NREP 2020-2040 §C — RE Transition Pathways and Enablers

Source: raw/_pdf/planning-docs/nrep-2020-2040.pdf Chapter: Chapter III, Section A (Framework) — front half Pages: pp. 25–47 (PDF pp. 38–60; offset = 13) Note: pp. 45–46 (PDF pp. 58–59) are image-based in the source; the Table 12 development-partner list is reassembled here from both the machine-readable head (pp. 43–44) and the tail that pdftotext rendered slightly later in the file (pp. 45–47).

Scope

The front half of Chapter III’s Framework — the two components that build demand and an enabling environment for RE:

• Section 1: RE Transition Pathways (Mandatory policies + Voluntary programs)
• Section 2: RE Transition Enablers (laws, regulatory reforms, CREZ, ESS/smart grid, local planning, RESHERR, development partners)

The back half of Chapter III (Off-Grid & PURE, Resource-Specific Programs, Roadmap) is in Digest: NREP 2020-2040 §D — Off-Grid, Resource-Specific Programs, and Roadmap .

Section 1: RE Transition Pathways (pp. 26–31)

Framework Overview (p. 26)

Four NREP Framework components [NREP 2020-2040, p.26, 2022]:

1. RE Transition Pathways — mandatory policies and voluntary programs establishing demand/market for RE
2. RE Transition Enablers — laws, programs, activities creating enabling environment
3. RE Off-Grid and PURE Strategies — social services and livelihood for rural/off-grid communities
4. Resource-Specific Programs — strategies for specific RE resources/technologies

1.1 Mandatory Pathways

RPS (pp. 27-29): Minimum annual increment (Km) to be increased to 2.52% starting 2023. RPS compliance started in 2020 with a transition period; MPs accumulated RECs beginning 2018 (2-3 year buffer). Table 7 — RPS Requirement and Compliance of DUs (as of July 2020, using 2.52% Km from 2023) [NREP 2020-2040, Table 7, p.27, 2022]:

REC compliance source breakdown by grid (2020–2029):

• Luzon DUs: FiT-eligible plants 66%, PSA 24%, net-metering 9%, own-use 1%
• Visayas DUs: FiT-eligible plants 95%, net-metering 4%, PSA 1%
• Mindanao DUs: FiT-eligible plants 73%, PSA 27% (net-metering/own-use = potential once metered and registered in REM)

REM commercial operation (p. 29): Contingent on REM Readiness Criteria: (i) promulgation of REM Manuals, (ii) DOE-PEMC Usufruct Agreement execution, (iii) ERC Provisional Authority for REC price cap and methodology. DOE had endorsed proposed REC price methodology and initial price cap to ERC (as recommended by NREB). NREP targeted commercial operations in 2022 — achieved via DC2022-06-0019.

Preferential Dispatch for ALL RE (p. 29): DOE was formulating policy to extend preferential dispatch to all RE (not just intermittent/FiT-eligible) as of NREP publication; analysis conducted in partnership with the CASE Project (funded by BMUV/Germany; implemented by GIZ).

1.2 Voluntary Programs

Net-Metering enhancements (pp. 30):

• ERC Res 5 s.2020 (27 February 2020) — clarified provisions of ERC Res 6 s.2019
• DC2020-10-0022 — “Prescribing the Policies to Enhance the Net-Metering Program for RE Systems”:
  • Allows banking of net-metering credits for up to 1 year
  • Mandates DUs to publish their net-metering programs and hosting capacities
  • Opens net-metering to off-grid areas (not connected to main grid)
  • Prescribed development of a Net-Metering Guidebook (published April 2022)
• Table 8 — Net-Metering Implementation (as of 31 December 2021) [NREP 2020-2040, Table 8, p.30, 2022]:

GEOP updates (pp. 30-31):

• DC2020-04-0009 (22 April 2020) — “Guidelines Governing the Issuance of Operating Permits to RE Suppliers under the GEOP”
• ERC Resolution No. 8 s.2021 — “GEOP Rules”: defined obligations and commercial arrangements of GEOP participants, interconnection process and standards, switching/relocation/billing/payment procedures; GEOP end-users may revert to captive customer per Section 24 of GEOP Rules
• As of December 2021: 18 RE suppliers with GEOP Operating Permits issued:
  1. Bacman Geothermal, Inc. | 2. First Gen Energy Solutions, Inc. | 3. SN Aboitiz Power-Magat, Inc. | 4. SN Aboitiz Power-RES, Inc. | 5. AC Energy Philippines, Inc. | 6. SPARC-Solar Powered Agri-Rural Communities Corporation | 7. Citicore Energy Solutions Inc. | 8. Prism Energy, Inc. | 9. Aboitiz Energy Solutions, Inc. | 10. Adventenergy, Inc. | 11. Shell Energy Philippines, Inc. | 12. Green Core Geothermal Inc. | 13. DirectPower Services, Inc. | 14. Solar Philippines Retail Electricity, Inc. | 15. EEI Energy Solutions Corp. | 16. AP Renewables, Inc. | 17. Therma Luzon, Inc. | 18. MPower

GEAP issuance (p. 31):

• DC2021-11-0036 (3 November 2021) — established the GEAP; first Notice of Auction (NOA) issued 9 February 2022 for 2,000 MW (hydro, biomass, solar, wind)
• ERC Resolution No. 2 s.2022 (26 May 2022) — GEAR (Green Energy Auction Reserve) prices per RE technology
• GEAP electronic platform developed in collaboration with USAID-ESP (Energy Secure Philippines)
• As of June 2022: GEAC released Terms of Reference, Auction Round Procedures, Updated Timelines; qualified bidder list published; pre-bid conference conducted

Section 2: RE Transition Enablers (pp. 32–46)

2.1 EODB — RA 11032 (p. 32): Mandates standardized business forms, single-stop LGU facilities, Citizen’s Charters for all agencies including DOE; auto-approval if timeline exceeded.

2.2 EVOSS — RA 11234 (pp. 32-33): Signed 8 March 2019; centralized web-based platform managed by DOE; NEA, NPC, TransCo have integrated some processes; most DOE permits/endorsements for RE now lodged in EVOSS.

2.3 Omnibus Guidelines — DC2019-10-0013 (p. 33): OCSP or direct application for RE contracts; Certificate of Registration for own-use/non-commercial projects.

2.4 RE Regulatory Support (pp. 33-34):

• DER Licensing Framework — ERC first draft (2017); anticipates DGCs; recommends DU regulatory framework review to avoid burden-shifting to captive customers
• Transmission Regulatory Reforms — CREZ requirements should be in TDP; NGCP performance evaluation should include RE Act Section 20 obligations (max RE penetration limit)
• Least Cost Pricing — ERC cost-based methodology doesn’t fit RE cost structure; recommend alignment with DOE’s LCOE approach

2.5 CREZ (pp. 34-38):

• Phase I concluded 2020; report “Ready for Renewables — Grid Planning and CREZ in the Philippines”
• Table 9 — CREZ Capacities by Grid and Technology [NREP 2020-2040, Table 9, p.34, 2022]:

Key observation: Hydro potential (655 GW) dwarfs all other RE technologies — predominantly run-of-river potential in Mindanao (382 GW) and Luzon (270 GW). CREZ focuses on solar/wind for practical development; hydro figure includes sites with very low probability of development.

• Table 10 — Associated transmission projects for 25 CREZ; highlights include: Western Luzon 500 kV backbone, Kabugao 500 kV substation, Luzon-Visayas HVDC Bipolar Operation, Batangas-Mindoro Interconnection, Eastern Mindanao 230 kV Transmission Line, Lala-Naga-Zamboanga 230 kV T/L; CREZ solar/wind total: 15,944 MW PV / 18,702 MW wind with associated transmission
• Phase II kicked off 27 January 2021 (DOE + NGCP + TransCo + ERC + USAID/NREL): (1) CREZ Implementation Support, (2) Enhanced Load Modeling, (3) Energy Storage Modeling

2.6 ESS and Smart Grid (p. 38):

• DC2019-08-0012 — original ESS Framework (“Providing a Framework for Energy Storage System in the Electric Power Industry”) — later repealed by DC2023-04-0008
• DC2020-02-0003 (6 February 2020) — “Providing a National Smart Grid Policy Framework for the Philippine Electric Power Industry and Roadmap for Distribution Utilities”; smart grid = enhanced electrical grid with two-way/multi-way communication, real-time monitoring, automation, and control; primary objective: support high VRE penetration

2.7 RETF (p. 39): Special trust account created; RETF Operations Manual under development; DOE coordinating with PCSO, PAGCOR, DENR, and Department of Budget and Management for collection mechanism.

2.8 Local RE Planning (LREP) (pp. 40-41):

• DOE-DILG Joint Memorandum Circular No. 2020-01 (13 April 2020) — “LGU Energy Code”: guidelines for LGUs to facilitate energy project implementation; LGU Energy Sector Committee obligations: (a) Spatial Plan (map RE resources/facilities), (b) Development Plan (incorporate ER 1-94 benefits; integrate energy policies into regional plans), (c) Energy Regulatory Reforms (streamline permitting within EVOSS period), (d) IEC Campaign
• DREAMS project conducted LREP with Iloilo, Palawan, Lanao del Sur, Oriental Mindoro LGUs and MMSU
• SF4RE (Support Facility for RE) — USD 1 million DREAMS sub-facility: supplies materials and funds for local RE projects proposed by LGUs, ECs, non-profits, private developers, and academic institutions
• Example LREP-facilitated RE projects: solar PV for Iloilo Provincial Hospital; Agbobolo micro-hydro rehab/grid interconnection (Ajuy, Iloilo); DC smart grid + solar irrigation (Aborlan, Palawan); solar PV on public buildings in 15 Oriental Mindoro LGUs; solar PV on 11 buildings of Concepcion Iloilo LGU compound (championed by Iloilo III Electric Cooperative, completed Dec 2021)

2.9 RESHERR — Technology-Specific DCs (p. 42): DOE issued technology-specific RESHERR policies on 11 June 2021:

• Geothermal: DC2021-06-0016
• Hydropower: DC2021-06-0017
• Solar: DC2021-06-0018
• Wind: DC2021-06-0019
• Biomass: DC2021-06-0020

Requirements: RE companies must designate an eligible safety officer; subject to random safety inspections by REMB. REMB is ISO 9001:2015-certified (since 2020) for processing Geothermal Safety Officer permits; subsequently expanded to solar, wind, hydropower, and biomass facilities.

2.10 Development Partners — Table 12 (pp. 43–47) [NREP 2020-2040, Table 12, pp.43-47, 2022]. The full partner list, reassembled from both extraction ranges (pp. 45–46 are image-based in the source):

Raw extraction: pdftotext output