The Department of Energy (DoE) has started setting up the proposed Renewable Energy Trust Fund (RETF) in a bid to further develop and promote the use of renewable energy sources in the country.
Energy Undersecretary Jose M. Layug said the DoE was drafting the rules that would govern the RETF, which was earlier targeted to have an initial seed fund of about P2 billion.
“Setting the RETF is one of the mechanisms required under the Renewable Energy Law. The RETF would be primarily used for research and development and for supporting renewable energy projects in the Philippines. So this is an important mechanism because we are also looking at the possibility of using this for subsidy purposes,” Layug explained.
According to Layug, funding for the RETF would not be a problem as the law identified many sources for this mechanism.
According to documents from the DoE, all proceeds from the emission fees collected from all generating facilities consistent with the Philippine Clean Air Act would go to the RE trust fund.
The DoE could also collect 1.5 percent of the net annual incomes of the Philippine Charity Sweepstakes Office and Philippine Amusement and Gaming Corp.; 1.5 percent of the net annual dividends remitted to the National Treasury by Philippine National Oil Co. and its subsidiaries; and 1.5 percent of the proceeds of the government share collected from the development and use of indigenous non-renewable energy sources.
Aside from these, all the proceeds from the fines and penalties imposed under the Renewable Energy Act would be reverted to the RE trust fund.
Revenues to be generated from the use of the RE trust fund, as well as contributions, grants and donations from the private sector, are also possible sources that can help build funds for the renewable energy sector.
The contributions and donations, however, should be tax-deductible subject to the provisions of the National Internal Revenue Code. To ensure this, the Bureau of Internal Revenue will assist the DoE in formulating the rules and regulations to implement this provision.
Based on the DoE’s National Renewable Energy Plan, the Philippine government is pushing for a three-fold increase in the use of renewable energy resources to 15,000 megawatts within a 20-year period up to 2030, with expected investments seen reaching roughly a trillion pesos.