TOPIC 7
RENEWABLE
ENERGY ACT OF 2008
(RA 9513)
GROUP 3
BONCALES, OLIV MARIE L. MICABALO, JOHANNE L.
CASE, STEPHANIE GRACE OCIONES, JOHN LLOYD
GENITA, ANTONIO LAURENCE PARAGOSO, RUEL
MAPUTOL, YULEHEBER RIVERA, KIMBERLY
TOPIC 7
REPUBLIC ACT 9513
Renewable Energy Act of 2008
AN ACT PROMOTING THE DEVELOPMENT,
UTILIZATION AND COMMERCIALIZATION OF
RENEWABLE ENERGY RESOURCES AND FOR OTHER
PURPOSES
December 16, 2008
TOPIC 7
SALIENT FEATURES
On-Grid Renewable Energy Development (Chapter 3)
✔ Renewable Portfolio Standards (RPS)
✔ Feed-In Tariff System (FIT)
✔ Renewable Energy Market (REM)
✔ Green Energy Option
✔ Net-metering for Renewable Energy
✔ Transmission and Distribution System Development.
Off-Grid Renewable Energy Development (Chapter 4)
✔ Minimum RE generation capacities
CHAPTER 3
ON-GRID RENEWABLE ENERGY DEVELOPMENT
Section 6. 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 sources.
The National Renewable Energy Board (NREB) shall set the minimum
percentage of generation from eligible RE sources and which sector RPS
shall be imposed on a per grid basis.
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 emissions
CHAPTER 3
ON-GRID RENEWABLE ENERGY DEVELOPMENT
Section 7. Feed-In Tariff Systems (FIT)
Energy Regulation Commission (ERC), in consultation with the NREB
For emerging renewable energy resources to be used in compliance with
renewable portfolio standard
✔
✔ Wind
Solar
✔
✔ Ocean
Run-of-River Hydropower
✔ Biomass
Priority connection to the grid
Priority purchase and transmission of, and payment for, such electricity by
the grid system operators
Fixed tariff by technology
CHAPTER 3
ON-GRID RENEWABLE ENERGY DEVELOPMENT
Section 8. Renewable Energy Market (REM)
The REM, established by the DOE, is the venue for 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.
CHAPTER 3
ON-GRID RENEWABLE ENERGY DEVELOPMENT
Section 9. Green Energy Option
Established by the DOE which gives the end-users the option to choose the RE
resources as their sources of energy.
End-users shall have the option to source their energy requirements from the
Distribution Utilities (DUs) and Retail Electricity Suppliers (RES)
DUs and Electric Cooperatives (ECs) shall contract directly with the RE
Developers for the corresponding requirements of end-consumers’ option and
are mandated to provide the mechanisms for the physical connection and
commercial arrangements necessary to ensure the success of the Green
Energy Option
ERC to develop regulatory framework
CHAPTER 3
ON-GRID RENEWABLE ENERGY DEVELOPMENT
Section 10. Net Metering for RE
DUs may enter into Net-Metering agreements with qualified end-
users
The ERC, in consultation with the NREB shall develop Net-Metering
interconnection standards and pricing methodology and other
commercial arrangements
The DOE, ERC, Transco, DUs, PEMC and all relevant parties are
mandated to provide mechanisms for physical connection and
commercial arrangements
CHAPTER 3
ON-GRID RENEWABLE ENERGY DEVELOPMENT
Section 11. Transmission and Distribution System
Development
TRANSCO or its successors-in-interest or its buyer/concessionaire
and all DUs, shall include the required connection facilities for RE-
based power facilities in the Transmission and Distribution
Development Plans: Provided, That such facilities are approved by
the DOE. The connection facilities of RE power plants, including the
extension of transmission and distribution lines, shall be subject
only to ancillary services covering such connections.
CHAPTER 4
OFF-GRID RENEWABLE ENERGY DEVELOPMENT
Section 12. Off-Grid Areas
Minimum RE Generation Capacities
Eligible RE generation in off-grid and missionary areas shall be
eligible for Section 8 of this Act. In the event there are no viable RE
resources in the off-grid and missionary areas, the relevant
electricity supplier in the off-grid and missionary areas shall be
obligated under Section 6 of this Act.
CHAPTER 7
GENERAL INCENTIVES
Fiscal Incentives Non- Fiscal Incentives
Income Tax Holiday (ITH)
Duty-free Importation of RE Machinery Incentives for RE Commercialization
Equipment and Materials (Section 21)
Special Realty Tax Rates on Equipment and Incentives for Farmers Engaged in
Machinery the Plantation of Biomass Resources
Net Operating Loss Carry-Over (NOLCO) (Section 22)
Corporate Tax Rate Tax Rebate for Purchase of RE
Accelerated Depreciation Components (Section 23)
Zero Percent Value-Added Tax Rate
Cash Incentive of RE Developers for Missionary
Electrification
Tax Exemption of Carbon Credits
Tax Credits on Domestic Capital Equipment
and Services
CHAPTER 7
GENERAL INCENTIVES
Incentives for RE Commercialization
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 in under this section.
1) Tax and Duty-free Importation of Components, Parts & Materials
2) Tax Credit on Domestic Capital Components, Parts & Materials
CHAPTER 7
GENERAL INCENTIVES
Incentives for Farmers Engaged in Plantation of Biomass
Resources (Section 21)
For a period of ten (10) years after the effectivity of RA 9513, 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 Value-Added Tax (VAT) on all types of
agricultural inputs, equipment, and machinery.
CHAPTER 7
GENERAL INCENTIVES
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, 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 the granting the tax rebates.
CHAPTER 8
GENERAL PROVISIONS
Section 27. Creation of the National Renewable Energy
Board (NREB)
Formation: The NREB is formed with members from various government
agencies and sectors related to renewable energy.
Convening: The Chairman gathers the NREB within one month of the Act's start.
Assistance: The DOE's Renewable Energy Management Bureau provides technical
support to the NREB, reporting directly to the DOE's Office of the Secretary or
Undersecretary.
Powers and Functions: The NREB evaluates and recommends Renewable
Portfolio Standards (RPS) and oversees the National Renewable Energy Program
(NREP), among other responsibilities.
CHAPTER 8
GENERAL PROVISIONS
Section 28. Renewable Energy Trust Fund (RETF)
Establishment: A fund is created to support renewable energy development,
administered by the DOE.
Funding Sources: Various sources contribute to the fund, including emission fees,
government income percentages, contributions, and fines from non-compliance.
Utilization: The fund is used for research, development, operation, and
dissemination of renewable energy knowledge.
Section 29. Financial Assistance Program
Government financial institutions provide preferential financial packages
for renewable energy projects recommended by the DOE.
CHAPTER 8
GENERAL PROVISIONS
Section 30. Adoption of Waste-To-Energy Technologies
Encouragement of waste-to-energy facilities adoption, such as biogas systems,
with coordination between DOE and DENR.
Section 31. Incentives for RE Host Communities/LGUs
Subsidies from RE projects' royalties/government shares are directed to
subsidize electricity for end-users in host communities/LGUs.
Section 32. Creation of the Renewable Energy Management
Bureau
Establishment: A bureau under the DOE is formed to implement renewable
energy-related policies and programs.
Functions: The REMB develops and maintains data, promotes
commercialization, conducts research, and provides technical support for
renewable energy projects.
CHAPTER 9
FINAL PROVISIONS
Section 33. Implementing Rules and Regulations (IRR)
DOE to promulgate IRR within 6 months.
Consultation with relevant stakeholders.
Section 35. Prohibited Acts
Non-compliance with RPS rules.
Refusal of net metering arrangements.
Falsification of documents for incentives.
Failure to issue required certificates.
Non-compliance with DOE guidelines.
Section 36. Penalty Clause
Penalties for prohibited acts.
Imprisonment or fines, or both.
Administrative fines by DOE.
Without prejudice to existing environmental regulations.
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THANK YOU
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