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The Department of Energy plans to award a hundred more renewable energy contracts, Energy Assistant secretary Mario Marasigan recently said.

Marasigan said that the DOE is trying to finish the evaluation process soon so that contracts can be awarded before the year ends.

Last month, the DOE awarded 87 contracts for the development of biomass, geothermal, solar, hydropower, ocean and wind energy resources to 18 companies.

The DOE expects 4,042 megawatts (MW) from these projects once they are on stream.

Reyes said the DOE will ensure that the new investments are nurtured and sustained.

Last September, the DOE also awarded seven renewable energy service contracts, with a combined estimated capacity of 379 MW, to six companies under the Renewable Energy Act which was signed December last year.

DOE earlier said the medium-term Renewable Energy Policy Framework aims to develop more than 4,000 MW of additional renewable energy capacity, 1,200 MW of which is planned to come from geothermal.

The incentives in the RE Act include tariff exemption and zero value-added tax on importation of machinery and equipment for the first 10 years of an operating contract, and tax credit on domestic capital equipment and services.

Special tax rates will also be given for equipment and machinery to be used for renewable energy development. An income tax holiday will be granted for the first seven years of commercial operations.

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