renewable energy act of 2008

Question 1

What is the primary goal of the Renewable Energy Act of 2008 (RA 9513)?

Answer 1

1. To promote the development and utilization of renewable energy resources.

Question 2

What are the main objectives of the Act in terms of energy self-reliance and environmental protection?

Answer 2

1. To achieve energy self-reliance by reducing the country’s dependence on fossil fuels and minimizing exposure to price fluctuations in international markets.
2. To encourage the use of renewable energy as a tool to prevent or reduce harmful emissions, balancing economic growth with environmental protection.

Question 3

How does the Act aim to reduce the Philippines’ dependence on fossil fuels?

Answer 3

1. By accelerating the exploration and development of renewable energy resources, such as biomass, solar, wind, hydro, geothermal, and ocean energy.

Question 4

What are the key policy statements outlined in the “Declaration of Policies” section?

Answer 4

1. Accelerate exploration and development of renewable energy resources.
2. Increase the utilization of renewable energy.
3. Encourage the development and utilization of renewable energy for environmental protection.
4. Establish infrastructure and mechanisms to carry out the Act’s mandates.

Question 5

What types of renewable energy resources are specifically targeted by the Feed-in Tariff System?

Answer 5

Wind, solar, ocean, run-of-river hydropower, and biomass.

Question 6

1. What is the “Renewable Energy Market (REM)” and what is its purpose?

Answer 6

• The REM is a market where Renewable Energy Certificates (RECs) are traded, representing the energy generated from eligible RE facilities. It helps facilitate compliance with the RPS.

Question 7

1. Define “Renewable Portfolio Standards (RPS)” and explain its role in promoting renewable energy.

Answer 7

• RPS requires electricity suppliers to source a certain percentage of their energy from eligible renewable energy resources, promoting the development and use of renewable energy.

Question 8

1. What is the “Renewable Energy Service (Operating) Contract (RE Contract)” and how does it work?

Answer 8

• The RE Contract is a service agreement between the government (through the DOE) and RE Developers, granting exclusive rights to explore and develop a specific RE area. It involves two stages: pre-development and development/commercial.

Question 9

Explain the concept of “energy self-reliance” as it relates to the Act’s objectives.

Answer 9

1. Energy self-reliance refers to the ability of a country to meet its energy needs primarily through domestically produced sources, reducing dependence on imports and external factors.

Question 10

1. Explain the difference between “On-Grid Systems” and “Off-Grid Systems” in the context of electricity distribution.

Answer 10

• On-Grid Systems: Connected to the main electricity grid, allowing for power sharing and transmission.
• Off-Grid Systems: Not connected to the main grid, relying on independent power generation and distribution.

Question 11

What are the four key policy statements regarding renewable energy development outlined in the Act?

Answer 11

• Accelerate exploration and development of renewable energy resources.
• Increase the utilization of renewable energy.
• Encourage the development and utilization of renewable energy for environmental protection.
• Establish infrastructure and mechanisms to carry out the Act’s mandates.

Question 12

What is the primary responsibility of the Department of Energy (DOE) in relation to the Act?

Answer 12

To act as the lead agency for promoting and developing renewable energy.

Question 12

How does the Act aim to balance economic growth with environmental protection?

Answer 12

By encouraging renewable energy as a tool to prevent or reduce harmful emissions, balancing economic growth with the protection of health and the environment.

Question 13

What is the purpose of the Renewable Portfolio Standard (RPS) outlined in the Act?

Answer 13

To require electricity suppliers to source a certain percentage of their energy from eligible renewable sources.

Question 14

How does the Act address the issue of price fluctuations in international energy markets?

Answer 14

1. By minimizing the country’s exposure to price fluctuations in the international markets through the adoption of sustainable energy development strategies.

Question 15

What is the purpose of the Renewable Portfolio Standard (RPS) outlined in the Act?

Answer 15

1. To require electricity suppliers to source a certain percentage of their energy from eligible renewable sources.

Question 16

How does the RPS contribute to the growth of the renewable energy industry in the Philippines?

Answer 16

1. By creating a market demand for renewable energy, encouraging investment and development in the sector.

Question 17

What is the role of the National Renewable Energy Board (NREB) in setting the RPS?

Answer 17

• The NREB, in consultation with stakeholders, sets the minimum percentage of generation from eligible renewable energy resources for each grid

Question 18

1. What is the Feed-in Tariff System, and how does it incentivize the development of emerging renewable energy resources?

Answer 18

• The Feed-in Tariff System provides priority grid connections, purchase, and payment for electricity generated from emerging renewable energy sources, encouraging investment in these technologies.

Question 19

1. What is the Renewable Energy Market (REM), and how does it facilitate compliance with the RPS?

Answer 19

• The REM is a market where Renewable Energy Certificates (RECs) are traded, representing the energy generated from eligible RE facilities. It helps facilitate compliance with the RPS.

Question 20

1. Explain the role of the Philippine Electricity Market Corporation (PEMC) in establishing and implementing the REM.

Answer 20

• PEMC establishes a Renewable Energy Registrar to issue, keep, and verify RE Certificates for energy generated from eligible RE facilities. These certificates are used for compliance with the RPS.

Question 21

1. What is the Green Energy Option, and how does it empower end-users to choose renewable energy?

Answer 21

• The Green Energy Option allows end-users to choose renewable energy as their source of electricity, giving them a direct choice in supporting renewable energy projects.

Question 22

1. What is net-metering, and how does it benefit end-users with RE systems?

Answer 22

• Net-metering allows end-users with RE systems to sell excess electricity generated back to the grid, receiving credit for the energy they contribute. This can reduce their electricity bills and encourage the adoption of RE.

Question 23

1. How does the Act address the development of transmission and distribution systems to accommodate renewable energy projects?

Answer 23

• The Act mandates TRANSCO (or its successors) and DUs to include necessary connection facilities for RE-based power facilities in their development plans.
• It ensures that these facilities are subject only to ancillary services related to their connections.

Question 24

1. What is the role of the National Power Corporation (NPC) in providing electricity to off-grid areas?

Answer 24

* NPC-SPUG (or its successors) is responsible for providing missionary electrification to off-grid areas, sourcing a minimum percentage of their generation from RE resources.

Question 25

1. Which government agency is responsible for setting and enforcing environmental regulations for RE projects?

Answer 25

* The Department of Environment and Natural Resources (DENR)

Question 26

1. What are the incentives provided to renewable energy developers under the Act?

Answer 26

* Income Tax Holiday (ITH) * Duty-free importation of RE machinery, equipment, and materials. * Special realty tax rates on RE equipment and machinery. * Net Operating Loss Carry-Over (NOLCO) * Corporate tax rate after the ITH period. * Accelerated depreciation. * Zero percent Value-Added Tax (VAT) on RE fuel or power sales. * Cash incentive for RE developers in missionary electrification areas. * Tax exemption on carbon credits. * Tax credit on domestic capital equipment and services.

Question 27

1. How does the Act address the issue of net operating losses (NOLCO) for RE developers?

Answer 27

* RE developers can carry over their net operating losses from the first three years of operation as deductions from gross income for the next seven consecutive taxable years.

Question 28

1. What is the purpose of the National Renewable Energy Board (NREB)?

Answer 28

* To advise the DOE on matters related to renewable energy.

Question 29

1. How is the NREB composed, and who appoints its members?

Answer 29

* The NREB is composed of a Chairman and one representative each from the DOE, DTI, DOF, DENR, NPC, TRANSCO, PNOC, PEMC, and one representative each from the following sectors: RE Developers, Government Financial Institutions (GFIs), private distribution utilities, electric cooperatives, electricity suppliers, and nongovernmental organizations. The members are appointed by the President of the Philippines.

Question 30

1. What are the key powers and functions of the NREB?

Answer 30

* Evaluate and recommend RPS and minimum RE generation capacities. * Recommend actions to implement the National Renewable Energy Program (NREP). * Monitor and review the implementation of the NREP. * Oversee the utilization of the RETF. * Perform other functions necessary to achieve the Act's objectives.

Question 31

1. How is the Renewable Energy Trust Fund (RETF) established and administered?

Answer 31

* The RETF is established as a special account in any of the GFIs and is administered by the DOE.

Question 32

1. What are the sources of funding for the RETF?

Answer 32

* Proceeds from emission fees. * A portion of the net annual income of the Philippine Charity Sweepstakes Office, Philippine Amusement and Gaming Corporation, and the Philippine National Oil Company. * Contributions, grants, and donations. * Revenue generated from the utilization of the RETF. * Proceeds from fines and penalties imposed under the Act.

Question 33

1. What is the role of government financial institutions in supporting RE projects?

Answer 33

* Government financial institutions like the Development Bank of the Philippines (DBP), Land Bank of the Philippines (LBP), and Phil-Exim Bank are mandated to provide preferential financial packages for RE projects.

Question 34

1. What are the prohibited acts under the Act, and what are the penalties for violating them?

Answer 34

* Prohibited acts include noncompliance with RPS rules, refusal to engage in net metering, falsification of documents, failure to issue certificates, and noncompliance with established guidelines. * Penalties include imprisonment, fines, or both, at the discretion of the court. The DOE is also empowered to impose administrative fines.

Question 35

* Prohibited acts include noncompliance with RPS rules, refusal to engage in net metering, falsification of documents, failure to issue certificates, and noncompliance with established guidelines. * Penalties include imprisonment, fines, or both, at the discretion of the court. The DOE is also empowered to impose administrative fines.

Answer 35

* The Joint Congressional Power Commission, created under Republic Act No. 9136, exercises oversight powers over the implementation of the Act.