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Consistent with the Department's policy of pursuing large-scale utilization of NRE sources especially for power generation pursuant to Section 5(a) of Republic Act No. 7638 and in order to fully achieve the main objective behind the National Power Corporation's (NPC's) initiative of soliciting NRES power projects, the Department hereby defines NRE and clarifies the scope and coverage of NRES technologies under this window.

1. Definition of New and Renewable Energy Sources – It refers to energy produced from renewable natural resources such as biomas, solar, wind geothermal or hydro and also from by-product materials that would be considered as waste.

2. Scope of NRE Technologies - Power generation and cogeneration technologies which shall initially be considered under this window are:

2.1	Hydropower with capacities up to 10 megawatts. The Department takes note of existing NPC programs for small-hydro projects (with capacities of 10 MW to 50 M W) which are the subject of existing and/or programmed solicitations.
2.2	Biomass power generation and cogeneration particularly using bagasse, rice residues, coconut residues, other agri-industrial by-products and municipal wastes,
2.3	Windpower including both large-scale grid connected windfarms and individual units in remote area applications.
2.4	Solar Photovoltaics.
2.5	Other hew emerging technologies, including but not limited to, ocean thermal tidal current and wave power.

3. The Department declares its active support and full cooperation with the said NPC's initiative.

This Department Circular shall take effect immediately.

Adopted: 17 July 1996

(SGD.) FRANCISCO L. VIRAY
Secretary