To be labelled the National Renewable Energy Board (NREB), this new government unit will be headed by the Energy Secretary, with members from the Departments of Trade and Industry (DTI), Finance (DoF), Environment and Natural Resources (DENR), National Power Corporation (NPC), National Transmission Corporation (TransCo), Philippine Electricity Market Corporation, renewable energy developers, government financial institutions (GFIs) and non-governmental organizations.

Energy Secretary Raphael P.M. Lotilla laid down that "our goal is to reduce dependence on imported oil to about 30 percent in 2010 from the present 37.3 percent thereby improving the country’s energy security."

Once enacted into law, the measure will set policy directions for investments in renewable energy resources, including the grant of fiscal and non-fiscal incentives.

As primarily set out in the bill, the investment perks would cover exemptions from tariff duties and value-added tax zero rating for importation of machinery and equipment for the first 10 years of an operating contract, tax credit on domestic capital equipment and services, special realty tax rates on equipment and machinery, income tax holiday and exemption for the first six years of commercial operations.

The recently enacted Value-Added Tax Reform Act also provides for zerorated privilege for the sale of power generated from renewable sources of energy.

House committee on energy chairman Alipio Cirilo V. Badelles said a technical working group (TWG) worked conscientiously "to harmonize contentious provisions on the various RE bills and come up with a draft substitute bill."

The TWG comprised of representatives from the various government agencies and private entities; who have expressed desire for an immediate passage of the measure.

The crucial issues deliberated upon not only delve on the provision of incentives; but also on setting mechanisms to ensure that the program would eventually turn out viable and efficient.

"With the measure, we would be able to utilize and develop energy resources like biomass, solar, wind, hydropower, geothermal and ocean energy, and other emerging energy sources using new technologies," Badelles stressed.

Lotilla, meanwhile, noted that the development of renewable energy sources is beneficial to the government’s thrust of reducing the country’s reliance on generation systems powered by imported fuels; thus, minimizing exposure of the economy to price fluctuations in the international markets.

The country’s energy generation from renewable and indigenous energy sources currently stands at 5,301.6MW which represents 33-percent of the total installed generating capacity - chief in the list are those from geothermal and hydro sources.