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Incentives can lead RP to tap biomass as energy source

abs-cbnNEWS.com | 11/09/2008 11:25 AM

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With a number of incentives laid out for the use of renewable energy, the country can harness a great amount of biomass as energy sources, the government said.

According to a report from the Department of Energy (DOE), as much as 270 megawatts (MW) of power can be generated in ten years with the country's biomass, or plant and animal matter used for fuel and electricity, complementing the government's thrust towards rural electrification and cheaper alternative fuel.

Major biomass energy sources in the country include hog waste, rice husks, bagasse from sugar mills, coconut husks, and coconut shells.
 
The energy committee on energy of the House of Representatives on Wednesday passed the Renewable Energy bill, which provides fiscal and financial incentives for investors to shift to renewable energy and development. It is expected to give way to investments in biomass energy with incentives for private sector participation.

Fiscal incentives include tax credit on domestic capital equipment and services, special realty tax rates on equipment and machinery, a seven-year income tax holiday, tax exemption of carbon credits, duty-free importation, and free distribution and exemption from universal charge of electricity used for own consumption.

It also directs the National Power Corp., and other new power producers to source a certain percentage of their generation from renewable sources like biomass.

A trust fund for renewable energy is also proposed, with the aim to finance the development of biomass, among other renewable energy sources. The fund will come from emission fees from the Clean Air Act, which promotes the state's role of balancing development and environmental protection, 1.5 percent of net annual dividends from the Philippine National Oil Company (PNOC), and incomes of government corporations.

Energy generated from rural area wastes

In the report of DOE renewable energy officers Fortunato Sibaya and Arnulfo Zabala, biomass from hog wastes are said to be the biggest underdeveloped energy resource in the country, with the gross potential to generate 6,300 MW. They said that based on present hog waste generation, around 9.2 million metric tons (MT) every year may be used to generate power from these livestock operations.

Coconut husks--with 4.33 million MT produced yearly--were also said to be very abundant in rural areas, producing an estimated 3,181 MW. Coconut shells, on the other hand, have potential energy capacity of 1,533 MW, with 1.95 million MT generated every year.

Other rural area wastes include rice husks are produced at 2.4 million MT annually, with gross capacity for energy generation at 1,256 MW, and bagasse with 2,373 MW and another 540 MW for co-generation. The estimates were based on information from 39 sugar mills in 16 provinces with an average mining capacity of 4,600 MT a day.