Republic Act No. 9513
AN ACT PROMOTING THE DEVELOPMENT, UTILIZATION AND
COMMERCIALIZATION OF RENEWABLE ENERGY RESOURCES AND FOR
OTHER PURPOSES
.
Presentation Outline
Renewable energy in the Philippines
Framework of the RA 9513
Salient Provisions of RA 9513
Incentives under the RA 9513
Conclusion
Renewable Energies in the Philippines
The
development
and
optimal use of the country's
renewable energy resources is
central to the Philippine's
sustainable energy agenda.
Renewable energy is an
essential part of the country's
low emissions development
strategy and is vital to
addressing the challenges of
climate
change,
energy
security, and access to energy.
At the year 2010, just 2 years after passing the RA 9513 as a
law, there are a total installed capacity of 5,438.0 MW of
renewable energy in the Philippines. Shown in the table below
are the renewable energies that are installed and the target
capacity by the year 2030 by NREP
Table 1. Total installed capacity (2010), target capacity (2030), and projected milestones per RE resources sector
Source: National Renewable Energy Program Executive Summary
Framework
of the Act
Salient Provisions of the Act
• Renewable Portfolio Standard (RPS)
• Feed-In Tariff (TIF) System
• Renewable Energy Market (REM)
• Green Energy Option
• Net-metering for Renewable Energy
• Adoption of waste-to-energy technologies
Renewable Portfolio Standard (RPS)
A policy which places an obligation on electric power
industry participants such as generator, distribution
utilities, or suppliers to source or produce a specified
fraction of their electricity from eligible RE resources.
The aim is to contribute on the growth of the
renewable energy industry by diversifying energy
supply while also helping to resolve the country’s
environmental concerns by reducing GHG emission.
Feed-In Tariff (TIF) System
It is a scheme in which electrical power
industry participants are obliged to source
electricity from RE generation at a
guaranteed fixed price for a given period of
time. This system is adopted to promote the
development of emerging RE resourced
through fixed tariff mechanism.
Renewable Energy Market (REM)
The Philippine Renewable
Energy Market (REM) is the
venue for the trading of RE
Certificates equivalent to an
amount of power generated
from RE resources and is
intended as a facility for
Mandated
Participants
to
comply with their Renewable
Portfolio Standards (RPS)
obligations. The RPS refers to
a market-based policy that
Source: Depart of Energy
Net-metering for Renewable Energy
A consumer-based renewable energy
incentive scheme wherein electric
power generated by an end-user (such
as house or office with photovoltaic
system) from an eligible on-site RE
generating facility and delivered to the
local distribution grid may be used to
offset electric energy provided by the
distribution utility to the end-user.
Source: SafEarth Clean Technologies
Adoption of
waste-to-energy
technologies
This encourages conversion
of biodegradable materials
such as, but not limited to,
animal manure, agricultural
waste, into useful energy
through processes
of
anaerobic
digestion,
fermentation,
and
gasification, among others
Incentives
under the
RA 9513
Fiscal
Incentives
1.Income Tax Holiday (ITH)
2.Duty-free Importation of RE Machinery,
Equipment and Materials.
3.Special Realty Tax Rates on Equipment
and Machinery
4.Net
Operating
Loss
Carry-Over
(NOLCO)
5.Corporate Tax Rate.
6.Accelerated Depreciation
7.Zero Percent Value-Added Tax Rate.
8.Cash Incentive of RE Developers for
Missionary Electrification
9.Tax Exemption of Carbon Credits
10.Tax Credits on Domestic Capital
Equipment and Services
Non-Fiscal Incentives
INCENTIVES
FOR
COMMERCIALIZATION (Section 21)
RE
INCENTIVES FOR FARMERS ENGAGED IN
THE PLANTATION OF BIOMASS RESOURCES
(Section 22)
TAX REBATE FOR PURCHASE OF RE
COMPONENTS (Section 23)
All manufacturers, fabricators and suppliers of locally-produced
RE equipment and components duly recognized and accredited
by the DOE, in consultation with DOST, DOF and DTI, shall,
upon registration with the BOI, be entitled to the privileges set
forth under this section.
1.Tax and Duty-free Importation of Components, Parts and
Materials
2.Tax Credit on Domestic Capital Components, Parts and
Materials
INCENTIVES FOR FARMERS
ENGAGED IN THE
PLANTATION OF BIOMASS
RESOURCES (Section 22)
For a period of ten (10) years after the
effectivity of RA 9153, all individuals and
entities engaged in the plantation of crops
and trees used as biomass resources such as
but not limited to jatropha, coconut, and
sugarcane, as certified by the Department of
Energy, shall be entitled to duty-free
importation and be exempted from ValueAdded Tax (VAT) on all types of agricultural
inputs, equipment and machinery.
Source: Sugar Asia
TAX REBATE FOR PURCHASE OF
RE COMPONENTS (Section 23)
To encourage the adoption of RE
technologies, the Department of Finance
(DOF), in consultation with Department of
Science and Technology (DOST), DOE,
and Department of Trade and Industry
(DTI), shall provide rebates for all or part
of the tax paid for the purchase of RE
equipment for residential, industrial, or
community use. The DOF shall also
prescribe the appropriate period for
granting the tax rebates.
Conclusion
The energy sector is one of the country's major
sources of greenhouse gas emissions. It is hoped
that by enacting the Renewable Energy Act of
2008, energy self-sufficiency will be achieved and
reliance on GHG emitting energy sources will be
reduced. the private sectors, are expected. With
the policy mechanisms laid down, incentives and
privileges
stipulated,
regulatory
framework
established, financial support appropriated,
among others, acceleration of utilization of RE
resources and participation from stakeholders,
especially from the private sectors, are expected.
References
https://www.officialgazette.gov.ph/2008/12/16/republic-act-no-9513/
https://eeas.europa.eu/archives/delegations/philippines/documents/press_corner/renewable_e
nergy_mechanisms_maniego_en.pdf
https://abolawfirm.com/salient-provisions-and-incentives-of-republic-act-ra-9513-therenewable-energy-act-of-2008/
https://ap.fftc.org.tw/article/721#:~:text=9513%20or%20the%20'Renewable%20Energy,whil
e%20protecting%20health%20and%20environment.
https://www.wesm.ph/market-development/re-market