AN ACT PROMOTING THE

DEVELOPMENT, UTILIZATION
AND COMMERCIALIZATION OF
RENEWABLE ENERGY
RESOURCES AND FOR OTHER
PURPOSES

REPUBLIC ACT NO. 9513

R. A. No. 9513: The Renewable

Energy Act of 2008

Accelerate the development of the

countrys renewable energy resources
by providing fiscal and non-fiscal
incentives to private sector investors

-One of the most

comprehensive and forward
looking RE law in the world

- Provides substantial
fiscal and nonfiscal

incentives

Declaration of Principles

ACCELERATE THE EXPLORATION AND

THE DEVELOPMENT OF RENEWABLE
ENERGY RESOURCES
Achieve energy self-reliance

- To reduce the countrys

dependence on fossil fuels
- Minimize the countrys
exposure to price fluctuations.

Declaration of Principles
Adoption of Clean Energy

to mitigate Climate Change

Promote socio-economic
development in rural areas

INCREASE THE UTILIZATION OF

RENEWABLE ENERGY BY
PROVIDING FISCAL AND NON

Major Challenge
How to balance:
Attracting and promoting
investment in Renewable
Energy
-While Minimizing the burden to
the end-users

Scope of the Law

This Act shall establish
the framework for the
accelerated
development and
advancement of
renewable energy
resources, and the
development of a

Definition of Terms
Biomass Energy Systems
energy systems which use
biomass resources to
produce steam, heat,
mechanical power or
electricity through either
thermochemical or physicochemical process.

Definition of Terms
Co-generation Systems
refer to facilities which
produce electrical or
mechanical energy and
forms of useful thermal
energy such as heat or
steam used for industrial
and cooling purposes.

Definition of Terms
Distributed Generation
refers to system of small
generation entities
supplying directly to the
distribution grid, any of
which shall not exceed
100kw in capacity.

Definition of Terms
Distribution Utility any
electric cooperative,
private corporation,
government-owned utility
or existing LGU which has
an exclusive franchise to
operate a distribution
system.

Definition of Terms
Generation Company
any person or entity
authorized by the ERC
(Energy Regulatory
Commission) to operate
facilities used in the
generation of electricity.

Definition of Terms
Geothermal
Energy Systems
machines or other
equipment that
converts
geothermal
energy into

Definition of Terms
Government Share the
amount due the National
Government and LGU
from exploitation,
development and
utilization of naturallyoccuring renewable

Definition of Terms
Grid refers to the
high voltage
backbone system
of interconnected
transmission lines,
substations, and
related facilities
located in each

Definition of Terms
Hybrid Systems any
power or energy
generation facility which
makes use of two or more
types of technology
utilizing both
conventional and

Definition of Terms
Hydroelectric
Power Systems
refer to waterbased energy
systems which
produce
electricity by
utilizing kinetic

Definition of Terms
Missionary Electrification
refers to the provision
of basic electricity service
in unviable areas with the
aim of bringing
operations in these areas
to viability levels.

Definition of Terms
Net Metering refers to a
system, appropriate for
distributed generation, in
which a distribution grid
user has a two-way
connection on the grid
and is only charged for
his net electricity

Definition of Terms
Ocean Energy
Systems refer
to energy
systems which
convert ocean or
tidal current,
ocean thermal
gradient, or

Definition of Terms
Off-Grid Systems refer
to electrical systems not
connected to the wires
and related facilities on
the grid systems of the
Philippines.

Definition of Terms
On Grid Systems refers
to electrical systems
composed of
interconnected
transmission lines,
distribution lines,
substations, and related
facilities for the purpose

Definition of Terms
Power Applications refer
to renewable energy
systems or facilities that
produce electricity.
Registered RE Developer
refers to a RE Developer
duly registered with the

Definition of Terms
Renewable Energy Market
(REM) refers to the
market where the trading
of the RE certificates
equivalent to an amount
of power generated from
RE resources is made.

Definition of Terms
Renewable Energy
Service (Operating)
Contract (RE Contract)
the service agreement
between the government
through the DOE and RE
Developer over a period
in which the RE Developer

Definition of Terms
Renewable Energy
Systems (RE Systems)
refer to energy systems
which convert RE
resources into useful
energy forms like
electrical and mechanical.

Definition of Terms
Solar Energy
System
refer to
energy
system, which
convert solar
energy into
thermal or

Definition of Terms
Transmission of Electricity
refers to the
conveyance of electric
power through
transmission line as
defined under RA 9136 by
TRANSCO or its buyer in
accordance with its

Definition of Terms
Small Power Utilities
Group (SPUG) refers to
the functional unit of the
NPC mandated under RA
9136 to pursue
missionary electrification
function.

Definition of Terms
Supplier any person or
entity authorized by the
ERC to sell, broker,
market or aggregate
electricity to the endusers.

Definition of Terms
Wholesale Electricity Spot
Market (WESM) refers to
the wholesale electricity
spot market created
pursuant to RA 9136.

Lead Agency
The
Department
of Energy
(DOE) shall
be the lead
agency
mandated to
implement
the

Policy Mechanisms
Enhanced

Competitiveness:
Mandatory Utilization of

RE Resources
Biofuels Mandate
Renewable Portfolio
Standard (RPS)

Policy Mechanisms
Enhanced

Competitiveness:
Other Market Options
Net Metering Concept
Green Energy Option

Policy Mechanisms
Lowering

of investment

costs
Fiscal Incentives
Income Tax Holiday and Low Income Tax
Rate
Reduced Government Share
Duty-free Importation of Equipment and
VAT-zero Rating
Tax Credit on Domestic Capital Equipment
Special Realty Tax Rate on Equipment
and Machinery

Renewable Portfolio
Standards (RPS)
a

market-based policy
that requires electricity
suppliers to source a
certain portion of their
supply from RE.

Renewable Portfolio
Standards (RPS)
Purpose:

To contribute to the growth of

the RE industry by
diversifying energy supply
To help address

environmental concerns by
reducing GHG emissions.

Feed-In Tariff System

Feed-in-tariff

that sets a
fixed price for electricity
sourced from renewable
energy for 12 years.

Payment

is guaranteed on
a fixed rate per kwh

Feed-In Tariff System

PURPOSE:

To accelerate the development

of emerging renewable energy

resources, a feed-in tariff
system for electricity produced
from wind, solar, ocean,
hydropower and biomass is
hereby mandated.

Feed-In Tariff System

COVERAGE:

On Grid areas only

Emerging technologies such

as biomass, solar, run off

rivers, hydro, ocean and
wind, excluding generation
for own use.

Renewable Energy Market

The

Renewable Energy Market or

REM is where RE power can be
traded, purchased or sold, as
part of the infrastructure
support to facilitate compliance
with the RPS mandate.

It

is envisioned to be a module
of, linked to and be a function of
the Wholesale Electricity Spot

Renewable Energy Market

PURPOSE:

To expedite compliance with

the establishment of the

Renewable Portfolio
Standards (RPS).

Green Energy Option

Green

Energy Option gives

consumers the choice to use RE.
Information to End Users:
End users will be informed by way

of its monthly electric bill how

much of the monthly energy
consumption and generation
charged is provided by RE
Facilities.

Net Metering for Renewable

Energy
Allows

distribution grid users

who may produce RE power
and be appropriately
credited with its contribution
to the grid.

Transmission and Distribution

System Development
TRANSCO or its successors-ininterest 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.

Government Share
The government share on existing and new
RE development projects shall be equal to
one percent (1%) 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
(1.5%) of gross income.

Compliance with
Environmental Regulations
All RE explorations,
development, utilization,
and RE systems operations
shall be conducted in
accordance with existing
environmental regulations
as prescribed by the DENR
and/or any other concerned

Incentives for Renewable

Energy Projects and Activities

Environment Compliance
Certificate

RE Developer should
secure the
Environmental
Compliance Certificate
(ECC) from the
corresponding regional

Exemption from the

Universal Charge

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

Payment of Transmission
Charges
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

Hybrid and
Cogeneration Systems
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

Incentives for
RE Commercialization

(a) Tax and Duty-free

Importation of
Components, Parts and
Materials
(b) Tax Credit on Domestic
Capital
Components, Parts and
Materials

Incentives for Farmers Engaged in

the Plantation of Biomass Resources

Entitlement

to

duty-free
importation
Exemption from
Value-Added Tax
(VAT) on all types of
agricultural inputs,

Tax Rebate for Purchase of

RE Components
To

encourage the adoption of

RE technologies, the DOF, in
consultation with DOST, DOE,
and 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

Period of Grant of Fiscal

Incentives

The
National
Renewable
Energy
Board, in coordination with the
Department of Energy, shall submit a
yearly report on the implementation
of this Act to the Philippine Congress,
through
the
Joint
Congressional
Power Commission, every January of
each year following the period in
review, indicating among others, the
progress of RE development in the
country and the benefits and impact
generated by the development and

Registration of RE Developers
and local manufacturers,
fabricators and suppliers of
locally-produced renewable
energy equipment

 Registration

with
the
Department of Energy, through
the
Renewable
Energy
Management Bureau.
Upon
registration,
a
certification shall be issued to
each RE Developer and local
manufacturer, fabricator and
supplier of locally-produced
renewable energy equipment

Certification from the DOE

The DOE through the Renewable
Energy
Management
Bureau
shall issue the
certification
fifteen (15) days upon request of
the renewable energy developer
or manufacturer, fabricator or
supplier.

Creation of the National

Renewable Energy Board (NREB)
The

NREB shall be composed

of:
a) Chairman;
b) One representative each
from
the following
agencies:
DOE, DTI, DOF, DENR, NPC,
TRANSCO or its

Creation of the National

Renewable Energy Board (NREB)
c) One representative each from
these sectors:
RE
Developers,
Government
Financial
Institutions
(GFIs),
private
distribution
utilities,
electric cooperatives, electricity
suppliers and non-governmental
organizations, duly endorsed by
their
respective
industry
associations
and
all
to
be
appointed by the President of the

Functions of the National

Renewable Energy Board (NREB)
(a) Evaluate and recommend to the
DOE the mandated RPS and minimum
RE generation capacities in off-grid
areas, as it deems appropriate;
(b) Recommend specific actions to
facilitate the
implementation of the National
Renewable Energy Program (NREP) to
be executed by the DOE and other
appropriate agencies;

Functions of the National

Renewable Energy Board (NREB)
(c)
Monitor
and
review
the
implementation
of
the
NREP,
including compliance with the RPS
and
minimum
RE
generation
capacities in off-grid areas;
(d) Perform such other functions,
as may be necessary, to attain the
objectives of this Act.

Financial Assistance Program

Adoption of Waste-To-Energy
Technologies
The DOE shall, where practicable,
encourage the adoption of waste-toenergy facilities such as, but not
limited to, biogas systems. The DOE
shall, in coordination with the DENR,
ensure
compliance
with
this
provision.

Incentives for RE Host

Communities or LGUs
Eighty percent (80%) of the share from royalty
and/or government share of RE host
communities/LGUs from RE projects and
activities shall be used directly to subsidize the
electricity consumption of end users in the RE
host
communities/LGUs
whose
monthly
consumption do not exceed one hundred (100)
kwh. The subsidy may be in the form of
rebates, refunds and/or any other forms as may
be determined by DOE, DOF and ERC, in
coordination with NREB.

Functions of the REMB

a) Implement policies, plans and programs related to
the accelerated development, transformation,
utilization and commercialization of renewable
energy resources and technologies;
b) Develop and maintain a centralized, comprehensive
and unified data and information base on renewable
energy resources to ensure the efficient evaluation,
analysis, and dissemination of data and information
on renewable energy resources, development,
utilization, demand and technology application;

Functions of the REMB

c) Promote the commercialization/application
of renewable energy resources including new
and emerging technologies for efficient and
economical transformation, conversion,
processing, marketing and distribution to end
users;
d) Conduct technical research, socioeconomic and environmental impact studies
of renewable energy projects for the
development of sustainable renewable energy
systems;

Functions of the REMB

e) Supervise and monitor activities of
government and private companies and entities
on renewable energy resources development and
utilization to ensure compliance with existing
rules, regulations, guidelines and standards;
f) Provide information, consultation and technical
training and advisory services to developers,
practitioners and entities involved in renewable
energy technology and develop renewable
energy technology development strategies; and

Functions of the REMB

g) Perform other functions that may
be necessary for the effective
implementation of this Act and the
accelerated
development
and
utilization of the renewable energy
resources in the country.

Renewable Energy
Management Bureau
NREB

Technical Services and

Management Division
Biomass Energy Management Division
Hydropower & Ocean Energy
management Division
Geothermal Energy Management
Division
Solar & Wind Energy Management
Division

Congressional Oversight
Upon

the effectivity of this Act,

the Joint Congressional Power
Commission created under
Section 62 of Republic Act No.
9136, otherwise known as the
"Electric Power Industry Reform
Act of 2001" shall exercise
oversight powers over the
implementation of this Act.

Prohibited Acts
The following acts shall be
prohibited:
(a)

Non-compliance or violation
of the RPS rules;
(b) Willful refusal to undertake
net metering arrangements with
qualified distribution grid users;

Prohibited Acts
(c)

Falsification or tampering of public

documents or official records to avail of
the fiscal and non-fiscal incentives
provided under this Act;
(d) Failure and willful refusal to issue
the single certificate referred to in
Section 26 of this Act; and
(e) Non-compliance with the
established guidelines that DOE will
adopt for the implementation of this
Act.

Prohibited Acts
In

the case of association,

partnership or corporations,
the penalty shall be imposed
on the partner, president,
chief operating officer, chief
executive officer, directors or
officers responsible for the
violation.

Prohibited Acts
The

commission of any prohibited acts

provided for under Section 35, upon
conviction thereof, shall suffer the
penalty of:
imprisonment of from one (1) year to five (5)

years,
or a fine ranging from a minimum of One
Hundred Thousand Pesos (P100,000.00) to
One Hundred Million Pesos (P100,000,000.00),
or twice the amount of damages caused or
costs avoided for non-compliance, whichever
is higher,
or both upon the discretion of the court.

Penalty Clause
Any

person who willfully commits

any of the prohibited acts
enumerated under this Act, shall be
imposed with the penalties provided
herein. Any person, who willfully
aids or abets the commission of a
crime prohibited herein or who
causes the commission of any such
act by another shall be liable in the
same manner as the principal.

BIOFUELS ACT OF
2006 (RA No. 9367)
AN ACT TO DIRECT USE OF BIOFUELS,
ESTABLISHING FOR THIS PURPOSE
THE
BIOFUEL
PROGRAM,
APPROPRIATING FUNDS THEREFOR,
AND FOR OTHER PURPOSES

Declaration of Policy
To

reduce
dependence
on
imported fuels with due regard
to the protection of public
health, the environment and the
natural ecosystems consistent
with the countrys sustainable
economic growth that would
expand
opportunities
for
livelihood by mandating the use
of biofuels

USES OF BIOFUEL

Develop and utilize

indigenous renewable
and sustainablesources clean energy
sources to reduce
dependence on
imported oil

USES OF BIOFUEL

Mitigate
toxic and
greenhouse
gas (GSG)
emissions
2.

USES OF BIOFUEL

3. Increase rural
employment and
income

USES OF BIOFUEL
4. Ensure the
availability of
alternative and
renewable clean
energy without any
detriment to the
natural ecosystem,
biodiversity and
food reserves of the
country

What is BIOFUEL?
It

refers to the bioethanol and

biodiesel and other fuels made
from biomass and primary
used
for
motive,
thermal
power generation, with quality
specifications in accordance
with the Philippine National
Standards (PNS).

What is BIOMASS?
It

refers to any organic matter,

particularly cellulosic or lignocellulosic matter, which is
available on a renewable or
recurring basis

BIOMASS

What is FEEDSTOCK?

What is DIESEL?
Refer

to the refined petroleum

distillate, which may contain small
amount of hydrocarbon additives
to improve ignition quality or
other characteristic, suitable for
compression ignition engine and
other suitable types of engines
with quality specifications in
accordance with PNS.

Harmful Gasoline
Additives
Methyl

Tertiary Butyl Ether

(MTBE)
Oxygenates-substances

which
when added to gasoline increase
the amount in that gasoline
blend

Phasing out of the Use of Harmful

Gasoline Additives and/or
Oxygenates
Within

6 months, DOE shall

gradually phase out the use of
harmful gasoline additives such
as but not limited to MTBE.

Mandatory Use of Biofuels

5.1 Within two years, at least 5%
bioethanol
shall
comprise
the
annual total volume of gasoline fuel
actually sold and distributed by
each and every oil company in the
country; subject to requirement that
all bioethanol blended gasoline shall
contain a minimum of 5% bioethanol
fuel by volume provided that the
bioethanol blend conforms to PNS.

Mandatory Use of Biofuels

5.2 Within four years, the NBB
created
is
empowered
to
determine
the
feasibility
thereafter recommend to DOE to
mandate a minimum 10 % blend
of ethanol by volume into all
gasoline into all gasoline fuel
distributed and sold by each and
every oil company.

Mandatory Use of Biofuels

5.3 Within three months, a minimum of 1 %
biodiesel by volume shall be blended into all
diesel engine fuels sold in the country :
provided that the biodiesel blend conforms to
PNS.
Within two years, the NBB created is
empowered
to
determine
the
feasibility
thereafter recommend to DOE to mandate a
minimum 2% blend of biodiesel by volume
which may be increased taking into account
considerations including but not limited to
domestic supply and availability of locally
sourced biodiesel component.

Status of Mandatory Use of

Biodiesel Blend
May

2007 1 %
February 2009- 2%
August 2009 to presentE10 (10 %)
Source: DOE Accomplishments from DOE Official
Website

Incentive Scheme
a) Specific Tax
Exempt for local or
imported
biofuels
component
b) Value Added Tax
Exempt for the sale
of raw material used
in the production of
biofuels

Incentive Scheme
c) Water Effluents
Exempt from waste water charges
d) Financial Assistance
GFIs accord high priority to
extend
financing
to
Filipino
citizens or entities (60% of CS
belongs to Filipino/s) that shall
engage in activities involving
production storage, handling and
transport
of biofuel feedstock,
including the blending of biofuels
with petroleum, as certified by
DOE.

Powers and Functions of

Department of Energy
1. Formulate the implementing rules and
regulations under this Act;
2.
Prepare
the
Philippine
Biofuel
Program consistent with the Philippine
Energy
Plan
and
taking
into
consideration
the
DOEs
existing
biofuels program;
3.
Establish
technical
fuel
quality
standards for biofuels and biofuelblended gasoline and diesel which
comply with PNS;

Powers and Functions of

Department of Energy
4.
5.
6.

7.

Establish guidelines for the transport,

storage and handling of biofuels;
Impose fines and penalties
Stop the sale of biofuels and biofuelblended gasoline and diesel that are
not conformity with the specifications
provideds provided under this Act;
Conduct an information campaign to
promote the use of biofuels.

Creation of National Biofuel

Board
Composition

Chairman Secretary of Department of Energy (DOE)

Members:
Department of Trade and Industry (DTI)
Department of Science and Technology (DOST)
Department of Agriculture (DA)
Department of Finance (DOF)
Department of Labor and Employment (DOLE)
Philippine Coconut Authority (PCA)
Sugar Regulatory Administration (SRA)

The Board shall be assisted by a Technical Secretariat attached to the

OSEC of DOE
EXECUTIVE COMMITTEE
MEMBERS COME FROM BOARD MEMBERS.THEY ARE REPRESENTED BY
THEIR RESPECTIVE ALTERNATE UNDERSECRETARIES.

Powers and Functions of

NBB
Monitor the implementation of, and
evaluate for further expansion the NBP;
2. Monitor the supply and utilization of
biofuels
and
biofuel-blends
and
recommend appropriate measures in
cases of shortage of feedstock supply;
3. Review and recommend to DOE the
adjustment in the minimum mandated
biofuel blends subject to availability of
locally sourced biofuels;
1.

Powers and Functions of

NBB
4.

5.

6.

Recommend to DOE a program that will

ensure the availability of alternative fuel
technology;
Recommend to DOE the use of biofuelblends in air transport taking into account
safety and technical viability; and
Recommend specific actions to be executed
by DOE and other appropriate government
agencies concerning implementation of NBP,
including
its
economic
,
technical,
environment and social impact.

Security of Domestic Sugar

Supply

Role of Government
Agencies

Prohibited Acts
Diversion

of biofuels, whether
locally produced or imported, to
purposes
other
than
those
envisioned in this Act;

Sale

of biofuel-blended gasoline
or diesel that fails to comply
with the minimum biofuel-blend
by volume in violation of the
requirement under Section 5 of

Prohibited Acts
Distribution,

sale and use of

automotive
fuel
containing
harmful additives;

Noncompliance

with
the
established guidelines of the
PNS and DOE adopted for the
implementation of this Act; and

False

labelling

of

gasoline,

Penal Provisions
Who are liable?
Principal-any
person,
who
willfully aids or abets in the
commission
of
a
crime
prohibited therein
Associations,

Partnerships
Corporations Officers

or

Penal Provisions
What are the penalties?
One year to 5 years imprisonment
and a fine ranging from a minimum
of
P1, 000,000.00 to P5, 000,000.00
DOE

shall confiscate any amount of

such products that fail to comply
with the requirements of DOE

Penal Provisions
What are the penalties?
DOE are empowered to stop and
suspend the operation of business
for refusal to comply with the order
or instruction of DOE Secretary in
the exercise of his functions under
this Act;

DOE is also empowered to impose

administrative fines and penalties

Appropriations
Such sums as may be necessary
for the initial implementation of
this Act shall be taken from the
current appropriations of the
DOE.
Thereafter,
the
fund
necessary
to
carry
out
provisions of this Act shall be
included in the annual GAA

Appropriations
Fiscal Year

Appropriations

2008

P 89,874,000.00

2009

20, 990,000.00

2010

22, 407,000.00

2011

22, 407,000.00

2012

17,336,000.00

2013

17, 627,000.00

2014

16, 620,000.00

2015

9, 320,000.00

2016

10,232,000.00

Congressional Oversight
Committee
CONGRESSIONAL OVERSIGHT COMMITTEE ON BIOFUELS (Pursuant to
Section 16 of Republic Act No. 9367)
Senate Panel:
Chair: OSMEA III, Sergio R.(Chair, Committee on ENERGY)
Members:
POE, Grace
GUINGONA III, Teofisto L.
HONASAN II, Gregorio B.
Ex-Officio Members:
Chair, Committee on AGRICULTURE AND FOOD: VILLAR, Cynthia A.
Chair, Committee on TRADE COMMERCE AND ENTREPRENEURSHIP:
AQUINO, Paolo Benigno IV Bam
House Panel:
UMALI, Reynaldo V.
MENDOZA, Mark Llandro L.
VILLAR, Mark A.
COSALAN, Ronald M.
AMATONG, Rommel C.
AGARAO, Benjamin Jr. C.
COLMENARES, Neri J.

Benefits of Biofuel Workers

This

Act shall not in any way result in

the forfeiture or diminution of existing
benefits enjoyed by the sugar workers
as prescribed under the RA No. 6982,
or the Sugar Amelioration Act of 1991.
In case sugarcane shall be used as
feedstock.
The NBB shall establish a mechanism
similar to that provided under RA No.
6982 for the benefits of other biofuel
workers.