As reported by Reuters, the Philippines are now issuing a new renewable energy legislation that might boost the development of the country’s geothermal resources.

The law, which is expected to take effect as early as next month, include a 7-year income tax holiday and aims at making renewable energy account for about 40 percent in the power mix of the country, today it is about 33 percent.

As Reuters reports: “The law provides tax breaks to prospective investors in hydropower, solar, geothermal, ocean and biomass energy, offering the Philippines alternative sources of energy to meet rising power demand.

Among the fiscal incentives available to potential investors include a seven-year income tax holiday and duty free importation of equipment, said Marasigan.

The guidelines will take effect 15 days after they are signed and published in major newspapers, he said. Lorenzo Tan, president of conservation group WWF-Philippines, said the imminent release of the guidelines would be good news to “many investors waiting in the wings.”

“I think this is going to be a very dramatic time because we’re going to see a lot of people announcing very innovative investment in renewable energy, from biomass to hydropower to wind to methane,” Tan said.

About 33 percent of the Philippines’ energy mix is comprised of renewable energy, including geothermal and hydro, said Marasigan. The goal is to increase that to 40 percent in around 10 years, he said, citing the long gestation period for renewable projects.”

Source: Reuters