Lecture 1 Chapter 5,6,7,8,9 Elective 3 Flashcards
The government share on existing and new RE development projects shall
be equal to __________ of the gross income of RE resource
developers resulting from the sale of renewable energy produced and such
other income incidental to and arising from the renewable energy
generation, transmission, and sale of electric power except for indigenous
geothermal energy, which shall be at one and a half percent _________ of gross
income
1% & 1.5%
To further promote the development of RE projects, the government hereby
waives its share from the proceeds of micro-scale projects for communal
purposes and non-commercial operations, which are not greater than ___________ kilowatts
100
Chapter 5 is known as ________.
Government Share
Chapter 6 is known as ________.
Environmental Compliance
All RE explorations, development, utilization, and RE systems operations shall
be conducted in accordance with existing environmental regulations as
prescribed by the __________ and/or any other concerned government agency.
DENR
Chapter 7 is known as ________.
General Incentives
To whom RE developers must obtain an endorsement to be exempted for the Duty of importation cost?
DOE
Incentives and exemption that RE developers enjoys are the following:
a. Income Tax Holiday and
b. Duty free from importation (Tariffs)
c. Special Realty Tax Rates on Equipment and Machinery
d. Net Operating Loss Carry-Over (NOLCO)
e. Corporate Tax Rate
f. Accelerated Depreciation.
g. Zero Percent Value-Added Tax Rate
h. Cash Incentive of Renewable Energy Developers for Missionary Electrification
i. Tax Exemption of Carbon Credits
j. Tax Credit on Domestic Capital Equipment and Services
What condition does the DOE requires for the endorsement?
(i) If made to another RE developer enjoying tax and duty
exemption on imported capital equipment
(ii) If made to a non-RE developer, upon payment of any taxes and
duties due on the net book value of the capital equipment to be
sold
(iii) Exportation of the used capital equipment, machinery, spare
parts or source documents or those required for RE development
(iv) For reasons of proven technical
obsolescence
Acceptable accelerated depreciation methods
- Declining Balance Method
- Sum-of-the years digit method
Certificate that RE developer must secure to DENR
Environmental Compliance Certificate (ECC)
Power and electricity generated through the RES for the
generator’s own consumption and/or for free distribution in the
off-grid areas shall be exempted from the payment of the universal
charge provided for under Section 34 of Republic Act No. 9136.
Exemption from the Universal Charge
A registered renewable energy developer producing power
and electricity from an intermittent RE resource may opt to
pay the transmission and wheeling charges of TRANSCO or
its successors-in-interest on a per kilowatt-hour basis at a
cost equivalent to the average per kilowatt-hour rate of all
other electricity transmitted through the grid.
Payment of Transmission Charges
The tax exemptions and/or incentives provided for in Section
15 of this Act shall be availed of by registered RE Developer of
hybrid and cogeneration systems utilizing both RE sources and
conventional energy: Provided, however, That the tax
exemptions and incentives shall apply only to the equipment,
machinery and/or devices utilizing RE resources.
Hybrid and Cogeneration Systems