PH issues fresh guidelines to boost renewable energy development

Feasibility activities may be conducted prior to the commencement of the 25-year contract.

The Philippines' Department of Energy (DOE) released simplified guidelines to encourage companies to develop more projects for clean energy, helping the country achieve its renewable energy targets. 

In a statement, DOE said the new rules governing the award and administration of RE contracts allow developers to commence permit processing, conduct surveys, and other feasibility activities before the official 25-year contract terms begin. 

The department said it will issue a Certificate of Authority (COA) to developers which grants them authority to proceed with these activities which were previously only permitted after contract approval and signing by the energy secretary.

In terms of COA validity, it will be three years for biomass, geothermal, hydropower, ocean and onshore and offshore wind projects; two years for floating solar; and one year for land-based solar projects. 

DOE said it may still recall the COA if the developer fails to demonstrate reasonable efforts in undertaking the required activities within these prescribed periods.

Meanwhile, DOE said it has also streamlined the process for duty-free importation incentives. 

Developers of certain projects may now receive a Certificate of Registration (COR) upon signing the contract or proof of financial closing, providing them flexibility in availing of duty-free importation incentives in the development stage.

The fresh guidelines will also make way for new investments within contract areas.

To facilitate this transition, the Energy Virtual One-Stop Shop System will undergo enhancements for five months from the effectivity of the new guidelines on 25 June.

During this period, the processing of Letters of Intent (LOI) and RE applications will be temporarily paused, DOE said. Those submitted before the said date will be processed by the DOE-Renewable Energy Management Bureau (DOE-REMB), it noted. 

Other enhancements will also be implemented during the maintenance period such as the updating of delisted RE contracts, DOE said.
 
The DOE-REMB has started orienting relevant government agencies about the new guidelines. The schedule for private stakeholders will be announced soon.