ILOILO CITY, Iloilo -- The Philippines could become the leading source of renewable energy in the region once the Renewable Energy Law takes effect, Senator Edgardo Angara said.

Angara, who authored the Senate version of the bill, said the utilization of renewable energy sources could reach 60 to 70 percent because of the available resources that could be tapped so the country could veer way from dependence on imported and fossil fuel.

Speaking at the Western Visayas Renewable Energy Congress here on Friday, Angara noted that the country was the world's second top producer of geothermal energy, next only to the United States.

While it was unscientific and unstable to fully source energy requirements from renewable sources, he said there was a pressing need to increase the renewable sources of energy like water, solar, wind, biomass, and geothermal.

The Renewable Energy Bill was approved by Congress last month and will take effect after President Gloria Macapagal-Arroyo signs it into law.

The bill allows power consumers to choose renewable sources of energy over fossil fuel like coal and petroleum products.

It aims to hasten the exploration and development of renewable energy resources and promote their use by providing fiscal and non-fiscal incentives.

The bill encourages local investors to go into the development of alternative energy resources through incentives.

Angara said the growing energy needs and lack of power supply could trigger brownouts in the Visayas starting next year, followed by Mindanao in 2010, and Luzon the year after.

He said that contrary to some claims, a lot of investors have expressed interest in venturing into renewable energy projects because of the incentives, including a seven-year tax exemption. After the seventh year, the investors will be required to pay a 10 percent corporate tax, instead of 30 percent.

The market is also guaranteed because the bill compels electricity suppliers to purchase a certain percentage of their supply from renewable energy sources.