The Department of Energy (DOE) has issued the amended implementing rules and regulations of the Renewable Energy (RE) Act of 2008, simplifying requirements in availing of incentives.
Department Circular 2021-12-0042 signed by DOE Secretary Alfonso Cusi last month also ensures proper availment of those incentives through an efficient government process for RE projects.
Cusi said the amended policy would address the long-standing concerns of the RE law’s target recipients, including RE developers, fabricators and manufacturers regarding the availment of the law’s incentives.
These include, among others, the implementation of the tax provisions, particularly the automatic availment of the 10-percent corporate tax rate and zero-rate value added tax, Cusi said.
He added incentives can also help reduce power rates due to lower pass-on charges to consumers. They also promote RE investments from domestic and foreign developers.
The DOE said to assess the effectiveness of the latest circular, annual reports submitted by RE developers will be reviewed.
The review will determine whether or not the objectives of the RE Act are being met.
As of end-2020, the combined installed capacity of RE power plants in the country composed of geothermal, hydro, biomass, solar and wind projects reached 7,653 megawatts equivalent to 29 percent of the mix.
Total power generation from RE sources hit 21,609 gigawatt hours equivalent to 21 percent.– Jed Macapagal
