Tax break on power investments pushed

CEBU, Philippines - Ilocos Norte Representative Ferdinand ‘Bongbong’ Marcos Jr. is urging government to give a “tax break” to power investments, especially those on renewable energy.

“Dapat talaga the government should give tax break to these kinds of investors because its one way for the country to have cheaper power and reliable power,” the 52-year-old Marcos said.

Marcos is supporting and promoting renewable energy efforts, specifically wind power, through initiatives during his three terms as governor and representative of Ilocos from 1998 to 2007.

Last year, the Department of Energy awarded 87 Renewable Energy (RE) contracts to 18 companies nationwide for the development of geothermal, solar, ocean, biomass, hydropower and wind energy resources pursuant to Republic Act 9513 or the Renewable Energy Act of 2008.

The contract involves five conversions from existing service contracts/agreements on geothermal and 17 on hydropower.

New RE projects compose the remainder of the contracts, which altogether are anticipated to generate a total of 4,042 megawatts. The projects entail investments of approximately P90.4 billion.

The companies awarded with the contract include Deep Ocean Power Philippines, Inc. (DOPPI); Trans-Asia Renewable Energy Corp. (TAREC); Constellation Energy Corp (CEC); Century Peak Energy Corp.; PNOC-Renewables Corp.; Energy Development Corp. (EDC); First Gen Bukidnon Power Corp.; Luzon Hydro Corp.; Lucky PPH International, Inc.; First Gen Mindanao Hydro Power Corp.; AV Garcia Power Systems Corp.; Benguet Electric Cooperative, Inc.; Alternergy Philippine Holdings Corp. (APHC); DOST-Industrial Technology Development Institute; and HEDCOR, Inc.

DOE sad that since RA 9513 took effect in January of last year, the total additional power capacity from new RE projects envisioned to be installed within the next five years now runs at 1,636 megawatts. Some 379 megawatts will come from the seven contracts issued to six RE developers in September 2009.

Renewable energy is energy generated from natural resources such as sunlight, wind, rain, tides, and geothermal heat. — Mitchelle L. Palaubsanon/JMO   (FREEMAN NEWS)