Philippine Energy Policy Wiki

DC2022-02-0002: Policy Program for Enhancement of Biomass WTE Development

Status
operative
Confidence
high
Effective date
2022-02-17

Issued: February 17, 2022 | Secretary: Alfonso G. Cusi | Pages: 5

Prescribes policies and programs to promote and enhance development of Biomass Waste-to-Energy (WTE) facilities. Cites RA 7638, EPIRA, and RA 9513 as legal bases. Notably covers the repurposing of coal power plants into Biomass WTE systems.

Sections

§1 — Title: “Policy Program for the Enhancement of Biomass Waste-to-Energy (WTE) Development.”

§2 — Objectives: (1) Promote Biomass WTE as baseload RE contributing to power supply + solid waste management + green jobs; (2) provide classification and conditions for eligible facilities using locally-sourced MSW; (3) prescribe policies to enhance electric power industry participation.

§3 — Scope: RE Developers, LGUs, DUs/ECs, PEMC/IMO, NGCP, TransCo, ERC, and concerned government agencies (DENR, DOH, NSWMC).

§4 — Definitions: Baseload RE Generation Facility; Biomass WTE; Biomass WTE Facility; Biomass WTE Resources; Distribution Utilities; Mandated Participant; Municipal Solid Waste (per RA 9003); REC; REM; RPS.

§5 — Classification: Biomass WTE Resources comply with RA 9513 §4(uu) (RE resource definition) → classified as RE resource.

§6 — Eligibility: Must be (1) DOE-registered under RE Act; and (2) compliant with RA 8749, RA 9275, RA 9003, PD 1586, RA 6969, EPIRA and its IRR.

§7 — Policy Supports:

  • §7.1: 1 REC per MWh from eligible Biomass WTE facility; REM Rules (DC2019-12-0016) apply
  • §7.2(a): 20-year minimum PSA term recommended for embedded Biomass WTE in DU’s uncontracted supply
  • §7.2(b): CSP exemption per DC2021-09-0030 §2.2.1.3

§8 — ERC Directive: Issue implementing rules within 60 days of effectivity.

§9 — Penalties: RA 9513 §35(e) administrative penalties apply.

§§10–13: IEC promotion through REMB; separability; repealing; effectivity (15 days after publication in 2 newspapers of general circulation).

Significance

Resolves any ambiguity about whether MSW-based Biomass WTE qualifies as RE — §5 explicitly anchors it to RA 9513 §4(uu). The 20-year PSA recommendation and CSP exemption reduce developer uncertainty and lower transaction costs for bilateral procurement by DUs. The coal repurposing signal in the whereas clauses is an early indication of the DOE’s intent to facilitate coal plant transitions, which became more explicit in later issuances.

Full text: Cleaned copy