A bill that aims to boost the Philippines' energy self-sufficiency to 60 percent by 2010 was signed into law by President Gloria Macapagal-Arroyo on Tuesday.

The new act, the Renewable Energy Act of 2008, is also expected to mitigate the global problem of climate change, the presidential office said in a statement.

The administration hailed the enactment of "first and most comprehensive renewable energy law in Southeast Asia" as a means to "accelerate" the exploration of geothermal, hydroelectric, solar, biomass, wind, and ocean energy; and increase the utilization and development of renewable energy.

It will also help the country to tap the soaring investments in renewable energy development worldwide pegged at US$71 billion last year.

"Now, with our Renewable Energy Act, we can move aggressively to develop these resources," said Arroyo, who just returned from a four-day trip to Qatar.

"We became 57 percent self-sufficient in energy in 2007, as we aim now to reach 60 percent by 2010, thanks in part to legislation and in part to the development of our renewable energy resources," the president said.

At present, imported coal contributes 26 percent to the country's power consumption, while another 23 percent comes from imported crude oil, which priced the government US$7.5 billion in 2007.

An analysis by the Renewable Energy Coalition showed renewable energy sources can reduce the country's oil imports by half, and the savings can be used for social and infrastructure programs, the administration said.

The new law also provides a seven-year income tax holiday and tax exemptions for the carbon credits generated from renewable energy sources. A 10 percent corporate income tax, as against the regular 30 percent, is also levied once the income tax holiday expires.

(Xinhua News Agency December 17, 2008)