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Republic of the Philippines
DEPARTMENT OF ENERGY

(Kagawaran ng Enerhiya)

BAGONG PILIPINAS

DEPARTMENT CIRCULARNO, DC 2625- 8&9~ so/y

PRESCRIBING AMENDMENTS TO
DEPARTMENT CIRCULAR NO. DC2009-05-0008 TITLED,
“RULES AND REGULATIONS IMPLEMENTING REPUBLIC ACT NO. 9513,
OTHERWISE KNOWN AS THE “RENEWABLE ENERGY ACT OF 2008”

WHEREAS, Section 2 of Republic Act (RA) No. 9513, otherwise known as the
“Renewable Energy Act of 2008” (RE Act), directs the State to encourage and
accelerate the exploration, development and utilization of renewable energy (RE)
resources such as, but not limited to, biomass, solar, wind, hydropower, geothermal,
and ocean energy sources, including hybrid systems;

WHEREAS, Section 5 of the RE Act mandates the Department of Energy (DOE) to
implement the provisions of the Act;

WHEREAS, Chapter VII of the RE Act provides incentives for RE projects, activities,
and its commercialization, and establishes the framework for availment thereof by RE
developers;

WHEREAS, pursuant to Section 33 of the RE Act, the DOE issued Department
Circular (DC) No. DC2009-05-0008, otherwise known as the “Rules and Regulations
Implementing Republic Act No. 9513” (RE Act IRR); and

WHEREAS, there is a need to streamline and rationalize the conditions for the
availment of the RE Act incentives provided under the RE Act IRR;

NOW, THEREFORE, in consideration of the foregoing premises, the DOE hereby
issues the following amendments to the RE Act IRR:

Section 1. Section 3 of the RE Act IRR, as amended, is hereby further amended to
read as follows:

SEC. 3. Definition of Terms
As used in the Act and this IRR, the terms below shall be defined as follows:

XXX XXX XXX

(e) “Certificate of Authority” or “COA” refers to a pre-RE Contract certificate
signed by the DOE Secretary, authorizing an RE Developer to procure the
necessary permits and__tenurial_instruments for the exploration,
development, construction and installation, and conduct of reconnaissance
and_ other activities needed for pre-feasibility studies, which are_pre-
requisites to the development and commercial operation of the RE Project;

XXX XXX XXX

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; Email: infocenter@doe.gov.ph

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DC on Prescribing Amendments to DC No. DC2009-05-0008, titled “Rules and Regulations

Implementing RA 9513, also known as the “Renewable Act of 2008”
Page 2 of 6

(p) “Emerging RE Technologies” refers to innovative technologies that harness
RE resources, typically in the early stages of development or adoption, and
often offer novel solutions to enhance efficiency, reduce costs, promote
sustainability, and address specific challenges within the RE sector such as,
but not limited to: advanced solar photovoltaics (PV) with higher efficiency
and_lower costs, next-generation wind turbines designed for improved
performance and reliability, tidal and wave energy converters, innovative
biomass conversion processes, advanced energy storage technologies
such as flow batteries and green hydrogen storage systems, bioenergy
solutions, and enhanced geothermal systems (EGS) and advanced
geothermal systems (AGS), which enable the extraction of geothermal
energy from resources that were previously considered uneconomical or

inaccessible:

XXX XXX XXX

(r) “Energy Storage System” or “ESS” refers to a facility capable to absorb and
store electric power directly from the Grid or Distribution System, or from an

RE Plant or from a Conventional Plant connected to the Grid or Distribution
System, and, when prompted by the System Operator, inject the stored
electric power into either the Grid or Distribution System, as the case may
be, as needed to ensure reliability and balanced power system. ESS

technologies include, but are not limited to, Battery Energy Storage System
BESS), Compressed Air Ener Storage (CAES), Flywheel Ener

Storage (FES), and Pumped-Storage Hydropower:

XXX XXX XXX

(ff) “Integrated RE Plant and ESS” or “IRESS” refers to a combination of RE
Plant/s and ESS that is solely charged by the RE Plant/s:

XXX XXX XXX

Section 2. Section 13 of the RE Act IRR, as amended, is hereby further amended to
read as follows:

SEC. 13. Fiscal Incentives for Renewable Energy Projects and Activities

DOE-certified existing and new RE Developers of RE facilities, IRESS, and
Emerging RE Technologies, including Hybrid Systems, in proportion to and to
the extent of the RE component, for both Power and Non-Power Applications,
shall be entitled to the following incentives:

A. Income Tax Holiday (ITH)

(1) Period of Availment — The duly registered RE Developer shall be fully
exempt from income taxes levied by the National Government for the
period as follows:

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DC on Prescribing Amendments to DC No. DC2009-05-0008, titled “Rules and Regulations

Implementing RA 9513, also known as the “Renewable Act of 2008”
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(a) Existing RE Projects - Seven (7) years from the start of commercial
operations.

All RE Developers that acquire, operate and/or administer existing
RE facilities that were or have been in commercial operation for more
than seven (7) years, upon the effectivity of the Act, shall not be
entitled to ITH, except for any additional investment:Provided, That

the corresponding RE Contract has been validly assigned to, and
duly recognized by the DOE in favor of, the RE Developer.

XXX XXX XXX

(2) Entitlement for New and Additional Investments subject to prior approval
by the DOE

(a) New investment — RE Developers undertaking discovery and
development of new RE Resource distinct from their registered
operations may qualify as new projects, subject to the issuance of a
corresponding RE Contract_and setting up of separate books of
accounts. In such cases, a fresh package of ITH from the start of
commercial operations shall apply.

XXX XXX XXX
B. Exemption from Duties on RE Machinery, Equipment and Materials

Within the first ten (10) years from the issuance of a Certificate of
Registration to an RE Developer, the importation of machinery and
equipment, and materials and parts thereof, including control and
communication equipment, shall be exempt from tariff duties:

(1) Conditions for Duty-Free Importation — An RE Developer may import
machinery and equipment, and materials and parts thereof exempt from
the payment of any and all tariff duties thereon subject to the following
conditions:

(a) The machinery and equipment are directly and actually needed and
will be used exclusively in the RE facilities for the transformation of
and delivery of energy to the point of use;

XXX XXX XXX

(e) Endorsement of the DOE is obtained before the importation.

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DC on Prescribing Amendments to DC No. DC2009-05-0008, titled “Rules and Regulations

Implementing RA 9513, also known as the “Renewable Act of 2008”
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Section 3. Section 18 of the RE Act IRR as amended, is hereby further amended to
read as follows:

SEC. 18. Conditions for Availment of Incentives and Other Privileges
A. Registration/Accreditation with the DOE

For purposes of entitlement to the incentives and privileges under the Act,
existing and new RE Developers, and manufacturers, fabricators, and
suppliers of locally-produced RE shall register with the DOE, through the
Renewable Energy Management Bureau (REMB). The _ following
certifications shall be issued:

(1) DOE Certificate of Registration — Issued to an RE Developer holding
a valid RE Service/Operating Contract.

XXX XXX XXX

The DOE Certificate of Registration shall be issued immediately upon
award of an RE Service/Operating Contract covering an existing or new
RE project or upon approval of additional investment: Provided, That the
Certificate of Registration may, at the option of the RE Developer, be
issued upon receipt of proof of financial closing for RE Operating
Contracts, or upon issuance of the Certificate of Confirmation of
Commerciality for RE Service Contracts.

XXX XXX XXX

B. Registration with the Board of Investments

The RE sector is hereby declared a priority investment sector that will
regularly form part of the country’s Investment Priority Plan (IPP), unless
declared otherwise by law.

XXX XXX XXX

The registration with the BOI shall be carried out through an agreement and
an administrative arrangement between the BOI and the DOE, with the end-
view of facilitating the registration of qualified RE facilities. The applications
for registration and/or availment_of incentives under the Act shall be
favorably acted upon by the BOI, on the basis of the certification issued by
the DOE: Provided, That such certification is issued in accordance with the

agreement between the DOE and BOI. For this purpose, the DOE and BOI
shall review and/or revise, as necessary, their agreement and administrative

arrangement within thi 30) days from the effectivity of this Circular.

XXX XXX XXX

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DC on Prescribing Amendments to DC No. DC2009-05-0008, titled “Rules and Regulations
Implementing RA 9513, also known as the “Renewable Act of 2008”
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C. DOE Endorsement for Availment of Incentives and Duty-Free
Importations of Machinery, Equipment, and Materials

RE Developers, and manufacturers, fabricators, and suppliers of locally-
produced RE equipment shall be qualified to avail of the incentives provided
for in the RE Act only after securing the following:

(1) ITH - Certificate of Registration and RE Developer’s Certificate of
Compliance or its equivalent duly issued by the ERC:

(2) Duty-free importation —

(a) RE project as proposed - Certificate of Endorsement from the
DOE, through the REMB, on a per importation basis;

(b) New investment — RE Contract, Certificate of Registration for the

new RE project and Certificate of Endorsement from the DOE,
through the REMB, on a per importation basis;

(c) Additional_investment_-— Certificate of Registration for the

Additional Investment and Certificate of Endorsement from the
DOE, through the REMB, on a per importation basis.

(3) Special_Realty Tax Rates on Equipment and Machinery _—
Certification on RE equipment and machinery comprising the RE
facility:

(4) Corporate Tax Rate — Certificate of Endorsement issued prior to the
first year of availment.

No certification of endorsement shall be required to avail of the other
incentives and benefits under the Act but the RE Developer shall comply
with the requirements of the concerned government agencies.

The certification issued by the DOE shall be without prejudice to any
further requirements that may be imposed by the government agencies
tasked with the administration of the fiscal incentives mentioned under
Rule 5 of this IRR.

The DOE may recall, withdraw or revoke any certification issued

hereunder if:

(1) The RE Service/Operating Contract covering the registered RE
project is terminated with finality: or

(2) The RE Developer commits any of the acts prohibited under the Act
and this IRR.

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
existing.

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DC on Prescribing Amendments to DC No. DC2009-05-0008, titled “Rules and Regulations
Implementing RA 9513, also known as the “Renewable Act of 2008”
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Section 5. Repealing Clause. Other issuances inconsistent with the provisions of
this Circular are hereby repealed, amended or modified accordingly.

Section 6. Effectivity. This Circular shall take effect fifteen (15) days following its
publication in two (2) newspapers of general circulation and filing with the University
of the Philippines Law Center — Office of the National Administrative Register.

Issued this SFP 0 4 2025 at DOE, Energy Center, Rizal Drive corner 34
Street, Bonifacio Global City, Taguig City.