Question & AnswerQ&A (Republic Act No. 9513)
Republic Act No. 9513 is known as the "Renewable Energy Act of 2008".
The Act declares policies to accelerate exploration and development of renewable energy resources, increase utilization of renewable energy through incentives, encourage development to prevent harmful emissions, and establish infrastructure to support renewable energy initiatives.
The Department of Energy (DOE) is the lead agency mandated to implement the provisions of this Act.
Renewable Energy Developers (RE Developers) are individuals or groups engaged in exploration, development, and utilization of renewable energy resources and operation of renewable energy systems/facilities.
The RPS is a market-based policy requiring electricity suppliers to source a minimum percentage of their energy supply from eligible renewable energy resources, as set by the National Renewable Energy Board (NREB).
It is a system requiring priority connection to the grid and purchase of electricity from emerging renewable energy resources at fixed tariffs for a period of no less than twelve years to accelerate renewable energy development.
Violators face imprisonment of one to five years, fines ranging from ₱100,000 to ₱100,000,000 or twice the damages caused, or both. Administrative fines may also be imposed by DOE.
Incentives include seven years income tax holiday, duty-free importation of machinery and equipment, special realty tax rates, net operating loss carry-over, lower corporate tax after ITH, accelerated depreciation, zero percent VAT, and other fiscal benefits.
The fund finances research, development, promotion, and commercialization of renewable energy, supports new resource operations, funds studies, and propagates renewable energy knowledge and benefits.
All renewable energy projects must comply with existing environmental regulations as prescribed by the Department of Environment and Natural Resources (DENR) and other concerned agencies.
Net-Metering is a system that allows distribution grid users who install renewable energy systems to be charged only for their net electricity consumption and credited for electricity they supply to the grid.
The NREB sets the renewable portfolio standard, recommends policies for the national renewable energy program, monitors implementation, oversees the Renewable Energy Trust Fund, and performs related functions.
The government share is 1% of gross income from renewable energy projects, except indigenous geothermal energy which has a 1.5% share; micro-scale projects for communal, non-commercial use are exempted.
Prohibited acts include noncompliance with RPS, refusal of net metering agreements, falsification of documents for incentives, failure to issue certification, and noncompliance with DOE guidelines.
The ITH period for registered renewable energy developers is seven (7) years from the start of commercial operations, with conditions for additional investment incentives.