For the month of March, the Department of Energy reported that there was a marked increase in the use of renewable energy in the generation mix; primarily that of the National Power Corporation.

In Luzon, it was noted that the share of indigenous and renewable energy went up to 26 percent; while in the Visayas, it was at 89.3 percent and 83 percent for Mindanao.

"On the power sector, the government started last year implementing stringent cost-cutting measures which included the economic dispatch of NPC power plants," said Energy Secretary Raphael P.M. Lotilla.

He added that there have been higher utilization of the cheaper fuel types like hydro, geothermal and natural gas, and a reduced utilization of the more expensive oil and coal.

With the country lacking both in commercial quantity of oil and coal reserves, the power generators would have no other option but to import their fuel requirements. However, the spot and contract prices of these commodities have been surging in the past years.

The government takes more confidence in the use of renewable sources of energy as this was also spared from slapped with value-added tax (VAT) charges which was imposed on electricity sales starting last year.

To enhance the development of renewable energy sources, like wind and geothermal which the Philippines is richly endowed with, the energy department is pushing for the passage of the propounded Renewable Energy Act; that will underpin the grant of more attractive incentives to prospective investors.

The targetted additional capacity, based on DoE’s forecast, will primarily be from hydro-based and geothermal generation; with moderate expectations for wind energy.

The first wind power facility of 25-megawatt capacity set on the ground by Northwind Power Development Corporation and started commercial operation in June 2005.

As could be gleaned from the government-devised power development blueprint, geothermal production is seen inching up by 1,200 MW to 3,131 in the next 10 years; while hydro is eyed to contribute a great chunk of 2,950 MW to 5,468-MW.

Wind energy, on the other hand, will augment capacity by 417 MWs and other sources like solar, biomass and ocean will put in about 131 MW during the planning period.

To realize this goal, the DoE vowed that it will exhaust all measures available to push for proposed set of "pioneer incentives" for investments in the development of the country’s renewable energy sources.

One of the perks being pursued is the grant of a six-year income tax holiday as prescribed under the Omnibus Investment Code to potential renewable energy investments.