(a) | Optimal Supply Mix with operational efficiency improvement and RE development; | |
(b) | Types of eligible RE resources; | |
(c) | Annual minimum RE requirements for each area; | |
(d) | Annual minimum incremental percentage of electricity sold by the NPC- SPUG or its successors-in-interest, New Private Power Providers (NPP), Distribution Utilities (DU) with embedded generation facilities and Qualified Third Parties (QTP), which are required to source from eligible RE resources; | |
(e) | Minimum requirements for the technical feasibility and stability of Small Grids where RE generation facilities shall be connected; | |
(f) | Dispatch of RE resources to meet the annual minimum requirements of an area; | |
(g) | Procurement by the Mandated Participants of the minimum RE requirement for each area or in their respective supply portfolios; and | |
(h) | Means of compliance by the Mandated Participants of the minimum percentage set herein to meet the baseline RE requirements. |
(a) | “Cash Generation-Based Incentive” refers to the subsidy that any eligible RE Developer is entitled to under the RE Act; | |
(b) | “Contingency Reserve” refers to that portion of a plant’s capacity placed on reserve to cover for the breakdown of the largest unit in the Small Grid or for the regulation and control of the intermittency of RE resources; | |
(c) | “Embedded Generation” refers to generating units that are directly connected to the distribution system of a DU or indirectly connected to the transmission system; | |
(d) “ | Force Majeure” refers to typhoons, storms, tropical depressions, flooding, drought, volcanic eruptions, earthquakes, tidal waves or landslides, or acts of a public enemy, wars (with or without Congressional declaration), riots, insurrections, revolutions, acts of sabotage, blockades or any violent and threatening actions, as well as uncontrollable conditions that may result or would likely lead to the extraordinary disruption of operations of the RE Developer, Generation Company, or DU; | |
(e) | “Generation Company” refers to NPC-SPUG, its successors-in-interest, or any entity supplying power to a DU or Directly-Connected Customer; | |
(f) | “Minimum Renewable Energy Requirement” refers to the RE off-grid development mechanism under the RE Act that requires the Mandated Participants described under Section 11 of this Rules to source a minimum percentage of their total annual generation from available RE resources; | |
(g) | “Missionary Area” refers to areas that are not connected to the national transmission backbone; | |
(h) | “Missionary Electrification Development Plan” or “MEDP” refers to the Government’s plan, developed and updated by the DOE, to achieve energy access in Off-Grid or Missionary Areas nationwide. It shall contain, among others, the policies and programs that will be implemented to sustain the provision of adequate, reliable and efficient supply of electricity in Off-Grid Areas or Missionary Areas, and enable the communities found therein to receive the benefit of sustainable and least-cost electrification solutions and services; | |
(i) | “Missionary Electrification Plan” or “MEP” refers to the five-year plan of the National Power Corporation, updated annually, to implement its missionary electrification function and forms part of the MEDP; | |
(j) | “National Power Corporation” or “NPC” refers to the Government corporation created under RA No. 6395, as amended; | |
(k) | “New Private Power Provider” or “NPP” refers to the entity that has taken over the generation function of NPC-SPUG, partly or wholly, authorized by the Government to produce and supply electricity to Off-Grid or Missionary Areas; | |
(l) | “NPC Small Power Utilities Group” or “NPC-SPUG” refers to the functional unit of the NPC which was created to pursue its missionary electrification function; | |
(m) | “Off-Grid Area” refers to any area that is not connected either to the national transmission system, any distribution network, or other related facilities; | |
(n) | “Optimal Supply Mix” refers to the total generation mix derived from various fuel technologies that shall provide the supply of electricity in the least-cost and reliable manner with due consideration to the Government policies on rational utilization of RE sources and the UC-ME as defined in the MEDP; | |
(o) | “Qualified Third Party” or “QTP” refers to the alternative service provider authorized to provide electric power supply to areas which were waived by franchised DUs pursuant to Section 59 of EPIRA; | |
(p) | “RE Developer” refers to individuals or juridical entities created, registered and/or authorized to operate in the Philippines in accordance with existing Philippine laws and are engaged in the exploration, development or utilization of RE resources and actual operation of RE systems/facilities. It shall include existing entities engaged in the exploration, development and/or utilization of RE resources, or the generation of electricity from RE resources, or both; | |
(q) | “Small Grid” refers to the backbone system of the interconnected high- voltage lines or medium-voltage lines, substations, and other related facilities not connected to the national transmission backbone grid in Luzon, Visayas and Mindanao or in the absence of a transmission system, this could refer to the distribution system in which generation facilities and associated facilities are directly connected. For the purpose of this Rules, Small Grid shall include areas serviced by QTPs; | |
(r) | “Subsidized Approved Generation Rate” or “SAGR” refers to the generation rate, expressed in Peso per Kilowatt-hour, which the ERC has approved for a DU to charge its consumers for electricity generation services; | |
(s) | “System Operator” refers to the party responsible for generation dispatch, the provision of ancillary services, and operation and control to ensure safety, power quality, stability, reliability, and the security of the grid, as defined under the Philippine Small Grid Guidelines issued by the Energy Regulatory Commission (ERC); and | |
(t) | “True Cost Generation Rate” or “TCGR” shall refer to the rate as approved by the ERC, expressed in Peso per Kilowatt-hour, which will allow the recovery of just and reasonable costs, including a reasonable return on the RE investment, to enable NPC-SPUG or its successors-in-interest and NPPs to operate viably. |
(a) | Generation of all existing identified RE resources in the area; | |
(b) | Adoption of hybrid or distributed RE generation systems, whenever feasible; | |
(c) | Stable operation of existing generating units and reliability of the grid with the entry of an RE generation facility consistent with existing and applicable performance standards, and | |
(d) | The capacity corresponding to the above minimum RE generation shall ensure optimal penetration of RE generation while maintaining stable, reliable and adequate supply of electricity, which are further subject to the following: | |
(i) | All DUs shall include in their respective Distribution Development Plans (DDPs) the calculations of the Minimum RE Generation Requirement of their respective Small Grids or Off-Grid Areas, taking into account the actual RE generated by all existing Eligible RE Facilities within their franchise areas; | |
(ii) | In cases where there are no viable RE resources in the area, the Mandated Participants shall still be obligated to comply with the RPS requirements as required by the RE Act; | |
(iii) | To ensure transparency and proper planning without sacrificing grid stability, the DOE shall consult the National Electrification Administration (NEA), NPC, and DUs, as part of its due diligence in awarding RE Service Contracts (RESC) and/or Certificates of Registration (COR) in Off-Grid or Missionary Areas. |
(a) | The Baseline RE requirement, including the annual incremental RE generation in each of the Off-Grid or Missionary Areas shall be determined by the Composite Team, created under Section 17 hereof; Provided, That the actual RE generation after the Baseline Year 2018, shall not be lower than one percent (1%) and the full implementation thereof shall be for year 2020; | |
(b) | The Composite Team, in its recommendation to the DOE Secretary, shall consider the entry of additional RE capacity based on the economic and technical feasibility of the project in the area; | |
(c) | To ensure the efficient and successful implementation of the objectives of Off-Grid RE development, the DOE, in collaboration with the NEA and NPC, shall develop a system to support the capacity building of the Mandated Participants including but not limited to: | |
(i) | The development or the use of a tool or any internationally accepted optimization software that may be used by the Mandated Participants in the planning and implementation of their respective Minimum RPS Compliance Plan that shall be submitted to the DOE; and | |
(ii) | With respect to DUs, the Minimum RPS Compliance Plan shall form part of their respective DDPs. |
(a) | Biomass; | |
(b) | Waste-To-Energy Technology; | |
(c) | Wind Energy; | |
(d) | Solar Energy: | |
(e) | Run-of-River Hydroelectric Power Systems; | |
(f) | Impounding Hydroelectric Power Systems; | |
(g) | Ocean Energy; | |
(h) | Hybrid systems as defined in the RE Act with respect to the RE component; | |
(i) | Geothermal Energy; and | |
(j) | Other RE technologies which may be later identified by the DOE. |
(a) New RE installations included in the MEDP;
(b) Incremental RE capacity resulting from any of the following:(i) Expansion of an existing RE generation facility;
(ii) Upgrading of an RE-based power generation facility;
Provided, That such incremental capacity has been in commercial operation after the Effectivity of the RE Act. The Composite Team shall determine the eligible component of such capacities;
(c) New capacities resulting from a change in the technology, i.e., from a non- RE to RE Generation Facility, Provided, That such change in technology has been in commercial operation after the Effectivity of the RE Act;
(d) Mothballed RE generation facilities that are restored into operation, Provided, That such restoration has been operational after the Effectivity of the RE Act; and
(e) Other types of RE generation facilities as may be later identified by the DOE.
(a) Generation Companies including NPC-SPUG, NPPs, and QTPs; andThe DUs as agreed with the Mandated Participants, shall facilitate the timely conduct of the Competitive Selection Process (CSP) corresponding to the minimum RE component of their respective franchise areas and the subsequent equitable allocation of the RE generated among the Mandated Participants. However, Mandated Participants have the option to construct their own RE Facilities or contract its minimum RE requirement.
(b) DUs and local government-operated electric systems with respect to their own embedded generation facilities.
(a) RE Developers which have acquired or are in possession of the appropriate RESC or COR with the DOE are qualified to bid on the minimum RPS requirements as they are considered as NPPs under DOE Circular No. 2004-In no case shall the compliance with this Rules result in higher electricity rates to the consumers.
01-001 and other subsequent issuances by the DOE;
(b) In procuring RE requirements, the most advantageous RE generation offer that will redound to a higher net reduction in the UC-ME requirement of the Small Grids or Off-Grid Areas, inclusive of the cash incentive if availed, shall be awarded the pertinent Power Supply Agreement (PSA);
(c) All DUS have the option to develop their own RE generation facility;
Provided, That the DU shall register as a RE Developer with the DOE. In such cases, the DU shall conduct competitive bidding for the development and/or operation of its RE generation project.
(a) The dispatch of RE generation facility and other generation facilities shall follow economic merit order and the dispatch protocols based on existing applicable rules and regulations, andSection 15. Review of RPS. This Rules and other relevant requirements, shall be reviewed by the DOE, in consultation with the stakeholders, on or before September 30 of each year or as may be necessary, to ensure its alignment with the NREP.
(b) In the event that there are more than one RE generation facilities in the area, priority dispatch shall be given to the RE generation facility with the least True Cost Generation Rate (TCGR), inclusive of cash-based incentives, if availed of by the RE Developer.
(a) Generation supplied by NPC-SPUG from its own or contracted Eligible RE Facilities covered by PSAs duly issued a Certificate of Compliance (COC) or Permit to Operate (PTO) by the ERC;
(b) Generation supplied by NPP or QTP from its RE generation facilities which are covered by the PSAs with the DUs, and the COCs or PTOs duly issued by the ERC;
(c) Generation from embedded RE generation facilities of the DUs which are covered by the PSAs and the COCs or PTOs duly issued by the ERC; and
(d) Purchased or acquired RE Certificates (REC) in the RE Market as defined by
the DOE in a separate issuance.
(a) DOE Renewable Energy Management Bureau (REMB) Director or his/her designated representative;The representatives from the NEA and the Power Sector Assets and Liabilities Management Corporation shall serve as resource persons and/or observers to the Composite Team.
(b) DOE Electric Power Industry Management Bureau (EPIMB) Director or his/her designated representative;
(c) NREB Chairman or his/her designated representative; and
(d) Representative from the RE Registrar
(a) Compute the minimum annual RPS requirement per Mandated Participant;
(b) Submit a Compliance Report of Mandated Participants to the DOE Secretary, ERC and NREB, after the review and validation of the pertinent information gathered from the RE Registrar;
(c) Establish the procedure and criteria for evaluating compliance by Mandated Participants including any requests for suspension of or carry-over of compliance with the RPS by Mandated Participants;
(d) Recommend the suspension of or carry-over of compliance with the RPS of any Mandated Participant;
(e) Review, on an annual basis, the cost implication of the minimum annual RPS
requirement, nationally and per Mandated Participant; and
(f) Perform such other responsibilities and roles as directed by the DOE Secretary through a separate issuance.
(a) Inadequate supply of the Eligible RE generation facilities to meet the annual requirement;In all cases, the Mandated Participant seeking suspension of compliance must demonstrate to the DOE that the condition was beyond its control and that it exerted all reasonable efforts to comply, notwithstanding the condition. Proof of such condition may include but shall not be limited to, a statement from the RE Registrar of the actual conditions reflecting any of the above circumstances. Such a statement shall be sufficient to prove that the situation is beyond the control of the Mandated Participant.
(b) Inadequate supply of RECs to meet the annual requirement;
(c) Unavailable capacity from the transmission and/or relevant distribution network to transport the Eligible RE Facilities to the Small Grids or Off-Grid Areas;
(d) Occurrence or existence of Force Majeure affecting or preventing the
Mandated Participant from complying with the annual requirements, or
(e) Such other consideration or condition, economic or otherwise, which is
outside the control of the Mandated Participant as may be determined by the
DOE.
(a) Administrative Liability. The DOE may impose a penalty ranging from a minimum of One Hundred Thousand Pesos (P100,000.00) to Five Hundred Thousand Pesos (P500,000.00) or, upon its discretion, may recommend to the appropriate government agency for the revocation of the Mandated Participant’s license, franchise or authority to operate.In the case of associations, partnerships, or corporations, the penalty shall be imposed on the partner/s, president, chief operating officer, chief executive officer, director/s or officer/s responsible for the violation.
(b) Criminal Liability. In accordance with Section 36 (Penalty Clause) and Section 35 (Prohibited Acts) of the RE Act, any person who fails to comply with or violates the RPS Off-Grid Rules shall be imposed with the penalties provided under the RE Act. Any person who willfully aids or abets the commission of such failure or violation or who causes the commission of any such act by another shall be liable in the same manner as the principal.
(a) Power Supply Agreements;Section 24. Information, Education and Communication (IEC) Activities. Pursuant to Section 31, Rule 10 of the IRR of the RE Act, the DOE shall develop a comprehensive IEC campaign that is designed to increase the public awareness and appreciation of the RPS Off-Grid Rules and the RE industry, in general.
(b) Implementation plan to meet the minimum RPS requirement to the DOE prior to the start of each year;
(c) For DUS:
(i) Energy purchases from RE resources broken down by generation facility; (ii) Energy purchases from NPC-SPUG segregated into RE and non-RE
based resources; and
(iii) Energy output from its embedded RE generation facilities.
(d) NPC-SPUG or its successors-in-interest shall be required to submit data on their RE and non-RE energy sales to directly connected customers, if any, aside from their energy sales to DUS;
(e) NPC shall include and submit the following to the DOE as part of its MEP:
(i) RE generation development plan for each island or area in the Off-Grid
Areas; and
(ii) List of Connection Agreements with RE Developers interconnected to
NPC-SPUG's transmission system.