Heralded as a landmark move by the government, in December 2008, the Philippine president signed the Renewable EnergyRenewable energy is power generated from infinite sources, such as wind or solar power. Conventional energy is generated from finite sources, such as natural gas or fossil oil. Act (RE Act), demonstrating the country’s commitment to developing renewable energyThe ability to perform work, mainly kinetic, potential, thermal energy, but also in forms of gravitational, sound, elastic and electromagnetic energy. (RE) in its objective to utilise sustainable energy practices. The Act seeks to make the country 60% energy sufficient by 2010 and to mitigate problems caused by climate changeClimate change is a lasting change in weather patterns over long periods of time. It can be a natural phenomena and and has occurred on Earth even before people inhabited it. Quite different is a current situation that is also referred to as climate change, anthropogenic climate change, or .... Investments in renewable energy sourcesRenewable energy harnesses energy that is available to us infinitely, from sources like wind or lunar energy. not only contribute to the region’s sustainability but also reduce importing costs while boosting the local renewable energy industry and generating employment.

Map of Philippines - Source: WikiCommons

The Act is said to be the first and most comprehensive renewable energy legislation in Southeast Asia and would enable the Philippines to capture part of US$71billion investments in renewable energy development worldwide.

The Philippines is blessed with rich renewable energy resourcesRenewable energy harnesses energy that is available to us infinitely, from sources like wind or lunar energy. including robust windWind occurs due to different temperature levels in the atmosphere (troposphere) which are heated up by the sun. A typical example are the trade winds at the equator where the sun is most powerful.. energy sites, ideal solar conditions, and an abundance of hydroHydro power is electrical energy produced through the power of moving water.
Power obtained from the (typically gravitational) movement of water. and biomassEnergy resources derived from organic matter. These include wood, agricultural waste and other living-cell material that can be burned to produce heat energy. They also include algae, sewage and other organic substances that may be used to make energy through chemical processes.
Biomass, a ... resource. It is therefore fitting that the nation takes advantage of this by encouraging industry development.

The RE Act seeks to spur the development of RE sources by providing incentives to investors, equipment manufacturers and suppliers. These include tax credits on domestic capital equipment and services, special realty tax rates on equipment and machinery, tax exemption of carbon creditsCarbon credits provide a way to reduce greenhouse effect emissions on an industrial scale by capping total annual emissions and letting the market assign a monetary value to any shortfall through trading., and duty-free importation mechanisms.

These include non-fiscal incentives such as

1. The establishment of renewable portfolio standards (RPS) which would require electricityA form of energy having magnetic, radiant and chemical effects. Electric current is created by a flow of electrons. distributors to include a certain percentage of their supply from renewable energy sources
2. A feed-in tariffA Feed-in Tariff is an incentive structure to encourage the adoption of renewable energy through government legislation. The regional or national electricity utilities are obligated to buy renewable electricity at above-market rates set by the government. system to help renewable energy projects become viable
3. A green energy option, wherein users can choose energy from green sources and take advantage of incentives
4. Net metering, wherein users and independent producers will only be billed on the net usage of powerUseful energy can be mechanical energy, for example powering a fan. from the gridA grid is a network of transmission lines, usually to distribute electric power . and can sell their excess power to the grid and
5. The establishment of a renewable energy market whereby green energy credits are validated, certified and can be traded.

The Act has the capacity to see electric utilities required to source a certain amount of their energy supply from renewable resources, such as wind, solar, hydro, geothermalAlso known as geothermal power. Heat that is stored inside the earth is transformed into electrical energy by geothermal power plants. This form of energy is considered to be cost-effective, reliable and friendly to the environement. or biomass.

The region is proclaimed as holding the largest market for geothermal power in Asia and the world’s second largest market next to the United States. Under the Department of Energy’s medium-term Renewable Energy Policy Framework, the government aims to develop more than 4,000 MW of additional RE capacity, some 1,200 MW of which are planned to come from geothermal sources.

The Act can be downloaded here.