=== dc2024-03-0010-pages-1.ppm ===
Republic of the Philippines
DEPARTMENT OF ENERGY

(Kagawaran ng Enerhiya)
BAGONG PILIPINAS

os

DEPARTMENT CIRCULAR NO. DC2024-__ 9 2 — cole 4,7

AMENDMENT TO DEPARTMENT CIRCULAR NO. DC2023-10-0029
PROVIDING SPECIFIC AUCTION POLICY AND GUIDELINES FOR NON-FIT-
ELIGIBLE RENEWABLE ENERGY TECHNOLOGIES IN THE GREEN ENERGY
AUCTION PROGRAM

WHEREAS, on 12 December 2023, the Department of Energy (DOE) issued
Department Circular (DC) No. DC2023-10-0029 titled, “Providing Specific Auction
Policy and Guidelines for Non-FIT-Eligible Renewable Energy Technologies in the
Green Energy Auction Program”;

WHEREAS, Section 5.1 of said Circular provides that the Energy Regulatory
Commission (ERC) shall issue the approved parameters and criteria per type of Non-
FIT-Eligible RE Facility to be used in evaluating Price Offers submitted by Bidders;

WHEREAS, Section 6 of said DC further provides that the Winning Bidders for each
Auction Round of the Green Energy Auction (GEA) for Non-FIT-Eligible RE technology
shall be those whose Price Offers were endorsed by the DOE to, and approved by,
the ERC after evaluation based on the approved set of parameters and criteria;

WHEREAS, there is a need to clarify that, from the set of parameters and criteria, the
ERC shall promulgate the rules on GEA for Non-FIT-Eligible RE technology auction
pricing methodology;

NOW, THEREFORE, pursuant to its authority under Republic Act No. 9513, or the
Renewable Energy Act of 2008, the DOE hereby adopts, issues, and promulgates the
following amendments to DC No. DC2023-10-0029:

Section 1. Section 5.1, 2"! Paragraph is hereby amended to read as follows:

“5.1 Pre-Auction Process and Price Offer.
XXX XXX XXX XXX

“Within sixty (60) calendar days from effectivity of this Circular, the ERC
shall promulgate the rules on the Price Determination Methodology (PDM)
for Non-FIT-Eligible RE Technologies in the GEAP taking into
consideration the set of parameters and criteria based on, among others,
cost range assumptions and weighted cost of capital of Project Internal
Rate of Return (PIRR). These shall be used in its evaluation of Price
Offers submitted by Bidders.”

Section 2. Section 5.2, 2" Paragraph is hereby deleted.

Section 3. Section 5.4, 2"4 Paragraph is hereby amended to read as follows:

Energy Center, Rizal Drive cor. 34th Street, Bonifacio Global City, Taguig City, Philippines 1632
Tel. No. (Trunkline) (632) 8479-2900
Website: http://www.doe.gov.ph; E-mail: info@doe.gov.ph
=== dc2024-03-0010-pages-2.ppm ===
Amendment to DC No, DC2023-10-0029 Providing Specific Auction Policy and Guidelines for Non-
FIT-Eligible RE Technologies in the GEAP

Page 2 of 2

“Section 5.4. Evaluation of Offers.
XXX XXX XXX XXX

“After evaluation, the DOE shall endorse the respective Price Offers of
legally and technically compliant bids to the ERC. The ERC shall, within
sixty (60) days upon receipt of the DOE endorsement, evaluate the said
Price Offers based on its approved PDM for Non-FIT-Eligible RE
Technologies, which shall include indexation as may be determined by the
Commission. After the ERC completes its evaluation and endorses the
Price Offers to the DOE, the latter will confirm which bidders' Price Offers
are deemed acceptable.”

Section 4. Section 6 is hereby amended to read as follows:

“Section 6. Winning Bidders. The Winning Bidders for each auction
round of Non-FIT-Eligible RE technology will be those whose Price Offers
have been evaluated and found consistent by the ERC with its PDM for
Non-FIT-Eligible RE Technologies.”

Section 5. Separability Clause. If any section or provision of this Circular is declared
invalid or unconstitutional, such parts not affected shall remain valid and subsisting.

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, modified, or superseded accordingly.

Section 7. Effectivity. This Circular shall take effect immediately after publication in
two (2) newspapers of general circulation. A copy of this DC shall be filed with the
University of the Philippines Law Center — Office of National Administrative Register
(UPLC-ONAR).

Issued this at the DOE, Energy Center, Rizal Drive cor. 34"
Street, Bonifacio Global City, Taguig City.

NAR 25 2024