PHL eyes increase in Renewable Energy-based installed capacity

The Philippines hopes to increase its existing 5,369 megawatts Renewable Energy-based installed capacity to 15,319 MW,  according to the country’s Renewable Energy Outlook 2011 to 2013. This could be achieved by accelerating the exploration and development of renewable energy resources and increase the utilization of renewable energy by providing fiscal and non-fiscal incentives, said Assistant Secretary Daniel Ariaso Sr. of the Department of Energy. The proposed incentives include income tax holiday and low income tax rate, reduced government share, duty-free importation of equipment and value-added tax (VAT)-zero rating, tax credit on domestic capital equipment, special realty tax rate on equipment and machinery and cash incentive for missionary electrification. Other incentives include exemption from universal charge, payment of transmission charges, tax exemption on carbon credits. Ariaso presented the outlook, which is under the National Renewable Energy Program, on Thursday during the opening of the Philippine Hydropower Summit. Vice President Jejomar Binay, who graced the summit's opening ceremonies, urged the DOE to fully implement the Renewable Energy Act of 2008 to encourage investors in the sector. “We have seen many good laws. We stumble in the institution and implementation…The RE Act of 2008 must be implemented with a firm resolve. The DOE should help these renewable projects see their conclusion,” he said. Renewable energy players, however, hoped that the permitting process would be more streamlined. “We’re asking if we can streamline it. For example, we don’t have to go to the Department of Energy 12 or 14 times to be able to complete the permitting process,” said Rene Ronquillo president of Aboitiz Power’s Hedcor Inc. — KBK, GMA News