Philippine Energy Policy Wiki

DC2020-04-0009: Guidelines Governing the Issuance of Operating Permits to Renewable Energy Suppliers under the Green Energy Option Program

Status
operative
Confidence
high
Effective date
2020-05-07
Parent law
ra-9513

Department Circular No. DC2020-04-0009, signed 22 April 2020 by DOE Secretary Alfonso G. Cusi. Implements DC2018-07-0019 ’s (GEOP Rules) directive to promulgate operating-permit issuance procedures for RE Suppliers under the Green Energy Option Program .

Background

GEOP Rules §11(a)(i) directed DOE to issue permit procedures for RE Suppliers after public consultation. DOE and the National Renewable Energy Board (NREB) held four regional consultations on the draft guidelines: Cebu (18 June 2019), Davao (27 June 2019), Batangas (11 July 2019), and Pampanga (25 July 2019) [DC2020-04-0009, Whereas clauses, 2020-04-22].

Coverage and Minimum Contract Size

All GEOP contracts must cover a minimum of 100 kW, regardless of the percentage of demand the End-User requires it for [DC2020-04-0009, §2, 2020-04-22]. The scope names thirteen categories of covered stakeholder, including End-Users, RE Developers, RE Suppliers, Distribution Utilities, PEMC/the Independent Market Operator, the Supplier of Last Resort, the Central Registration Body, the RE Registrar, NGCP, TransCo, and ERC-licensed Metering Service Providers [DC2020-04-0009, §3, 2020-04-22].

RE Supplier Qualification and Application

Who may apply [DC2020-04-0009, §5, 2020-04-22]: Any Philippine-registered person or entity engaged in generating or supplying RE electricity, whether or not its RE Facility is RPS-eligible (so long as capacity or energy remains available for GEOP), including facilities that predate the RE Act but are registered under it.

Application requirements [DC2020-04-0009, §6, 2020-04-22]: A written, verified application with (1) an affidavit of undertaking on supply capability, (2) proof of a Replacement Power supply contract, and (3) proof of processing-fee payment.

Automatic qualification for existing RES: An ERC-licensed Retail Electricity Supplier that has served a Contestable Customer for the two years preceding application (shown by billing documents or a sworn statement) may be automatically issued a GEOP Operating Permit, subject to the same affidavit, Replacement Power proof, and fee [DC2020-04-0009, §7, 2020-04-22].

Processing: REMB evaluates all applications and, within 20 working days of a complete submission, recommends approval or disapproval to the Secretary, who decides on endorsement from the Supervising Assistant Secretary and Undersecretary of REMB [DC2020-04-0009, §8, 2020-04-22].

Obligations, Validity, and Renewal

A GEOP Operating Permit is valid for 5 years, renewable starting 6 months before expiry [DC2020-04-0009, §§11–12, 2020-04-22]. RE Suppliers must [DC2020-04-0009, §9, 2020-04-22]:

  • Comply with the GEOP Rules and their permit’s terms
  • File annual reports to REMB by 30 January — generation by facility, purchases by RE Resource, sales by customer, and hourly Replacement Power purchases
  • Keep total power dispatched from RE Facilities ≥ total kWh sold to customers
  • Register in the WESM and with the Central Registration Body before supplying any eligible End-User
  • Register with the RE Registrar under the RE Market Rules (DC2019-12-0016)

Replacement Power

For the first two years of this circular’s implementation, an RE Supplier may source Replacement Power from indigenous-resource generation facilities; after that, Replacement Power must come exclusively from RE Resources. For hybrid RE-plus-storage facilities (e.g., solar with battery energy storage), Replacement Power is needed only during the facility’s maintenance periods [DC2020-04-0009, §10, 2020-04-22].

Suspension, Revocation, and Penalties

DOE may suspend, revoke, or cancel a permit for non-compliance, false or misleading information, unresponsiveness to DOE directives or unresolved customer complaints (within 5 working days), or End-User contract termination for cause. The RE Supplier gets a non-extendible 15-day written-explanation period; REMB reports findings to the Secretary within 15 working days; the Secretary decides within 5 working days, final and immediately executory [DC2020-04-0009, §13, 2020-04-22].

Penalty escalation [DC2020-04-0009, §14, 2020-04-22]: 1-month suspension (1st offense) → 3-month suspension (2nd offense) → cancellation/revocation (3rd offense, or immediately on a repeated identical violation).

RE Pools

RE Suppliers and RE Generators/Developers may form a joint action or pool of RE supply under GEOP to ensure least-cost availability, to the extent permitted by applicable law [DC2020-04-0009, §15, 2020-04-22].

Full text: Cleaned copy