DC2018-08-0024
Full title: Promulgating the Rules and Guidelines Governing the Establishment of the Renewable Portfolio Standards for Off-Grid Areas
Issued: August 24, 2018 | By: Secretary Alfonso G. Cusi
Legal basis: RA 7638, RA 9136 (EPIRA), RA 9513 §§6 and 12 and its IRR (Rule 4 §12 Part II).
Implementation was suspended after issuance. Formally repealed and replaced by DC2023-05-0014 (May 2023).
Key Provisions
Mandated Participants (Section 11)
(a) Generation Companies including NPC-SPUG, New Private Power Providers (NPPs), and Qualified Third Parties (QTPs); (b) DUs and LGU-operated electric systems with embedded generation facilities.
Minimum Annual RPS Requirement (Sections 7–8)
- Baseline year: 2018
- Minimum annual increment: 1% of the Mandated Participant’s total annual generation
- Full implementation: from year 2020
- Actual RE generation after Baseline Year 2018 shall not be lower than 1% [DC2018-08-0024, §8(a), 2018-08-24]
Eligible RE Facilities (Section 9)
10 technology types: Biomass, Waste-to-Energy, Wind, Solar, Run-of-River Hydroelectric, Impounding Hydroelectric, Ocean Energy, Hybrid systems (RE component), Geothermal, and other technologies later identified by DOE. Eligibility requires commercial operations after the RE Act’s effectivity [DC2018-08-0024, §9, 2018-08-24].
Priority Dispatch (Section 14)
RE facilities dispatched at priority based on least True Cost Generation Rate (TCGR), inclusive of cash-based incentives. Where multiple RE facilities exist in an area, TCGR merit order governs dispatch priority [DC2018-08-0024, §14, 2018-08-24].
Composite Team (Section 17)
- Chair: DOE Undersecretary or Assistant Secretary (designated by Secretary)
- Members: REMB Director, EPIMB Director, NREB Chairman, RE Registrar representative
- Observers: NEA, PSALM
- Support: DOE Legal Services for disputes; REMB Technical Services Management Division for admin support [DC2018-08-0024, §17, 2018-08-24]
Compliance Mechanisms (Section 16)
Mandated Participants may comply through: (a) NPC-SPUG own/contracted RE facilities covered by ERC COC/PTO; (b) NPP/QTP RE facilities under PSAs with DUs; (c) DU embedded RE facilities; (d) RECs purchased in the RE Market [DC2018-08-0024, §16, 2018-08-24].
Transition Period (Section 22)
2 years from the commencement of RE Market operations or effectivity of the Rules (whichever is earlier). Mandatory compliance begins only after transition. All Mandated Participants must commence planning from effectivity [DC2018-08-0024, §22, 2018-08-24].
Carry-Over of Compliance (Section 19)
DOE may allow carry-over of compliance shortfall for up to 2 years (vs. 1 year in DC2023-05-0014). Request deemed approved by DOE after 60 days without action. Failure to comply with shortfall by end of carry-over period subjects the Mandated Participant to administrative liability [DC2018-08-0024, §19, 2018-08-24].
Penalties (Section 21)
- Administrative: PhP100,000–PhP500,000; or revocation of license/franchise/authority to operate
- Criminal: 1–5 years imprisonment and/or PhP100,000–PhP100,000,000, or twice damages/costs avoided (whichever higher)
- Penalties may not be charged to customers or treated as substitutes for compliance [DC2018-08-0024, §21, 2018-08-24]
Pages Created/Updated
- Updated: Renewable Portfolio Standards (RPS) (added DC2018-08-0024 to sources; expanded off-grid RPS history section with original framework details: baseline year 2018, 1% increment, eligible RE technologies, TCGR dispatch, Composite Team composition, 2-year transition, 2-year carry-over, penalties)
- Updated:
meta/sources-index.md - Updated:
meta/ocr-queue.md
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