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DEPARTMENT CIRCULAR NO. _DC2020-II- 0024 m

ADOPTING THE GUIDELINES GOVERNING THE 38° OPEN AND COMPETITIVE
SELECTION PROCESS (OCSP3) IN THE AWARD OF RENEWABLE ENERGY
SERVICE CONTRACT, AND FOR OTHER PURPOSES

WHEREAS, Article XII, Section 2 of the 1987 Philippine Constitution provides that
all forces of potential energy and other natural resources within the Philippine
territory belong to the State, thus the exploration, development and utilization shall
be under the full contro! and supervision of the State;

WHEREAS, Republic Act (RA) No. 7638, as amended, otherwise known as “The
Department of Energy Act of 1992”, mandates the Department of Energy (DOE) to
prepare, integrate, coordinate, supervise, and control all plans, programs, projects,
and activities of the Government relative to energy exploration, development,
utilization, distribution, and conservation;

WHEREAS, RA No. 9513 or the “Renewable Energy Act of 2008” and its
Implementing Rules and Regulations (IRR) encourages the DOE to promote the
accelerated development of renewable energy (RE) resources;

WHEREAS, Section 13 of Department Circular No. 2019-10-0013 entitled the
“Omnibus Guidelines governing the award and administration of Renewable Energy
Contracts and the registration of Renewable Energy Developers”, provides for the
procedures in applying for RE Contracts under an Open and Competitive Selection
Process (“OCSP”);

WHEREAS, the DOE has identified Pre-Determined Areas (PDA) for geothermal
and hydropower resource development and utilization;

WHEREAS, the exploration, development and utilization of these PDAs for RE
resources would significantly contribute in the energy supply requirements of the
Philippines.

NOW THEREFORE, for and in consideration of the foregoing premises, the DOE
hereby orders the following procedures to govern the OCSP for RE resources:

Section 1. Scope of Coverage. This Circular shall govern the determination of the
legal, financial and technical qualifications of RE Applicants, the evaluation of their
Applications, and the award of RE Contracts under the 3rd Open and Competitive
Selection Process.

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Energy Center, Rizal Drive cor. 34th Street, Bonifacio Global City, Taguig City, Philippines 1632
Tel. No. (Trunkline) (632) 479-2900;
Website: http://www.doe.gov.ph; E-mail: info@doe.gov.ph

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Section 2. Responsibilities of the Renewable Energy Management Bureau
(REMB). The REMB shall be the lead unit of the DOE in carrying out the
responsibilities under this Circular.

Section 3. Enhanced Participation of LGUs or DUs in RE Contracts. The
conduct of OCSP and award of RE Contracts under this Circular shall encourage
Application with endorsements from their local government units or those to be
undertaken by distribution utilities within their franchise areas.

Section 4. Information, Education and Communication Activities. Pursuant to
Section 31, Rule 10 of the IRR of the RE Act, the DOE, together with National
Renewable Energy Board, shall conduct comprehensive information, education and
communication activities that are designed to increase the awareness and
appreciation of the RE industry and the public in general, of this Circular.

Section 5. Separability Clause. If for any reason, any provision of this Circular is
declared unconstitutional or invalid by a court of competent jurisdiction, the other
parts or provisions not affected thereby shall remain in full force and effect.

Section 6. Repealing Clause. The provisions of other circulars, orders, issuances,
rules and regulations, which are inconsistent with the provisions of this Circular are
hereby repealed, amended, superseded or modified accordingly.

Section 7. Effectivity. This Circular shall take into effect fifteen (15) days following

its publication in at least two (2) newspapers of general circulation. Copies of this
Circular shall be filed with the University of the Philippines Law Center — Office of

the National Administrative Register.
Aad WV

Sdcretary

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

Mn
OcT20 2020

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