DC2024-06-0018 — Revised Omnibus RE Guidelines

DC2024-06-0018 — “Revised Omnibus Guidelines Governing the Award and Administration of Renewable Energy Contracts and the Registration of Renewable Energy Developers” — is the DOE’s consolidated regulatory framework governing how RE Contracts are awarded, managed, and administered for all RE resource types. Issued June 4, 2024, it supersedes DC2019-10-0013 (Omnibus RE Guidelines, 2019) and integrates all subsequent enhancements including DC2022-11-0034 (nationality restriction amendment) [DC2024-06-0018, Preamble, 2024-06-04].

What It Supersedes

DC2024-06-0018 consolidates and supersedes [DC2024-06-0018, Preamble, 2024-06-04]:

• DC2019-10-0013 — the prior Omnibus RE Guidelines (October 2019)
• 13 prior Department Orders (DO2013-08-0011 through DO2019-07-0018) that progressively amended DC2009-07-0011
• DC2022-11-0034 — RE nationality restriction amendment (incorporated)
• DOE Advisories No. 1, 2, 3 (March–April 2023)

Coverage (§2)

The Circular covers four areas [DC2024-06-0018, §2, 2024-06-04]:

1. Pre-application, application, and award of RE Contracts
2. Conversion of existing service contracts to RE Contracts (per §39, Rule 13, RE Act IRR)
3. Issuance of Certificates of Registration (COR) for RE Developers
4. Administration of RE Contracts

Structure — 15 Chapters

Contract Type Framework

The Revised Omnibus RE Guidelines distinguishes two contract categories and seven contract types [DC2024-06-0018, §3, 2024-06-04]:

RE Service Contracts (require Pre-Development Stage — exploration first):

• GSC — Geothermal Service Contract
• HSC — Hydropower Service Contract
• OnWESC — Onshore Wind Energy Service Contract
• OsWESC — Offshore Wind Energy Service Contract
• OESC — Ocean Energy Service Contract

RE Operating Contracts (no Pre-Development Stage — direct to development):

• BEOC — Biomass Energy Operating Contract
• WTEOC — Waste-to-Energy Operating Contract
• SEOC — Solar Energy Operating Contract

See RE Contract Framework for the full contract lifecycle framework.

Abbreviation change: prior documents used WOEC/OWOEC for wind contracts; DC2024-06-0018 formally introduces OnWESC and OsWESC. The OsWESC definition explicitly captures “WESCs awarded prior to EO 21,” grandfathering pre-EO 21 offshore wind contracts [DC2024-06-0018, Ch. I, §1, 2024-06-04].

Chapter II — EVOSS Filing and Blocking System

Official EVOSS submission requires upload Monday–Thursday 8am–5pm, or Friday/pre-holiday 8am–12pm; five developer-side activities and four DOE-side activities are excluded from the EVOSS processing clock [DC2024-06-0018, §4, 2024-06-04]. The Blocking System defines 30″×30″ meridional blocks (~81 ha each) used as the Area of Interest (AOI) unit for wind, geothermal, and ocean energy applications; solar and biomass/waste-to-energy applications instead use the project-site Contract Area directly [DC2024-06-0018, §4, 2024-06-04].

Resource-Specific Contract Provisions

Chapter III — Biomass and Waste-to-Energy (§5–§14): BEOC/WTEOC are awarded exclusively through Direct Application (no OCSP); applicants identify their own project site and DOE certifies availability within 18 calendar days [§7]. §7.1 permits 100% Filipino and/or foreign ownership, consistent with the DC2022-11-0034 nationality liberalization for non-extractive RE resources. Unlike exploration-based contracts, applicants must show proof of land ownership or possessory rights at filing (an affidavit of acquired rights is an interim option, with final proof due within 30 days of COA issuance or the contract is void ab initio); the Certificate of Availability (COA) itself is optional and waiveable, letting developers proceed directly to contract execution. Contract term is a non-extendible 3-year Development Stage plus a 25-year contract term (excluding the COA period), renewable for 25 more years. Capacity increases of ≥30% entitle the developer to an additional COR with an incentive reset [DC2024-06-0018, §§5–14, 2024-06-04].

Chapter IV — Geothermal (§15–§24): §15.1 retains the 60% Filipino-capital constitutional restriction for GSC applicants — geothermal was excluded from the DC2022-11-0034 nationality liberalization. §15.2 sets the FTAA exception (large-scale geothermal eligible for a Presidential FTAA with foreign corporations) at an initial investment of ≥US$50 million, inclusive of Pre-Development through production-well drilling. GSC may be awarded via OCSP (for Pre-Determined Areas) or Direct Application — unlike biomass/WtE, which is DA-only. The Pre-Development Stage runs 5 years plus a 2-year extension (decided by the REMB Supervising Undersecretary), and Development/Commercial Stages are combined into a single stage running from the Certificate of Commercial Operating Capacity (COCOC) onward. COR is triggered by COCOC rather than Financial Closing, and the additional-COR threshold is a lower 10% (vs. 30% for biomass/WtE) [DC2024-06-0018, §§15–24, 2024-06-04].

Chapter V — Solar (§25–§32): §25.1 confirms solar is open to 100% foreign ownership. SEOC, like BEOC/WTEOC, is awarded only through Direct Application [§26]. The COA period is the shortest of any RE resource — up to 1 year for land-based solar, up to 2 years for floating solar (vs. up to 3 years for other resources) — reflecting lighter pre-feasibility requirements; §28.6 requires DOE to extend the COA until System Impact Study (SIS) approval issues, if the developer filed a complete SIS application within 6 months of the COA date, protecting solar developers from NGCP-caused delays. The Development Stage is comparatively longer than biomass/WtE — 5 years non-extendible for land-based, 6 years non-extendible for floating solar (vs. 3 years for BEOC/WTEOC). §29.2.3 permits a single multi-project SEOC to cover multiple solar projects of ≤5 MW each within the same province/city. §26.2 limits the own-use exemption to self-generating facilities with no grid connection; grid-tied systems must obtain an SEOC. §31.2 provides for legacy pre-2024 Solar Energy Service Contracts (which had a Pre-Development Stage) to convert under §68 [DC2024-06-0018, §§25–32, 2024-06-04].

Chapter VI — Hydropower and Ocean Energy (§33–§43): §33.1 allows 100% foreign ownership of the project company, but §33.2 separately reserves water appropriation from natural sources to ≥60% Filipino-owned entities under PD 1067 — a foreign-owned hydro developer may need a Filipino-majority water-rights entity as a structural partner. The Pre-Development Stage is tiered by hydro type: Run-of-River (ROR) gets 3 years + 2-year extension; Impoundment, Pumped Storage, and Ocean Energy get 5 years + 2-year extension. §40 formally defines the three hydro types (ROR — weir-based, no large dam; Impoundment — large dam and reservoir; Pumped Storage — two-reservoir energy storage, on the same Pre-Dev timeline as Impoundment). HSC applicants specify weir/powerhouse coordinates with elevation (point-based AOI); OESC applicants use polygonal or Blocking System AOI (area-based), reflecting the diffuse nature of ocean energy resources. Additional-COR thresholds are differentiated: ≥20% for hydropower, ≥30% for ocean energy. COR is triggered by COCOC, as with geothermal [DC2024-06-0018, §§33–43, 2024-06-04].

Chapter VII — Onshore Wind (§44–§53): §44.1 confirms 100% foreign ownership, consistent with the DC2022-11-0034 liberalization. §51.1 sets a strict, non-extendible 5-year Pre-Development Stage — no extension option, unlike geothermal (5+2yr) or ROR hydro (3+2yr); developers must declare commerciality within 5 years or lose the contract. The renewal application window (§51.4) opens earlier than for other resources — 2 years to 1 year before expiry, vs. 6 to 3 months for most other resources — reflecting longer wind repowering/renewal lead times. AOI uses the Blocking System (polygonal, blocks, or combination) [§48.5], same as geothermal, ocean energy, and offshore wind. §46.1 requires wind resource data in PDA packages for onshore wind. §45.3 exempts own-use/non-commercial wind projects from OnWESC (Chapter XI registration only). §48.6.1 requires area-verification checks against both OnWESC and OsWESC, confirming onshore and offshore wind tracts are tracked separately but can conflict in coastal/transition zones [DC2024-06-0018, §§44–53, 2024-06-04].

Chapter VIII — Offshore Wind (§54–§64): In contrast to onshore wind, §62.1 gives OsWESC developers an extendible Pre-Development Stage — 5 years + 2-year extension (same as geothermal and ocean energy), filed 6 to 3 months before Pre-Dev expiry and approved by the REMB Supervising Undersecretary. §61 defines two platform types: Fixed-Bottom (piles or gravity bases on the seabed, shallow water) and Floating (anchored by mooring lines/cables, deeper water — enabling development across the Philippines’ deep-water EEZ). The renewal window (§62.5) matches onshore wind’s 2yr–1yr-before-expiry timing. §55.3 exempts own-use/non-commercial offshore wind from OsWESC (Chapter XI registration only). The additional-COR threshold is ≥30% [§64.2], same as onshore wind and most other resources except hydro. COR triggers upon COCOC issuance, or at the developer’s option upon OsWESC award [§60.5]. §58.6.1 cross-flags OnWESC/OsWESC area conflicts, confirming shared geographic management of wind blocks [DC2024-06-0018, §§54–64, 2024-06-04].

Chapter IX — New/Emerging Technologies: No dedicated framework yet exists for RE technologies beyond the eight enumerated resource types. REMB is to develop one; until then, applicants use the most analogous chapter [DC2024-06-0018, Ch. IX, 2024-06-04].

Contract Administration (Ch. X, §65–§72)

• Performance bond exemption for ≤5 MW projects (§65): projects at or below this threshold are exempt from the performance bond requirement entirely — the same capacity threshold used for multi-project SEOC eligibility.
• Post-EPC audit after 2 years: if DOE finds ≥1 year of cumulative unreasonable construction delay during the 2-year audit period, it may cancel the contract unless the developer posts a supplemental bond equal to 30% of financial commitment.
• DOC filing deadline is hard (§67): the Declaration of Commerciality must be filed before Pre-Development Stage expiry; DOE allows one 30-day cure if rejection issues after expiry; failure to file or cure results in automatic contract termination [§67.3].
• Contract Area reduces to Production Area upon COCOC (§67.5): excess exploration area is relinquished at the Pre-Dev→Development transition.
• Assignment seasoning period: 2 years from effectivity for non-affiliates, waivable early for RE Service Contracts if all minimum required permits were already procured before the proposed assignment date [§70.1.3.1].
• Incentive retroactivity on assignment (§70.2): if assigned within 10 years without the assignor having used duty-free importation, the assignee gets a fresh 10-year duty-free window — explicitly retroactive to past assignments.
• OsWESC template conversion window is 5 years (vs. 1 year for other contracts) (§68): all RE Contracts may convert to DC2024-06-0018 templates within 1 year; OsWESCs have until 2029-06-04 (5 years from effectivity), reflecting long offshore-wind development timelines.
• Abandonment Plan required before COCOC (§72): the Abandonment/Termination Plan must be DENR- and DOE-approved before commerciality can be declared.
• Work Program revisions cannot extend Pre-Development Stage (§69.10): Force Majeure events requiring a Pre-Dev extension must go through the full contract-amendment procedure under §69.

[DC2024-06-0018, §§65–72, 2024-06-04]

Own-Use / Non-Commercial Registration (§80–§86)

Own-Use/Non-Commercial COR Validity (§85): COR for own-use/non-commercial RE Projects is valid for an initial 5-year period, renewable in 5-year increments to a maximum of 25 years (or end-of-project-life); no RE Contract is required [DC2024-06-0018, §85, 2024-06-04].

Key Operative Provisions

CREATE vs RE Act Incentive Election (§87): Each RE Developer, at the time of COR issuance, must choose between (a) the incentive regime under the RE Act (RA 9513), or (b) incentives under the CREATE Act (RA 11534). The election is irrevocable — if no signification is made, the RE Act incentives are deemed elected, and a CREATE election eliminates all RE Act incentives permanently. CREATE may be more favorable for larger or more commercially structured projects [DC2024-06-0018, §87, 2024-06-04].

Performance Bond Temporarily Suspended (§91): As of effectivity (2024-06-04), the performance bond requirement for all RE Contracts is suspended. The suspension is indefinite until lifted by a DOE Advisory. All new RE Contracts signed after this date are not required to post a performance bond until the Advisory lifts the suspension [DC2024-06-0018, §91, 2024-06-04].

Wind Data Sharing Mandate (§77): RE Contract holders with wind resources (both onshore and offshore) must submit 10-minute-interval wind data (speed at 3 heights; direction at 2 heights; temperature) to the Energy Data Center of the Philippines (EDCP) — as part of the DOC requirement during Pre-Development Stage, annually during operations, and in full upon termination/relinquishment. After commercial operations commence, other developers may access the data for a fee split 50/50 between the original developer and the DOE [DC2024-06-0018, §77, 2024-06-04].

Force Majeure — Obligation Suspension vs Contract Suspension (§74 vs §75): Under §74, individual obligations are suspended while a Force Majeure event persists, but the developer must still post bond, file reports, and fulfill unaffected obligations. Under §75, if Force Majeure prevents RE operations for more than 6 continuous months, the developer may request full contract suspension — a separate, stronger remedy that stops the term clock — for a maximum period of 3 years or until FM ceases, whichever is earlier. The suspension period does not count against the contract term, and this remedy may be used only once per contract [DC2024-06-0018, §§74–75, 2024-06-04].

DOE Power to Compel Operations (§76): DOE may order a developer to resume operations — and operate the facility directly if the developer remains non-compliant within 3 days — when the developer fails to operate without justification, this causes an electricity shortage, and there is an imminent threat to national security or the economy. This is a rare but significant state override power, and unremedied default under §76 is itself a termination ground under §78 [DC2024-06-0018, §76, 2024-06-04].

Termination Triggers (§78): Six distinct grounds for termination: failure to submit the DOC, failure to secure an ERC Certificate of Compliance by the end of the Development Stage, voluntary relinquishment, failure to maintain the performance bond pre-construction, unremedied default under §76, or other contractual grounds. The developer gets 30 calendar days to explain, with reconsideration available within 10 working days. Terminated areas re-open per the original award mode — PDA areas revert to OCSP; others open for Direct Application on a first-come-first-served basis [§78.6] [DC2024-06-0018, §78, 2024-06-04].

5-Month Application Processing Freeze (§89–§90): Upon effectivity (2024-06-04), the DOE suspended all LOI and RE Application processing for 5 months to update EVOSS, coordinate with BOI/DENR/LGUs, and update the list of de-listed areas. Processing resumed via DOE Advisory. Pending applicants had 30 days from effectivity to re-file without new fees; failure to re-file meant continued processing under the old rules [DC2024-06-0018, §§89–90, 2024-06-04].

Timeline Extension and Effectivity (§93, §97): Any single processing timeline may be extended once, for a maximum of 60 calendar days, with written DOE notice stating the reason and the final release date; REMB’s Citizen’s Charter must be updated to reflect all timelines [§93]. The Circular took effect 15 days after publication in at least two national newspapers of general circulation — 2024-06-04 [§97]. The repealing clause (§96) is non-specific, superseding all inconsistent circulars, orders, and rules; the specific list of superseded instruments is enumerated in the Preamble (see “What It Supersedes” above) [DC2024-06-0018, §§93–97, 2024-06-04].

Mandatory Requirements Review (§92): DOE must review RE Application requirements (Annex M) within 6 months of effectivity and may amend them via Advisory [DC2024-06-0018, §92, 2024-06-04].

Context: Nationality Restrictions

DC2022-11-0034’s removal of the 60% Filipino ownership cap for solar/wind/hydro/ocean RE is incorporated into this Circular’s eligibility provisions. Geothermal retains the constitutional restriction. Hydropower/ocean energy also carries a distinct split between corporate ownership (open to 100% foreign) and water-appropriation rights (reserved to ≥60% Filipino entities under PD 1067). See RE Sector Nationality Restrictions .

Appendix

Annexes A–P provide the prescribed RE Contract templates, requirement checklists, mapping requirements, and affidavit templates for each resource type [DC2024-06-0018, Appendix, 2024-06-04].

Full text: Cleaned copy