast Asia" that would enable the country to capture a part of the soaring investments in renewable energy development.

"With our Renewable Energy Act, we can now move aggressively to develop these resources," she added, referring to solar, biomass, geothermal, hydropower, wind and ocean-energy technologies.

"The benefits of renewable-energy use are considerable," Energy Secretary Angelo Reyes added. "It will foster sustainable growth, energy independence and economic security for the country, and unite us with the global effort to stop climate change."
The new law - Republic Act 9513 - provides fiscal and non-fiscal incentives for renewable energy investors, including tax credits on domestic capital equipment and services, special realty tax rates on equipment and machinery, tax exemption of carbon credits, duty-free importation mechanisms, and income tax holidays, among others.

The law also provides for the establishment of a Renewable Portfolio Standard system, which would require electricity suppliers to source a certain amount of their energy supply from renewable resources such as wind, solar, hydro, geothermal and biomass.

It is hoped, though, that the requirement to source energy from renewable sources is going to mean real and meaningful targets are set.

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Paschen

at 07:53 on December 18th, 2008

The Act is a great start and now they need to follow up on it and introduce action as well.

Lazylizards

at 08:06 on December 18th, 2008

Absolutely, Paschen. A neighboring country had introduced regulations, not laws a few years back, in which a 5% renewable energy target was set for 2005, but sad to say, today it's nowhere near this goal.

Amy Judd

at 10:07 on December 18th, 2008

Well this is definitely a step to creating awareness and alternative forms of energy, whether they have to do it by charging people or not - good for them

xRyanx (not verified)

at 19:20 on December 18th, 2008

The Philippines is already one of the top countries that harness renewable energy in the world. According to the International Geothermal Association (IGA), worldwide, the Philippines ranks second to the United States in producing geothermal energy. As of the end of 2003, the US has a capacity of 2020 megawatts of geothermal power, while the Philippines can generate 1930 megawatts. (Mexico is third with 953 MW according to IGA). Also, hydroelectric energy are being used in some areas of the country. In recent years, several far-flung communities received solar panels to light up villages that is so remote and this year test runs of electric-powered jeepneys were held in at least two pilot cities. The Philippines is also the first country in Southeast Asia to introduce wind farming in the North. Although the country has a long way to go tho, like enforcing the Clear Air Act, and is currently facing several environmental problems, I think the country is doing pretty well in its baby steps towards a greener and more environment-friendly national policymaking and enforcement. Another issue that needs to be tackled is the conversion of agricultural lands/food baskets into biodiesel/ethanol production.