Renewable Energy Act of 2008

Establishes a framework to accelerate development, advancement, and strategic utilization of RE resources.

Extensive definitions covering RE resources and systems, government agencies, market entities, types of energy systems, and technical terms.
Includes specific terms like Biomass, Co-generation, Distributed generation, Feed-In Tariff, Green Energy Option, Hybrid Systems, Net-Metering, Renewable Portfolio Standards (RPS), Renewable Energy Market (REM), etc.

DOE designated lead agency for enforcement and implementation.
National Renewable Energy Board (NREB) created to set RPS, monitor programs, and recommend actions.

Guaranteed fixed tariff rates for electricity from emerging RE technologies (wind, solar, ocean, run-of-river hydropower, biomass).
Priority grid connection, purchase, and transmission.
Rates fixed for no less than 12 years.

DOE to establish REM and direct PEMC to integrate its operations into the Wholesale Electricity Spot Market (WESM).
Issuance and tracking of Renewable Energy Certificates (RECs) for compliance with RPS.

Distribution utilities must allow qualified end-users to install RE systems and enter net-metering agreements.
Establish standards and pricing mechanisms.
Distribution utilities entitled to resulting RE certificates, usable for RPS compliance.

Transmission Corporation (TRANSCO) and Distribution Utilities must include RE connection facilities in their development plans.
Such RE facilities subject only to ancillary service charges.

Government share: 1% gross income of RE developers, 1.5% for indigenous geothermal energy.
Waiver of government share for micro-scale projects not exceeding 100 kW.

All RE activities must comply with environmental regulations prescribed by DENR or concerned agencies.

Income Tax Holiday (ITH) for 7 years.
Duty-free importation of RE machinery, equipment, parts for 10 years with DOE endorsement.
Special realty tax capped at 1.5% of original cost.
Net operating loss carry-over allowed for 3 years, except losses due to incentives.
After ITH period, corporate tax fixed at 10%.
Accelerated depreciation option if no ITH granted.
Zero percent VAT on RE generated fuel/power sales and local supply purchases.
Cash incentives for missionary electrification.
Tax exemptions on carbon credit proceeds.
Tax credit for domestic purchases of machinery and parts.

RE Developers and manufacturers must register with DOE's Renewable Energy Management Bureau for certification and incentives.

Composed of government agencies and sectoral representatives.
Powers include setting RPS, monitoring implementation, overseeing Renewable Energy Trust Fund.

Managed by DOE for financing research, promotion, operation of RE projects, including scholarships.
Funded by emission fees, a portion of income from government corporations, contributions, fines and penalties.

Government financial institutions to provide preferential packages for RE projects.

DOE encouraged to promote biogas and similar technologies complying with environmental laws.

80% of royalties/government share to subsidize electricity consumption of low-usage end-users in host communities.

Established under DOE to implement policies, maintain RE data, promote commercialization, monitor compliance.

Includes noncompliance with RPS, refusal of net-metering, falsification for incentives.
Penalties: imprisonment (1-5 years), fines (P100,000 to P100 million or double damages), and administrative sanctions.

Funding initially from DOE appropriations; later from General Appropriations Act.
Invalid provisions do not affect rest of law.
Inconsistencies with other laws amended or repealed accordingly.
Law effective 15 days after publication in newspapers.