Philippine Energy Policy Wiki

DC2017-12-0015

Status
superseded
Confidence
high
Effective date
2017-12-22

Full title: Promulgating the Rules and Guidelines Governing the Establishment of the Renewable Portfolio Standards for On-Grid Areas

Issued: December 22, 2017 | By: Secretary Alfonso G. Cusi

Legal basis: RA 7638; RA 9136 (EPIRA) §37; RA 9513 §6 and RE Act IRR Rule 2 §4 Part II. Issued upon recommendation of the NREB after 6 years of consultations (2011–2017). Superseded by DC2023-05-0015 (May 2023).

Context at issuance: RE share in national generation mix dropped from 34% (at RE Act passage in 2008) to approximately 24% due to increased fossil fuel plant construction after 2011.

Key Provisions

Policy and Minimum Requirements (Rule 2)

  • Aspirational target: 35% RE share in the national Energy Mix (MWh) by 2030 [DC2017-12-0015, §7, 2017-12-22]
  • Year 0: Defined as the year the RE Market becomes operational (not a fixed calendar year); DC2023-05-0015 later fixed Year 0 as 2018 [DC2017-12-0015, §7(a), 2017-12-22]
  • Transition period: 1 year from RE Market commencement or effectivity, whichever earlier [DC2017-12-0015, §26, 2017-12-22]
  • Initial annual increment: 1% of each MP’s Net Electricity Sales of the prior year; adjusted annually by DOE in coordination with NREB to achieve 35% target [DC2017-12-0015, §8, 2017-12-22]
  • Compliance period: 26 December of current year to 25 December of following year (same as in DC2023-05-0015) [DC2017-12-0015, §17(n), 2017-12-22]

Eligible RE Facilities (Section 10)

10 technologies: Biomass, WTE, Wind, Solar, ROR Hydro, Impounding Hydro, Ocean Energy, Hybrid (RE component), Geothermal, and DOE-identified others. Facilities must have commenced commercial operations after RE Act effectivity [DC2017-12-0015, §10, 2017-12-22].

Additional eligible generation: FIT-system plants, incremental capacity from expansion/upgrade, technology change (non-RE to RE), net metering, own-use RE synchronized to DU system, mothballed RE facilities restored [DC2017-12-0015, §11, 2017-12-22].

Compliance Mechanisms (Section 15)

FiT allocation (pro-rata among MPs by FIT-All payment) + PSA with eligible RE facility + REC purchase from RE Market + net metering generation + own-use RE synchronized to DU [DC2017-12-0015, §15, 2017-12-22].

RE Market and RE Registrar (Sections 16–17)

DOE to establish RE Market within 1 year of effectivity; Market Operator to establish RE Registrar. Key RE Market design rules: scripless RECs, 1 REC per MWh, issued only once, 3-year validity, price cap approved by ERC within 6 months. REC issuance commences at Year 0. FIT-system RECs distributed pro-rata by FIT-All payment [DC2017-12-0015, §§16–17, 2017-12-22].

Composite Team (Sections 19–20)

  • Chair: DOE Assistant Secretary (designated by Secretary)
  • Members: REMB Director, EPIMB Director, NREB Chairman, RE Registrar representative
  • Support: DOE Legal Services; REMB Technical Services Management Division [DC2017-12-0015, §19, 2017-12-22]

Carry-Over of Compliance (Section 25)

DOE may allow carry-over of shortfall for up to 3 years (vs. 1 year in DC2023-05-0015); 60-day deemed approval; Composite Team recommends to DOE [DC2017-12-0015, §25, 2017-12-22].

Five grounds for suspension: (a) inadequate RE supply; (b) inadequate RECs; (c) unavailable grid/distribution capacity; (d) force majeure; (e) other uncontrollable conditions.

Penalties (Section 24)

PhP100,000–PhP500,000 administrative; 1–5 years and/or PhP100,000–PhP100,000,000 or 2× damages/costs avoided criminal. Penalty provisions superseded by DC2023-12-0032 [DC2017-12-0015, §24, 2017-12-22].

NGCP Obligations (Sections 27–28)

NGCP must: (a) submit a Transmission Development Plan (TDP) identifying network expansion for RE resource delivery; (b) list transmission services agreements with RE developers; (c) provide technical study on incremental ancillary services required for new RE technologies; (d) implement the approved TDP [DC2017-12-0015, §§27–28, 2017-12-22].

Annex A — Illustrative RPS Calculations

5 DU examples (DU Nos. 1–5) projecting RPS requirements from 2018–2040, showing the compounding effect of the 1% annual increment on RE procurement obligations. DU No. 1 (22.47M MWh in 2018): RPS requirement grows from 898,828 MWh in Year 1 (2020) to 10,032,514 MWh in 2040 [DC2017-12-0015, Annex A, 2017-12-22].

Pages Created/Updated

  • Updated: Renewable Portfolio Standards (RPS) (added DC2017-12-0015 to sources; added On-Grid RPS Historical Baseline section: Year 0 tied to REM operationalization, 3-year carry-over, Composite Team DOE Asec chair, 1-year RE Market establishment mandate, REC 3-yr validity, 35% by 2030 target, Annex A illustrations, penalty structure)
  • Updated: meta/sources-index.md
  • Updated: meta/ocr-queue.md

Full text: Cleaned copy