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mw Republic of the Philippines
S| 4 DEPARTMENT OF ENERGY

(Kagawaran ng Enerhiya) BAGONG PILIPINAS

DEPARTMENT CIRCULAR NO. 06201 -03-0004 wy

AMENDMENT TO DEPARTMENT CIRCULAR NO. DC2021-11-0036 TITLED
“PROVIDING THE REVISED GUIDELINES FOR THE GREEN ENERGY AUCTION
PROGRAM IN THE PHILIPPINES”

WHEREAS, the Department of Energy (DOE) issued the revised Guidelines for the
Green Energy Auction Program (GEAP) through Department Circular (DC) No.
DC2021-11-0036 titled, “Providing the Revised Guidelines for the Green Energy
Auction Program in the Philippines” (GEAP Guidelines);

WHEREAS, through the GEAP, the DOE instituted a competitive process in the
selection of eligible renewable energy (RE) facilities entitled to the Feed-In Tariff
Allowance (FIT-All) Fund;

WHEREAS, under the GEAP, the Feed-In Tariff (FIT) to be paid to the selected eligible
RE facilities is fixed based on the price (in PhP/kWh) of the Winning Bidder’s offered
capacity in a Green Energy Auction, known as the “Green Energy Tariff’ (GET);

WHEREAS, GET is defined in Section 4.6 of the GEAP Guidelines as the price, in
PhP/kWh, resulting from the conduct of each Green Energy Auction corresponding to
each Winning Bidder on a pay-as-bid basis;

WHEREAS, under Section 2.10 of ERC Resolution No. 16, Series of 2010, titled
“Resolution Adopting the Feed-in-Tariff Rules” (FIT Rules), ERC shall adjust the FiTs
annually for the entire period of its applicability to allow pass-through of local inflation
and foreign exchange (FOREX) rate variations and shall employ a simple
benchmarking indexation formula to apply to all technologies based on applicable
percentage sharing between local and foreign capital as determined by the ERC in the
setting of the FITs;

WHEREAS, ERC Resolution No. 18, Series of 2014, titled “A Resolution Approving
the Templates for the Renewable Energy Payment Agreement (REPA) and the
Renewable Energy Supply Agreement (RESA)”, recognizes that the “FIT rate” may be
adjusted by the ERC in accordance with Section 2.10 of the FIT Rules;

WHEREAS, Section 16 of the GEAP Guidelines provides that the Green Energy
Auction adopts the Regulatory Framework and Administration of FITs provided under
ERC Resolution No. 16, Series of 2010, except that the Green Energy Auction pricing
mechanism shall be governed by Section 8 of said Guidelines, ie, ERC shall
determine the Green Energy Auction Reserve (GEAR) Price for each auction round:

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: infocenter@doe.gov.ph
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DC on Amendment to DC No.2021-11-0036 titled “Providing the Revised Guidelines for the
GEAP in the Philippines”
Page 2 of 3

WHEREAS, there is a need to clarify that the indexation provided under ERC
Resolution No. 16, Series of 2010, applies to the GET under GEAP, notwithstanding
Section 4.6 of the GEAP Guidelines;

WHEREAS, Department Circular No. DC2024-06-0018, titled “Revised Omnibus
Guidelines Governing the Award and Administration of Renewable Energy Contracts
and the Registration of Renewable Energy Developers” (Revised Omnibus RE
Guidelines), which took effect on 25 June 2024, grants an RE Developer the option to
be issued a Certificate of Authority (COA) after approval of its RE Application but
before the execution of the RE Contract;

WHEREAS, a COA is a certificate duly signed by the DOE exclusively authorizing an
RE Developer to procure the necessary permits and tenurial instruments for the
exploration, development, construction and installation, and commercial operation of
the RE Project and conduct reconnaissance and other activities needed for pre-
feasibility studies, as applicable, within the area specified in the certificate, thereby
giving the RE Developer the privilege of procuring the aforesaid permits and tenurial
instruments outside of the contract term;

WHEREAS, to allow the participation in the GEAP of RE Developers whose RE
Applications have been duly approved by the DOE and who have been issued with
COA, the term “Qualified Suppliers” as defined under the GEAP Guidelines must be
modified;

WHEREAS, in the interest of efficiency in the conduct of the Green Energy Auction,
the posting of the Notice of Auction for a Green Energy Auction shall serve as notice
to all stakeholders of the GEAP, without the need of publication in a newspaper of
general circulation;

WHEREAS, on 14 February 2025, the DOE conducted an online public consultation
on the draft DC, titled “Amendment to Department Circular No. DC2021-11-0036 titled,
Providing the Revised Guidelines for the Green Energy Auction Program in the
Philippines.”

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 amendment to the GEAP Guidelines.

Section 1. Section 4.12 of the GEAP Guidelines is hereby amended to read as follows:

“4.12.‘Qualified Suppliers’ refer to RE Developers/Generators:
(a) awarded with a valid and subsisting RE Contract, or (b) issued
with COA, and eligible to participate in the GEA as determined by the
GEAC under Section 6.1 of this Circular;”

Section 2. Section 9.1 of the GEAP Guidelines is hereby amended to read as follows:

“9.1 Publication of the Notice of Auction. The DOE shall publish the
Notice of Auction on its website. xxx.”
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DC on Amendment to DC No.2021-11-0036 titled “Providing the Revised Guidelines for the
GEAP in the Philippines”
Page 3 of 3

Section 3. Section 16 of the GEAP Guidelines is hereby amended to read as follows:

“Adoption of Certain Provisions in the FIT Rules. The GEA adopts the
Regulatory Framework and Administration of FITs provided under
Resolution No. 16, Series of 2010, issued by the ERC. However, the
GEA pricing mechanism shall be governed by Section 8 of this

Circular. For the avoidance of doubt, the GET resulting from Green
Energy Auctions conducted after the effectivity of this Circular

shall be subject to indexation as may be determined by the ERC
in accordance with the FIT Rules. As such, other entities involved in

the implementation of the FIT shall continue to discharge their
responsibilities as set forth in the FIT Rules with respect to the results
of each auction round.

Section 4. Separability Clause. If any provision of this Circular is declared invalid or
unconstitutional, the other provisions not affected thereby shall remain valid and
subsisting.

Section 5. Repealing Clause. All previous issuances, rules, and regulations
inconsistent with this Circular are hereby repealed, amended, or modified accordingly.

Section 6. Effectivity. This Circular shall take effect fifteen (15) days following its
publication in at least two (2) newspapers of general circulation and shall remain in
effect until otherwise revoked. A copy of this Circular shall be filed with the University
of the Philippines Law Center - Office of the National Administrative Register.

Issued this MAR 0 q 2025 at the DOE, Energy Center, Rizal Drive, cor.
34' Street, Bonifacio Global City, Taguig City, Metro Manila.

earn P.M. LOTILLA &
/ Secretary esos