Press Release
December 15, 2007

Angara seeks incentives for renewable energy developers and consumers

Senator Edgardo J. Angara yesterday said that fiscal and non-fiscal incentives shall be granted to individuals engaged in the production of renewable energy resources.

"We must grant incentives to developers and consumers who are involved in the promotion, commercialization and utilization of renewable energy resources to accelerate its development," Angara said during the joint public hearing on Renewable Energy.

He stressed that without a good incentive scheme, developers and consumers will not likely buy this concept. "Giving tax breaks and incentives to producers will encourage participation of the private sector in renewable energy activities."

Under the Renewable Energy Bill, developers, manufacturers, fabricators and suppliers of locally-produced renewable energy equipment shall be afforded tax and duty-free importation of components, parts and materials; tax credit on domestic capital components and income tax holiday and exemption.

"We need to see the Renewable Energy bill as a stand-alone bill because in 10 to 15 years, it will probably constitute 50 percent of our energy resources. We, therefore, need to focus and facilitate the immediate passage of this measure."

He also proposed for the establishment of a legacy fund that will be used to finance research and development, promotion, and utilization of renewable energy resources, allowing it to be self-sustaining.

The Renewable Energy Act aims to promote the development of renewable energy sources to further reduce country's reliance on imported fuels to minimize exposure of the economy to price fluctuations in the international markets.

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