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ey Republic of the Philippines
“ oe DEPARTMENT OF ENERGY

DEPARTMENT CIRCULAR NO. DC 2015-!I - 0017
pw

CREATING A TECHNICAL ADVISORY COMMITTEE AND MODELLING WORKING
GROUP TO ENABLE VARIABLE RENEWABLE ENERGY INTEGRATION AND
INSTALLATION TARGETS

WHEREAS, Section 2 of Republic Act No. 9136, otherwise known as the Electric Power
Industry Reform Act of 2001 (EPIRA) declares among others as a policy of the State to assure
socially and environmentally compatible energy sources and infrastructure and promote the
utilization of indigenous and new and renewable energy resources in power generation in
order to reduce dependence on imported energy;

WHEREAS, Section 2 of the Republic Act No. 9513, otherwise known as the Renewable
Energy Act of 2008 (RE Act) declares among others the following policy of the State:

(a) Accelerate the exploration and development of renewable energy resources
such as, but not limited to, biomass, solar, wind, hydro, geothermal and ocean
energy sources, including hybrid systems, to achieve energy self-reliance,
through the adoption of sustainable energy development strategies to reduce
the country's dependence on fossil fuels and thereby minimize the country's
exposure to price fluctuations in the international markets, the effects of which
spiral down to almost all sectors of the economy; and

(b) Establish the necessary infrastructure and mechanism to carry out the
mandates specified in this Act and other existing laws;

WHEREAS, the EPIRA mandates the Department of Energy (DOE) to encourage private
sector investments in the electric power sector and promote the development of indigenous
and renewable energy sources; and

WHEREAS, in determining renewable energy (RE) installation targets, the DOE deems it
necessary to ensure the efficient and effective absorption to the grid of RE generating
capacities, evaluate the impacts of increasingly ambitious RE targets, ‘and assess actions to
cost-effectively improve the integration of variable renewable energy (VRE) sources into the

grid.
NOW THEREFORE, for and in consideration of the foregoing premises, the DOE hereby
adopts the following:

Section 1. General Principles. Consistent with its mandate under the EPIRA and RE Act, the
DOE recognizes that the creation of the Technical Advisory Committee (TAC) and Modelling
Working Group (MWG) will enable variable renewable energy (VRE) integration and
installation targets. This goal shall be achieved through the conduct of a grid integration study
which will identify the following among others:

Energy Center, Bonifacio Global City, Taguig City, Philippines ig
‘a Tel. No. 479-2900: Fax 812-6194
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(a) Potential grid reliability concerns with the scaling of VRE;

(b) Options to improve system flexibility and power system balance; and

(c) New installation and grid integration targets

Section 2. Scope and Application. This Circular shall apply to all agencies and entities named
herein and to all electric power industry participants. The focus of the grid integration study
will be the Luzon and Visayas interconnections where most VRE capacities are installed.

Section 3. Composition of the TAC. The Technical Advisory Committee (TAC) which shall
be divided into two: Core TAC and Ad Hoc TAC, shall provide guidance on the scenarios,
methods, assumptions, and interpretation of the results of the grid integration study. The Core
TAC shall be the regular attendees of all the meetings and activities related to the conduct of
the grid integration study while the Ad Hoc TAC shall only be invited as deemed necessary.

The Core TAC shall be comprised of two (2) representatives - one (1) high level official
identified below and one (1) technical staff, as follows:

Chairman:

Members:
(i)

(ii)

(iii)

(iv)
(v)

(vi)
(vii)

(vii

Department of Energy - Undersecretary

Electric Power Industry Management Bureau - Director

Renewable Energy Management Bureau - Diretor

Energy Planning and Policy Bureau - Director

National Grid Corporation of the Philippines (NGCP) - Luzon and
Visayas Systems Operations Head

Philippine Electricity Market Corporation (PEMC) - Vice President for
Corporate Planning and Operations

Energy Regulatory Commission (ERC) - Executive Director
Grid Management Committee (GMC) - Chairman/ Executive Director

Distribution Management Committee (DMC) - Chairman/ Executive
Director

National Transmission Corporation (TRANSCO) - Vice President
National Renewable Energy Board (NREB) - Chairman

National Electrification Administration (NEA) - Deputy Administrator

DC2015-11-0017 - Creating a Technical Advisory Committee and Modelling Working Group to Enable —

ee Energy Integration and Installation Targets

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(ix) | Philippine National Oil Company Renewables Corporation (PNOC-
RC) - Vice President

The Ad Hoc TAC shall be comprised of one (1) representative from each of the following
agencies;

(i) Philippine Independent Power Producer Association (PIPPA)

(ii) Philippine Electric Plant Owners Association (PEPOA)

(iii) | Manila Electric Company (MERALCO)

(iv) Retail Electricity Suppliers Association (RESA)

(v) RE Developers and Associations

(v.i) Philippine Solar Power Alliance (PSPA)

(v.ii) Wind Energy Developers Association of the Philippines
(WEDAP)

(v.iii) Biomass Renewable Energy Alliance (BREA)

(v.iv) Philippine Association of Small Scale Hydropower
(PASSHYDRO) Developers and Stakeholders

(vi) ~ Philippine Rural Electric Cooperatives Association, Inc. (PHILRECA)
(vii) Affiliated Renewable Energy Centers (ARECs)
(viii) National Economic and Development Authority (NEDA)
(ix) | University of the Philippines National Engineering Center (UP-NEC)
(x) International Grid Experts
(xi) | Other agencies which shall be identified as necessary
Section 4. Functions of the TAC. The following are the defined functions of the TAC:
(a) Advise on the development, review, and validation of a grid integration study;

(b) Assist the sponsors in developing study parameters — objectives, scenarios and
sensitivities;

{c) Review the MWG'’s methods, data sources, assumptions, and other key issues,
and provides suggestions as deemed appropriate;

(d) __ Assist in the interpretation of modeling results;

DC2015-11-0017. - Creating a Technical Advisory Committee and Modelling Working Group to Enable Yareney

wable Energy Integration and Installation Targets
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(e)
(f)
(g)

Link model outcomes with policy and regulatory processes;
Endorse the technical rigor of the study; and

Participate in future workshops and development of recommendations
pertaining to grid integration of VRE.

Section 5. Composition of the MWG. The Modeling Working Group (MWG) to be led by the
DOE shall be comprised of two official representatives - one (1) permanent and one (1)
alternate, from each of the following agencies:

(a)

(b)
(¢)
(d)

Department of Energy (DOE)

(i.) Electric Power Industry Management Bureau (EPIMB)
(ii) Renewable Energy Management Bureau (REMB)
National Grid Corporation of the Philippines (NGCP)
Philippine Electricity Market Corporation (PEMC)

Grid Management Committee (GMC)

Section 6. Functions of the MWG. The following are the defined functions of the MWG:

(a)
(b)
(c)
(d)
(e)

(f)
(g)
(h)

Develop and conduct a grid integration study;

Assemble and validate data from a variety of sources;
Construct system model;

Simulate operations under a variety of modeling assumptions;

Analyze and communicate results through high level summary and detailed
report

Analyze and verify simulation results;
Compile technical documents to disseminate findings and methodologies; and

Perform additional analyses as deemed necessary.

Section 7. Responsibilities of Energy Stakeholders. All stakeholders, including government
agencies, generation companies, distribution utilities, and independent power producers,
shall submit to DOE any information requested and deemed necessary for the conduct and
development of the grid integration study. The DOE shall ensure the confidentiality of

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Renewable Energy Integration and Installation Targets

‘a

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proprietary and commercially sensitive information, and the data provided shall solely be
used for policy and planning purposes.

Section 8. Separability Clause. If for any reason, any section or provision of this Circular is
declared unconstitutional or invalid, such parts not affected shall remain valid and subsisting.

Section 9. Effectivity. This Department Circular shall take effect immediately upon the
publication in two (2) newspapers of general circulation and shall remain in effect until

otherwise revoked.
nals ny
Secretary al 7

NOY 42 NAG,
by 12 £ube

Issued at Energy Center, Bonifacio Global City, Taguig City.

* Reputtic ef the Phippinns
‘ eg CEPARTMENT OF ENERGY

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