DC2019-02-0003: Providing for the Framework Governing the Operations of Embedded Generators
Department Circular No. DC2019-02-0003, signed 8 February 2019 by DOE Secretary Alfonso G. Cusi. Establishes the national framework governing the operations of Embedded Generators (EGs) under RA 9136 (EPIRA), replacing ad hoc treatment of EGs with a single set of licensing, connection, market-registration, dispatch, ancillary-service, and metering rules [DC2019-02-0003, Whereas recitals, 2019-02].
Background
Issued after Electric Power Industry Participants raised issues on EG treatment across licensing, connection/operational requirements, market registration, dispatch, ancillary service provision, and metering [DC2019-02-0003, Whereas recital 5, 2019-02]. DOE ran focus group discussions in four cities (Iloilo City, Clark/Pampanga, General Santos City, Cebu City) in May–June 2018 and public consultations in Pasig City and Cagayan de Oro City in August–September 2018 before issuing the circular [DC2019-02-0003, Whereas recitals 6–7, 2019-02].
Amends the WESM-registration rule set by DC2017-05-0009. DC2017-05-0009 (“Declaring the Launch of the WESM in Mindanao and Providing for Transition Guidelines,” effective 2017-06-26) §2 required “All Embedded Generators (a) with installed capacity of at least 5 MW; (b) with installed capacity below 5 MW that have a contract outside its host DU, or intends to sell to the WESM, or inject power to the Grid; and (c) all Feed-in-Tariff (‘FIT’) eligible RE plants” to register in the WESM — quoted verbatim in this circular’s own Whereas recital 4 [DC2019-02-0003, Whereas recital 4, 2019-02]. DC2019-02-0003 §6.1 restates and updates that single 5 MW national threshold into three region-specific thresholds (see below). DC2017-05-0009 is not yet in this corpus; the amendment relationship rests on this circular’s own repealing clause (§16, a generic “contrary to or inconsistent with” provision) plus its direct quotation of the earlier circular’s rule, not on a named repeal.
Definitions
Key terms [DC2019-02-0003, §2, 2019-02]: an Embedded Generator (EG) is “generating units that are indirectly connected to the Grid through the distribution system that supplies power to its host DU or the Grid.” Central Dispatch is the Grid Operator’s process of issuing direct instructions to participants per the Market Operator’s schedule. Maximum Stable Load (Pmax) is the maximum demand a generating unit/block/module can reliably sustain indefinitely, per capability tests. Self-Generating Facilities (End-User-owned generation for own consumption, excluding households/clinics/hospitals/medical facilities) are expressly distinguished from EGs.
Scope
Applies to EGs, Distribution Utilities (DUs), Metering Service Providers (MSPs), the Market Operator (MO), the Transmission Network Provider (TNP), and the System Operator (SO) [DC2019-02-0003, §3, 2019-02]. Excludes Self-Generating Facilities, net-metering distributed generation, and off-grid generation facilities [DC2019-02-0003, §3, 2019-02].
Licensing and connection
All EGs must secure an ERC Certificate of Compliance under existing generation-facility licensing guidelines [DC2019-02-0003, §4.1, 2019-02]. DUs with affiliate-EG supply agreements must observe EPIRA §45 market-share/bilateral-contract limits and Competitive Selection Process Rules [DC2019-02-0003, §4.2, 2019-02]. All EGs must meet Philippine Distribution Code (PDC) connection/operational requirements; WESM-registered EGs must additionally coordinate RTU/communication-link installation with the TNP, metering installation with their MSP, and equipment siting relative to connection points with their MSP/TNP/MO/SO, and must seek DOE endorsement for Grid Impact and System Impact Studies before construction [DC2019-02-0003, §5, 2019-02].
WESM registration thresholds
Mandatory WESM registration applies to EGs meeting any of [DC2019-02-0003, §6.1, 2019-02]:
| Criterion | Threshold |
|---|---|
| Pmax at or above regional threshold | 10 MW (Luzon) · 5 MW (Visayas) · 5 MW (Mindanao) |
| Pmax below threshold, but… | has a contract outside its host DU, or intends to sell to WESM, or injects power to the Grid |
| Resource type | All FIT-eligible RE plants |
EGs below these criteria may register voluntarily [DC2019-02-0003, §6.2, 2019-02]. End-Users exporting power register both as Customer and Generation Company [DC2019-02-0003, §6.3, 2019-02]. Mandatorily-registered EGs are classified under the Generation Company category [DC2019-02-0003, §6.4, 2019-02]. EGs and host DUs must cooperate with the MO on Market Network Model connection-modeling where the connection materially affects WESM dispatch/pricing [DC2019-02-0003, §6.5, 2019-02]. DOE reviews the mandatory-registration criteria annually with the MO and SO [DC2019-02-0003, §6, 2019-02].
Dispatch and ancillary services
WESM-registered EGs must comply with SO Central Dispatch instructions issued through the host DU [DC2019-02-0003, §7.1, 2019-02]; the SO, with the MO and host DUs, establishes an EG energy-dispatch protocol and initiates Dispatch Protocol Manual/Market Manual amendments for DOE approval [DC2019-02-0003, §7.2, 2019-02]. EGs may provide Ancillary Services subject to PGC/PDC criteria [DC2019-02-0003, §8.1, 2019-02]; the SO similarly establishes an Ancillary-Services dispatch protocol with the MO and host DUs [DC2019-02-0003, §8.2, 2019-02]. See Ancillary Services (AS) for the broader AS procurement framework.
Metering
Only ERC-authorized WESM metering-service entities may serve EGs; such entities must register in the WESM as MSPs and meet PDC/WESM Rules/Market Manual metering-installation requirements [DC2019-02-0003, §9, 2019-02].
Institutional responsibilities
| Party | Key duties |
|---|---|
| DUs | Develop/enhance EG-connection business procedures; ensure PGC/PDC-compliant EG operation; coordinate with SO on EG connections; report and assist EG WESM registration; ensure transparent, fair Distribution Wheeling Service charges [DC2019-02-0003, §10, 2019-02] |
| MO | Propose WESM Rules/Market Manual changes to the Rules Change Committee; ensure all mandated EGs register; report EG registration status and market impact to DOE [DC2019-02-0003, §11, 2019-02] |
| TNP | Provide EG monitoring/control/communication equipment per PGC/PDC/WESM Rules; report installation status to DOE [DC2019-02-0003, §12, 2019-02] |
| SO | Conduct Grid/System Impact Studies on DOE endorsement; ensure PGC/PDC-compliant EG monitoring/control/dispatch; report EG grid impact to DOE [DC2019-02-0003, §13, 2019-02] |
Regulatory support
ERC must support implementation and may issue/revise: the PGC, PDC, an Ancillary Service Procurement Plan, Open Access Transmission Rules, Distribution Service Open Access Rules, a Framework for Competitive Metering Services, WESM MSP licensing rules, and Certificate of Compliance issuance rules — plus enforcement and penalty mechanisms for non-compliant Electric Power Industry Participants [DC2019-02-0003, §14, 2019-02].
Final provisions
Standard separability (§15) and repealing (§16, generic “contrary to or inconsistent with”) clauses; effectivity is 15 days after publication in at least two newspapers, with a copy filed at UPLC-ONAR [DC2019-02-0003, §§15–17, 2019-02].
Later citations in this corpus
DC2019-02-0003’s EG WESM-registration and Ancillary-Service-provision framework is cited as the governing protocol by later circulars already in this corpus: DC2020-02-0004 (scope definition), DC2021-03-0009 (Embedded Generator ASP eligibility) — see Reserve Market and Electricity Derivatives (WESM) .
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