Monday, October 13, 2008 Renewable Energy bill passage lauded
AN AMERICAN investor on Sunday hailed the passage of the Renewable Energy (RE) bill since this would further spur more investment.
Hans Christian Hauschildt, vice-president of the Universal Energy Saving Inc., said the passage of the RE bill will be very beneficial to the Filipino consumers who are burdening the high cost of power rates in the country.
He said renewable energy sources such as solar, wind, and hydro are sure to help the consumers lower down the cost of their consumption monthly.
"Wind and solar power are definitely dependable with the passage of the RE bill," Hauschildt said at the launched of their power saving machine called Power Save 1200.
While admitting that the solar panels and wind turbines (which are also among their products) currently cost higher at around P250,000 to P3 million, Huaschildt said it is expected to be cheaper in the next few years especially now that the RE bill has been approved in the bicameral conference committee.
The passage of the RE bill is expected to reduce the prices of solar (panels) and wind turbines between 10 to 20 percent," he added.
Hauschildt also noted that investors especially from the US have been waiting for the passage of this bill to enable them to enter the Philippine market which they consider would be a "significant" market for renewable energy.
Energy Secretary Angelo Reyes said for the geothermal alone, we still have about a 1,200 megawatt (MW)-available capacity that could be explored while for the wind we still have about 7,400 MW accessible capacities.
"There are still untapped renewable sources of energy open for investments to supplement our long-term supply requirements," Reyes said.
Last October 8, the Senate and the House of Representatives agreed to provide an income tax holiday for seven years to renewable energy developers while carbon credits generated from renewable energy projects will also be exempted from all taxes.
The bill also gave a 10-percent corporate income tax against the regular 30 percent to the investors once the income tax holiday expires and renewable energy facilities are also given a 1.5 recent realty tax cap on original cost of equipment and facilities used to produce "renewable" energy.
The bill also puts a priority on the purchase, grid connection and transmission of electricity generated by companies from wind, solar, ocean, run-of-river hydropower and biomass resources.
On the other hand, consumers who purchase the electricity-generated from renewable energy sources is free from value-added tax. (MSN/Sunnex)
