Business urged: invest in green energy

Councilor Rachel Zozobrado said the signing into law of the Renewable Energy Act 2008 also known as RA 9513 last December 16 should encourage businesses to explore the possibility of investing in renewable energy sources in Davao City.

“This development should even urge Hedcor to look into the possibility of going green considering that it already has the expertise and equipment needed for energy development.” Zozobrado said. It can be recalled that Hedcor came into conflict with the Davao City Water District over the use and development of the Tamugan River.

A total of US$1.23 billion investment in the renewable energy sector is expected by the Philippine government due to the passage of the bill. The country is also expected to reduce the Philippine’s energy self sufficiency rate from 56.5% in 2005 to 60% by 2010 once the law is fully implemented.

Zozobrado said the reduction of fuel prices in the world market is only temporary and it is imperative that energy-dependent countries like the Philippines find alternative sources of energy which will not only save them dollars but will also help the environment.

She said investors can tap alternative and renewable energy like wind, solar, ocean, hydropower and biomass energy. Projections by the Department of Energy shows that the country can save $1.2 billion worth of energy in the next ten year if it is able to get an additional 2.500 megawatts from alternative and renewable energy sources.

If Hedcor’s projection of an impending power crisis is true, she said, then investors should take advantage of the various incentives offered by the Energy Bill and explore the development of renewable energy sources for major cities in the Philippines like Davao.

“With the implementation of the law companies that will invest in renewable energy will be granted a 7-year income tax exemption aside of course from the other incentives provided by the law,” Zozobrado said.

RA 9513 exempts from taxation carbon credits generated from renewable sources. Investors who will invest in renewable energy sources will also enjoy a reduced 10% corporate income tax form the original 30% income tax with the expiration of their income tax holiday. Facilities dedicated to renewable energy will also be given a realty tax cap of 1.5% for facilities and equipment used to produce renewable energy.