DC2022-09-0030 — Adjusted Annual RPS Percentage Increment (Km)
Full title: Prescribing the Adjusted Annual Percentage Increment to be Imposed on All Mandated Participants of the Renewable Portfolio Standards for On-Grid Areas
Issued: 23 September 2022 | Secretary: Raphael P.M. Lotilla
This circular amends the annual minimum incremental RE percentage (Km) under the on-grid RPS Rules (DC2017-12-0015) , raising it from 1% to 2.52% starting Compliance Year 2023, to achieve the NREP 2021-2040 targets of ≥35% RE by 2030 and >50% by 2040.
Legal Basis
- RA 9513 §6 — NREB sets minimum RE percentage; statutory floor is 1%; NREB recommends; DOE promulgates [DC2022-09-0030, Whereas ¶5–6, 2022-09-23]
- DC2017-12-0015 §9(b) — DOE may adjust Km when prevailing percentage is insufficient to attain RE share target [DC2022-09-0030, Whereas ¶8, 2022-09-23]
- NREB recommendation through NREP 2021-2040 proposal [DC2022-09-0030, Whereas ¶8, 2022-09-23]
Rationale
The 1% Km was insufficient to reach the 35% RE share by 2030 aspirational target set in DC2017-12-0015 §7; NREP modeling showed 2.52% is necessary to achieve more than 50% RE share by 2040 [DC2022-09-0030, Whereas ¶8, 2022-09-23].
Adjusted Km Trajectory
| Year | K0 | Km | Total RPS Req. (K0+Km) | Target RE Share |
|---|---|---|---|---|
| 2020 | 3.34% | 1.00% | 4.34% | 21.24% |
| 2021 | 3.34% | 2.00% | 5.34% | 20.12% |
| 2022 | 3.34% | 3.00% | 6.34% | 20.49% |
| 2023 | 3.34% | 5.52% | 8.86% | 21.87% |
| 2024 | 3.34% | 8.04% | 11.38% | — |
| 2025 | 3.34% | 10.56% | 13.90% | 23.28% |
| 2026 | 3.34% | 13.08% | 16.42% | 24.73% |
| 2027 | 3.34% | 15.60% | 18.94% | 26.24% |
| 2028 | 3.34% | 18.12% | 21.46% | 27.78% |
| 2029 | 3.34% | 20.64% | 23.98% | 29.37% |
| 2030 | 3.34% | 23.16% | 26.50% | 30.98% |
| 2040 | 3.34% | 48.36% | 51.70% | 51.48% |
Table is based on simulations as of 2022; subject to annual RPSCT assessment [DC2022-09-0030, §2 Note, 2022-09-23].
Unresolved discrepancy (flagged, not silently resolved): an earlier condensed version of this table (drawn from the source summary) listed the 2030 row as Km 23.98% / Target RE Share 32.62% rather than Km 23.16% / Target RE Share 30.98% shown above. Both versions cite the same generic locus [DC2022-09-0030, §2, 2022-09-23] without a more precise sub-reference, so the discrepancy cannot be adjudicated from the citation alone. The fuller, sequential (year-by-year) table above is retained as the more internally consistent version — the increments between adjacent years progress smoothly to it — but this should be verified against the original PDF if precision on the 2030 figure matters.
Key Provisions
§2 — Adjusted Km: 2.52% starting 2023, meeting >50% RE share by 2040. The jump from 3% (2022) to 5.52% (2023) reflects the cumulative increments for the 2023 compliance year.
§3 — Coverage: On-grid Mandated Participants only. Off-grid RPS is governed separately by DC2023-05-0014.
§5 — Annual Review: DOE + NREB review and set Km no later than 30 September each year. Km may be adjusted upward or downward based on: RE service contract developments, changes in eligible RE facility criteria, and RPSCT recommendation on actual RE share progress [DC2022-09-0030, §5, 2022-09-23].
§5 — DDP Integration: The adjusted Km schedule must be incorporated into each Distribution Utility’s Distribution Development Plan (DDP) [DC2022-09-0030, §5 final ¶, 2022-09-23].
§6 — Provisional Exemption: MPs whose full contracted power supply would be over-contracted upon compliance may apply for provisional exemption through the RPSCT under DC2017-12-0015 §25. Application must include PSA filings, 10-year power supply-demand outlook, DDP, and RPS Compliance Plan. Denied if MP contracted after DC2017-12-0015 without incorporating the RPS increments — deemed non-compliant with applicable sanctions [DC2022-09-0030, §6, 2022-09-23].
Relationship to Other Instruments
DC2022-09-0030 does not amend DC2017-12-0015 itself — it is issued under the adjustment authority in DC2017-12-0015 §9(b). The Km set here was then codified into the RPS formula by DC2023-05-0015 (May 2023), which amended DC2017-12-0015 to state “1% for Years 2018–2022; 2.52% from 2023 onwards.”
Full text: Cleaned copy