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The republic act 9513 covers the framework for the accelerated development

of renewable energy resources and development of strategic program of


utilization. The renewable energy act cover the biomass, solar, wind, hydro,
geothermal and ocean energy sources, including hybrid systems This law
aims the country`s energy self-reliance through renewable energy
development and exploration. Through renewable energy the country
reliance on the fossil fuels in which are costly and prone to price fluctuations
would be lessen. It also that the government will provide tax incentives to
encourage and increase the utilization of the renewable energy resources.
The law also balances the economic effect and the protection of health and
environment.

The section 6 state that the NREB or the National Renewable Energy Board
to shall set the minimum percent of generation from renewable energy
resources and which sector the Renewable Energy Standard will be imposed.
This section of the law provides security to each renewable energy producers
to play a vital role in power generation in the Philippines. this would
encourage or force the renewable energy producers to improve their
facilities to generate more electricity. It would also give
The section 7 state that the in feed-in tariff system. The feed-in tariff system
would give priority to renewable energy generating companies over non
renewable in having the energy generation. Having the feed in tariff system
would ensure that the renewable energy producers are not being over
powered by the old non renewable energy producers. The feed in tariff
encourages the renewable energy producers by giving them a assured
market for their product.

The renewable energy market is established to facilitate the market for the
renewable energy produced. The REM is manage by DOE.As part of
empowering the renewable energy the law introduces the green energy
option. It gives the end user the choice on what energy they want to have.
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Providing energy in off grid areas is a challenging task especially to


coal power plant which needed facilities sucha as the electricity grid, power
station and sub stations that takes yrs to be place. The law allows the
renewable energy plants to use the opportunity to distribute energy in the of
grid areas and set up a renewable energy plant.

The government provides permits on the power generating companies


and if their permit or contract expires the government reclaims the property.
As part of the contract the companies are required to give a cut of their
gross profit to the government aside from tax. The law indicate that the
renewable energy producers are required to return 1% of their annual gross
income and if the company produces less than 100kw then they are not
required to return. The provision is a part of the incentives that the
government wants to give in order to encourage renewable energy in the
country.

The government gives the Renewable energy companies incentives


such as income tax holiday, duty free importation, spealty tax rate, net
operational loss carry over and corporate tax rates. This incentives are to
encourage and to provide support as they begin producing business.
Providing incentives also lowers the prices of the energy produce by lowering
the operating, material cost and others.The incentives that the government
provided there also compliance certificate to comply in order to protect the
environment an example of this is the environmental compliance certificate.
Private individuals are also encourage to be part of renewable energy
production. The law indicates that the incentives are not in limited to
companies but also includes the private individuals they provide such as
jatropha production. The incentives that the government are not permanent
for it is only given to provide support. The duration of the incentives is
mandated by the senate.

The renewable energy trust fund dedicates funds to different areas.


The areas that the fund is dedicated to are researchand development,
scholarship and environmental fund. As part of a Financial Assistance
Program shall provide loans to the REGC.

The waste to energy program encourage to use trash such as manure


and agricultural waste as a source of energy. The incentive that will be given
shall not be limited to the company but also to the local government that
caters it.

The law states that a regulation body must be created to manage the
renewable energy in the Philippines. the regulating body will be the
renewable energy management bureau. The bureau oversees and could file
a case in the court whenever an illegal activity is made. Every law indicates
penalties for so as RA9513 such as jail time and imprisonment.

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