Manila - Philippine President Gloria Macapagal Arroyo on Tuesday signed into law a renewable energy law that seeks to make the country 60-per cent energy sufficient by 2010 and to mitigate problems caused by climate change.

Arroyo said the Renewable Energy Act of 2008 is the "first and most comprehensive renewable energy law in South-East Asia" and would enable the Philippines to capture part of 71-billion-dollar investments in renewable energy development worldwide.

In signing the law, Arroyo said the Philippine was only 45 per cent self-sufficient in energy in 2001. The percentage rose to 57 in 2007, she added.

The Philippines is the second largest geothermal power producer in the world. It has the highest wind power potential in the region, a high solar power penetration, abundant hydro power and biomass resources.

"With our Renewable Energy Act, we can now move aggressively to develop these resources," she said.

Currently, 26 per cent of the country's power comes from imported coal, while 23 per cent comes from oil. Last year, the country imported 101.4 million barrels of oil, costing
7.5 billion dollars.

The renewable energy law offers tax holidays, exemptions and discounts to promote the use of clean energies. It also prioritizes the purchase, grid connection and transmission of electricity generated from renewable energy sources.

Greenpeace welcomed the enactment of the law, saying this would place the Philippines on track to achieving "an energy revolution" that would end its dependence on fossil fuels.

"Given the worsening manifestation of a changing climate, moving our country away from this deadly and destabilizing addiction to fossil fuels is an unquestionable obligation," said Von Hernandez, Greenpeace South-East Asia executive director. (dpa)