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Republic of the Philippines
DEPARTMENT OF ENERGY

(Kagawaran ng Enerhiya)

DEPARTMENT CIRCULAR NO. _I& 2025 ~/|— 006

FRAMEWORK FOR THE INTEGRATION OF WASTE-TO-ENERGY FACILITIES IN
THE COUNTRY’S POWER GENERATION MIX TO IMPLEMENT THE CLEAN
ENERGY SCENARIO UNDER THE PHILIPPINE ENERGY PLAN 2023-2050,
PROVIDING INCENTIVES FOR PIONEER WASTE-TO-ENERGY PROJECTS

AND SUPPLEMENTING THE GREEN ENERGY AUCTION PROGRAM GUIDELINES
UNDER DEPARTMENT CIRCULAR NO. DC2021-11-0036 FOR THE PURPOSE

WHEREAS, Republic Act (RA) No. 7638, otherwise known as the “Department of Energy
Act (DOE) of 1992”, as amended, mandates the DOE to ensure an adequate and
sustainable supply of energy through the integrated development of indigenous resources
and efficient utilization of energy technologies, and to exercise supervision and control
over all government activities relative to energy projects in order to attain the goals
embodied in the Act;

WHEREAS, RA No. 9136, otherwise known as the “Electric Power Industry Reform Act
of 2001” (EPIRA), provides for the development of environmentally compatible and
socially acceptable energy resources and the integration of new and renewable energy
sources into the country’s power generation mix;

WHEREAS, RA No. 9513, or the “Renewable Energy Act of 2008” (RE Act), declares the
policy of the State to accelerate the exploration, development, and utilization of renewable
energy (RE) resources, to reduce the country’s dependence on fossil fuels and mitigate
greenhouse gas (GHG) emissions;

WHEREAS, Section 6 of the RE Act requires all stakeholders in the electric power
industry to contribute to the growth of the RE industry of the country;

WHEREAS, Section 30 of the RE Act provides that the DOE shail, where practicable,
encourage the adoption of waste-to-energy (WTE) facilities and, in coordination with the
Department of Environment and Natural Resources (DENR), ensure compliance
therewith;

WHEREAS, the DOE issued Department Circular (DC) No. DC2017-12-0015, entitled
“Promulgating the Rules and Guidelines Governing the Establishment of the Renewable
Portfolio Standards (RPS) for On-Grid Areas” and DC No. DC2023-05-0014, entitled
“Promulgating the Revised Rules and Guidelines Governing the Operationalization of the
Renewable Portfolio Standards for Off-Gird Areas Pursuant to Section 12 of the RE Act”,
respectively, which recognize RE facilities utilizing WTE technology as eligible for
compliance with the minimum RPS requirements of On-Grid and Off-Grid Mandated
Participants;

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 Framework for the Integration of WTE Facilities in the Country’s Power Generation Mix
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WHEREAS, the DOE issued DC No. DC2018-02-0003, entitled “Adopting and
Prescribing the Policy for the Competitive Selection Process (CSP) in the Procurement
by the Distribution Utilities (DUs) of Power Supply Agreement (PSA) for the Captive
Market,” as amended by DC Nos. DC2021-09-0030 and DC2025-10-0022, to ensure
transparency and competitiveness in the conduct of CSP through the wide dissemination
of bid opportunities and participation of all eligible and qualified generation companies;

WHEREAS, on 3 November 2021, the DOE issued DC No. DC2021-11-0036, entitled
“Providing the Revised Guidelines for the Green Energy Auction Program (GEAP) in the
Philippines” (GEAP Guidelines), which aims to support and/or facilitate immediate and
timely investments in new or additional RE capacities and thereby ensure availability of
adequate supply and competitive rates of electricity in the country;

WHEREAS, Section 8 of the GEAP Guidelines provides that the Energy Regulatory
Commission (ERC) shall determine the Green Energy Auction Reserve (GEAR) Price/s
under each Auction Round Procedure;

WHEREAS, the DOE issued DC No. DC2022-02-0002, entitled “Prescribing the Policies
and Programs to Promote and Enhance the Development of Biomass WTE Facilities,” to
enhance the development of biomass WTE facilities;

WHEREAS, Section 5 of DC No. DC2022-10-0031, entitled “Declaring All Renewable
Energy Resources as Preferential Dispatch Generating Units in the Wholesale Electricity
Spot Market (WESM) Amending for this Purpose Department Circular No. DC2015-03-
0001,” provides that the DOE may grant Preferential Dispatch status to any future
emerging RE technologies that may be approved by the DOE;

WHEREAS, the Philippine Energy Plan (PEP) 2023-2050 includes a Clean Energy
Scenario (CES) aimed at accelerating the energy transition through the diversification of
energy sources, including the strategic integration of WTE technologies;

WHEREAS, the integration of WTE in the country’s power generation mix represents a
strategic approach to addressing the dual challenges of growing energy demand and
increasing solid waste generation, in line with RA No. 9003, as amended, or the
“Ecological Solid Waste Management Act of 2000”; and

WHEREAS, there is a need to establish a clear and consistent policy framework to guide
the commercial development, regulatory oversight, and grid integration of WTE facilities
in the Philippines.

NOW, THEREFORE, in consideration of the foregoing premises, the DOE hereby issues,
adopts, and promulgates the following policy framework for the integration of WTE in the
country’s power generation mix:
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RULE |
GENERAL PRINCIPLES

Section 1. Title. — This Circular shall be known and referred to as the “FRAMEWORK
FOR THE INTEGRATION OF WTE FACILITIES IN THE COUNTRY’S POWER
GENERATION MIX.”

Section 2. Guiding Principles for WTE Integration. — The government shall promote
a conducive industry environment for the commercial operation of WTE facilities guided
by the following principles:

2.1. Energy Security. WTE facilities shall provide a stable, indigenous baseload
and/or flexible energy source of electricity by converting acceptable
municipal solid waste (MSVV), such as source segregated biodegradables
or residual wastes collected from households, Materials Recovery Facilities,
Residual Containment Areas (RCAs), Sanitary Landfills, and other disposal
facilities, into power.

2.2. Environmental Sustainability. WTE facilities, particularly those employing
thermal combustion technology, shall complement national and local solid
waste management goals, minimize the use of and need for sanitary
landfills, and reduce methane and GHG emissions, consistent with
applicable laws, rules and regulations, and international agreements.

2.3. Circular Economy. WTE facilities shall adhere to the principles of circular
economy as defined in RA No. 9003, as amended.

2.4. Grid Integration. \WWTE facilities and their required transmission and
distribution facilities to enable full dispatch shall be included in the Power
Development Plan (PDP), Transmission Development Plan (TDP), and
Distribution Development Plans (DDPs), supported by System Impact
Studies (SIS) and Distribution Impact Studies (DIS), respectively.

2.5. Offtake Arrangement under the GEAP; Alternative Offtake
Arrangement. Special Auction Round/s for Pioneer WTE Projects shall be
conducted under the GEAP. Capacities from Pioneer WTE Projects which
are not under the GEAP shall be contracted by DUs and other offtakers.

2.6. Competitive Pricing. \n setting the reserve price and/or electricity rates for
WTE capacity, the ERC shall, without prejudice to other considerations set
forth in the EPIRA and related laws, take into account the capital-intensive
nature of WTE development, the long-term operational horizon of WTE
projects, and other benefits derived from WTE facilities employing thermal
combustion technology, such as, but not limited to, waste management,
reduction on the need for new sanitary landfills or any expansion thereof,
and GHG emissions reduction. The ERC shall likewise use the appropriate
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and current WTE reference projects and prevailing costs as basis for such
determination.

2.7. Community Benefits. Host beneficiaries of WTE facilities shall benefit from
employment, livelihood programs, environmental safeguards, and receive
direct and tangible benefits in accordance with DC No. DC2025-10-0023,
or the “Enhanced Energy Regulations for the Benefits to Host
Communities,” and other applicable national policies.

2.8. Compliance with Environmental Regulations. WTE facilities shall
comply with all environmental laws, including Presidential Decree No. 1586,
entitled “Establishing an Environmental Impact Statement System Including
Other Environmental Management Related Measures and for Other
Purposes,” RA No. 6969, otherwise known as the “Toxic Substances and
Hazardous and Nuclear Wastes Control Act of 1990,” RA No. 8749,
otherwise known as the “Philippine Clear Air Act of 1999,” RA No. 9003, RA
No. 9275, otherwise known as the “Philippine Clean Water Act of 2004,” and
DENR Administrative Order No. 2019-21, entitled “Guidelines Governing
WTE Facilities for the Integrated Management of Municipal Solid Wastes,”
or any amendment thereto, and other relevant rules and regulations.

RULE Il
POLICY FRAMEWORK FOR THE PIONEER WTE PROJECT

Section 3. Definition and Recognition. - WTE projects employing thermal
combustion technology to process MSW of Highly Urbanized Cities (HUCs) or individual
or clustered local government units (LGUs) that have achieved Commercial Operations
not later than 31 March 2028 shall be considered as Pioneer WTE Projects, eligible for
priority permitting, dispatch, and other incentives provided for in this Circular.

The list of HUCs or individual or clustered LGUs that will supply MSW feedstock for
Pioneer WTE Projects shall be issued by the DOE through the relevant Auction Round
Procedures and Terms of Reference under the Special Auction Round for WTE under the
GEAP.

Multiple Pioneer WTE Projects sourcing MSW feedstock from a specific HUC or individual
or clustered LGUs shall only be allowed if the volume of MSW from such HUC or individual
or clustered LGUs is sufficient to sustain operations, except when the developer of
Pioneer WTE Project submits to the DOE a Feedstock Supply Agreement covering MSW
from other sources, conformably with Rule III, Section 6.7, paragraph 2 of this Circular.
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DC on Framework for the Integration of WTE Facilities in the Country's Power Generation Mix

Section 4.

4.1.

Page 5 of 14

Roles and Responsibilities of the DOE.

Within thirty (30) days from the issuance of this Circular, the DOE shall:

1)

3)

7)

8)

Explore alternatives for the role of the government in Pioneer WTE
Projects, including Public-Private Partnerships (PPP), joint ventures,
or full private sector-led development, while ensuring alignment with
national solid waste management and energy policies;

Study options for financing and funding mechanisms specific to WTE
technologies, in coordination with the PPP Center of the Philippines,
Department of Finance (DOF), Department of Economy, Planning,
and Development (DEPDev), and other relevant agencies or
institutions;

Plan with the Transmission Network Provider (TNP), System
Operator (SO), and concerned DU to ensure that appropriate
transmission and/or distribution infrastructure is developed in time for
the commercial operation of Pioneer WTE Projects, and that they are
incorporated in the TDP and/or the relevant DDP;

Design appropriate mechanisms and market arrangements to
ensure the full offtake of energy output from Pioneer WTE Projects,
including power supply aggregation and direct contracting with
industrial or commercial customers under the Retail Competition and
Open Access;

Evaluate possible policies, in coordination with the ERC, for the
integration of WTE-generated electricity into the power supply
planning of DUs, Electric Cooperatives (ECs), and the National
Electrification Administration (NEA);

Formulate policies to maximize benefits for host LGUs and
communities of WTE facilities in accordance with DC No. DC2025-
10-0023;

Identify priority sources of MSW feedstock, including HUCs or
individual or clustered LGUs, and assess their waste supply viability
in coordination with LGUs, the DENR, the Department of Interior and
Local Government (DILG), and the National Solid Waste
Management Commission (NSWMC);

Identify policy interventions to address cross-sectoral concerns
related to WTE projects, which shall include, but shall not be limited
to, ensuring feedstock assurance and sustainability; establishing
long-term MSW _ supply agreements; enhancing inter-agency
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4.2.

9)

10)

11)

The

Page 6 of 14

coordination on solid waste segregation, transport, and
preprocessing; and promoting public education and stakeholder
consultation;

Ensure that each Pioneer WTE Projects with offtake arrangements
under the GEAP have an assured feedstock supply;

Identify and propose additional incentives for Pioneer WTE Projects
in recognition of their dual role in energy generation and waste
management; and

Coordinate with all relevant government agencies, LGUs, regulators,
and industry stakeholders to ensure the smooth implementation of
this Circular and to monitor progress toward the integration of WTE
into the country’s power generation mix.

Renewable Energy Management Bureau-Biomass Energy

Management Division (REMB-BEMD) of the DOE, or any subsequent or
successor entities or bodies, shall, in addition to its respective mandate
under existing laws, guidelines, and regulations, have the following
responsibilities:

1)

2)

3)

4)

5)

6)

Provide technical assistance to the developers of Pioneer WTE
projects throughout the planning, development, and operational
phases;

Assist concerned agencies and entities in performing their
responsibilities under this Circular and, when necessary, alert them
of actions required for their timely completion, particularly on matters
related to permitting, inter-agency coordination, and grid integration;

Consolidate and monitor developments made by concerned
agencies and stakeholders and provide periodic updates and reports
on the status of actions and commitments under this Circular;

Coordinate with other relevant agencies and entities, beyond those
explicitly mentioned in this Circular, including but not limited to the
DENR, NSWMC, DILG, and LGUs, to support the implementation of
WTE-related policies and address cross-cutting challenges;

Lead negotiations with HUCs or individual or clustered LGUs to the
end that Pioneer WTE Projects under the GEAP have assured
feedstock supply;

Lead, in coordination with the DENR-Environmental Management
Bureau, and/or collaborate with development partners in the conduct
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7)

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of capacity-building activities for relevant agencies and stakeholders
on WTE technologies, environmental and emissions standards, and
energy market integration; and

Perform other duties and functions as may be assigned or delegated
by the Secretary in support of the effective implementation of this
Circular.

Section 5. Roles and Responsibilities of Other Government Agencies/

Instrumentalities.

5.1. ERC. Within sixty (60) days from the issuance of this Circular, the ERC shall:

1)

2)

3)

4)

5)

Formulate rules and guidelines for the determination of the
appropriate price-setting methodology applicable to the operation of
Pioneer WTE Projects, consistent with the principles under Rule |,
Section 2.6 of this Circular. Such rules shall establish a reference
price or tariff range, define a long-term cost recovery mechanism,
such as a Regulatory Asset Base (RAB) model, and incorporate the
necessary regulatory adjustments to accommodate WTE into the
Philippine Grid Code, Philippine Distribution Code, and the Open
Access Transmission Service Rules;

Establish a regulation for minimum contract periods for PSAs
involving Pioneer WTE Projects, with a base term of twenty-five (25)
years starting from the project's Commercial Operation Date,
extendable based on the assessed economic life of the facility and
consistency with environmental compliance;

Set the necessary rules and incorporate allowable costs for
refurbishment, pollution control equipment upgrades, and long-term
maintenance during the commercial operations of WTE facilities,
consistent with cost-of-service regulation principles and subject to
applicable environmental and energy regulations;

Establish the rules and requirements for the issuances of Certificate
of Compliance (COC) for WTE facilities, in coordination with the
DOE, DENR, and other relevant agencies, to ensure regulatory
alignment and the safe, compliant integration of WTE into the power
system;

Conduct capacity-building programs in partnership with the DOE’s
REMB-BEMD, the NSWMC, and other development partners, to
build institutional and technical expertise on WTE pricing, permitting,
and operational monitoring; and
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6)

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Provide other regulatory support as may be necessary to achieve the
objectives of this Circular and to facilitate the effective integration of
WTE into the country's generation mix.

5.2. Transmission Network Provider (TNP) and System Operator (SO). The
TNP and SO shall:

1)

2)

3)

4)

6)

Maintain close and regular communication with developers of
Pioneer WTE Projects in the course of planning, construction, grid
connection, and operational integration. This ensures that all
relevant information regarding the plant's technical design,
operational profile, and safety protocols is provided to support the
reliability, security, and stability of the power system.

The DOE and its relevant agencies, including the National
Transmission Corporation (TransCo), shall be included in these
communications to ensure compliance with energy policies and to
facilitate proper grid integration and system planning;

Build the necessary transmission infrastructure and related facilities
in a timely manner to support the effective integration and dispatch
of electricity generated from the Pioneer WTE Projects into the grid.

The transmission network must be designed to accommodate the
anticipated capacity of Pioneer WTE Projects, consistent with its
declared capacity under the PEP and relevant Grid Impact Studies;

Issue the required SIS within four (4) months from submission of a
complete application and ensure timely issuance of the Facility Study
and Transmission Connection Agreement to facilitate the grid
connection of Pioneer WTE Projects;

In the next TDP following the issuance of this Circular, include WTE
energy in the expansion and enhancement of the national grid,
considering the specific operational characteristics of WTE
technologies and aligned with applicable environmental and safety
standards;

Guarantee a priority schedule for testing and commissioning for
Pioneer WTE Projects in accordance with DOE’s endorsement;

Ensure the preferential dispatch of generation by Pioneer WTE
Projects, specifically as Priority Dispatch, recognizing their roles as
reliable baseload source in the WESM;
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DC on Framework for the Integration of WTE Facilities in the Country’s Power Generation Mix

5.3.

Section 6.

Page 9 of 14

7) Build institutional and technical capacity within the TNP and SO to
manage the entry and operation of WTE plants in the power system,
in coordination with the DOE, NSWMC, and other development
partners; and

8) Perform other actions as may be necessary to ensure the smooth,
safe, and efficient integration of Pioneer WTE Projects into the
national power grid.

Other Government Agencies and Entities. The DOE may seek the
assistance of other government agencies, government-owned and -
controlled corporations, local government units, and private entities as may
be necessary to accomplish the objectives of this Circular.

RULE Ill
INCENTIVES FOR PIONEER WTE PROJECTS

Incentives in Support of Pioneer WTE Projects. The following shall be

the incentives in support of Pioneer WTE Projects:

6.4.

6.2.

6.3.

Incentive Regime. Developers of Pioneer WTE Project may elect to avail
themselves of the incentives under the RE Act, or the National Internal
Revenue (NIRC) Code of 1997, as amended by RA No. 12066, otherwise
known as the “Corporate Recovery and Tax Incentives for Enterprises to
Maximize Opportunities for Reinvigorating the Economy Act” (CREATE
MORE).

Unless the developer signifies its intention to avail itself of the incentives
under CREATE MORE at the time of issuance of Certificate of Registration,
it shall be considered as having availed itself of the incentives under the RE
Act. Once the developer elects to avail itself of the incentives under
CREATE MORE, such election shall be considered irrevocable and no
incentives under the RE Act shall be allowed thereafter.

Certificate of Energy Project of National Significance (CEPNS). The
CEPNS shall be issued prior to the formal submission of permit and license
applications, subject to the DOE’s evaluation of the project proponent'’s
development plans, programs, and compliance roadmap. Pioneer WTE
Projects shall be given priority in permitting and regulatory processes,
recognizing their dual role in renewable energy generation and sustainable
solid waste management. Pursuant to Executive Order (EO) No. 30, s.
2017, such projects shall be automatically certified as EPNS.

Preferential Dispatch. Pioneer WTE Projects shall be granted Preferential
Dispatch, specifically as Priority Dispatch, in the WESM.
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6.4.

6.5.

6.6.

6.7.

Section 7.

Page 10 of 14

Exemption from CSP. Any DOE issuance to the contrary notwithstanding,
Pioneer WTE Projects which are not under the GEAP, regardless of
capacity, shall be exempt from the conduct of CSP.

Recognition as Host Beneficiaries. HUCs or individual or clustered LGUs
supplying MSW feedstock to Pioneer WTE Projects shall also be
considered as host beneficiaries for the purpose of receiving the benefits
under DC No. DC2025-10-0023.

Assistance in Negotiations with HUCs, individual or clustered LGUs,
and the Metropolitan Manila Development Authority (MMDA). The DOE
shall extend full assistance to developers of Pioneer WTE Projects in every
stage of negotiations with the concerned HUC or individual or clustered
LGUs and, if applicable, the MMDA. Such assistance shall include, but not
limited to, conduct of Information, Education and Communication
campaigns for the procurement of Resolutions of Support/No Objection,
facilitating compliance of DUs and other offtakers with Rule VI, Section 13
of this Circular, and proposing mechanisms to minimize the economic
impact of such compliance to consumers, such as through subsidies on
electricity bills sourced from the HUC’s, individual or clustered LGUs’, or
MMDA's savings on tipping fees.

Assured Feedstock Supply under GEAP. The DOE, through REMB, shall
ensure that Pioneer WTE Projects under the GEAP have sufficient MSW
feedstock through appropriate memoranda of agreements with HUCs,
individual or clustered LGUs, or other government entities.

In cases where the MSW feedstock from an HUC or individual or clustered
LGUs is not sufficient, the developer of Pioneer WTE Projects may procure
the additional MSW volume needed to deliver the full capacity of the Pioneer
WTE Project from other sources, provided that the sourced MSW is
consistent with the eligible feedstock defined under DENR Administrative
Order No. 2019-21 or its subsequent amendments.

Conditions for Continuing Availment. The incentives granted to Pioneer

WTE Projects under this Circular shall be subject to strict compliance with all laws, rules
and regulations, including the Terms of Reference for Special Auction Round for WTE,
and the WTE Operating Contract.

Section 8.

RULE IV

POLICY FRAMEWORK FOR SUCCEEDING WTE PROJECTS

Role and Responsibilities of Government Agencies and Other Entities.

— After assessing the initial phase and operations of Pioneer WTE Project/s and to sustain
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the implementation of the principles under this Circular, the following agencies and
entities shall have the following roles and responsibilities:

8.1.

8.2.

8.3.

Department of Energy (DOE). |n addition to its functions under Rule Il,
Section 4.1 of this Circular, the DOE shall:

1)

2)

3)

4)

Assess the appropriate mechanisms, arrangements, and platforms
for the further integration and full offtake of succeeding WTE projects
in the power system, to ensure their financial and operational
viability, while maximizing their contribution to energy security and
waste management.

Ensure that the formulation of the Power Supply Procurement Plans
(PSPPs) of DUs includes appropriate allocations or space for WTE
capacities, in a manner that aligns with each DU’s optimal energy
mix, and in compliance with the EPIRA mandate to deliver least-cost
power supply to their respective franchise areas.

Conduct monitoring, coordination, and verification activities to
ensure compliance with the rules, timelines, and requirements
issued under this Circular and other relevant policies.

Formulate policies to support further market-based integration of
WTE projects, including but not limited to, the potential establishment
of complementary electricity markets such as a Capacity Market, a
Futures Market, or Waste Credits Scheme, to incentivize the
environmental and grid reliability contributions of WTE.

ERC. |n addition to its functions under Rule Il, Section 5.1 of this Circular,
the ERC shall:

1)

2)

Update, if necessary, the rules and guidelines for determination and
appropriate price-setting methodology applicable to WTE
generation, including the development of a tariff structure that
reflects the dual benefits of WTE in energy generation and waste
management. This may include setting benchmark tariffs or tariff
ranges for WTE projects and enabling appropriate offtake
arrangements with DUs and other eligible buyers.

Provide other regulatory support necessary to ensure the efficient
integration of WTE projects into the energy market and to achieve
the objectives of this Circular.

TNP and SO. In addition to their functions under Rule Il, Section 5.2 of this
Circular, the TNP and SO shall:
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8.4.

8.5.

8.6.

Page 12 of 14

1) Construct, enhance, or upgrade the necessary transmission
infrastructure to support the effective integration and distribution of
electricity generated from WTE facilities into the grid, including
provisions for future multi-site or clustered WTE developments, and
the reliable transfer of such generation to DUs.

2) Formulate or amend, in collaboration with the Market Operator, the
dispatch protocols for electricity generated from WTE facilities, with
consideration of WTE's role as a reliable baseload source.

3) Perform other acts necessary for seamless integration, grid
harmonization, and reliable operation of WTE projects within the
national transmission system.

Independent Market Operator (IMO). The IMO shall:

1) Conduct studies and assessments on suitable market mechanisms
for WTE integration, including the potential adoption of models such
as Contracts for Difference (CfD), Waste Diversion Credits, or other
incentive-based instruments that recognize the dual environmental
and energy contributions of WTE projects;

2) Facilitate the efficient and transparent participation of electricity
generated from WTE facilities in the market, consistent with existing
market conditions and governing rules and regulations;

3) Propose and facilitate amendments to the WESM Rules and Market
Manuals, particularly the Dispatch Protocol, in coordination with the
SO and the WESM-Rules Change Committee, to ensure the
preferential dispatch and baseload characteristics of WTE projects
are efficiently and transparently integrated into market operations,
subject to the approval of the DOE.

4) Perform all acts consistent with the issuances of the DOE pursuant
to this Circular.

Mandate of Other Concerned Unit(s) - The REMB-BEMD of the DOE, or
any subsequent or successor entities or bodies, shall continue to perform
its functions under Rule Il, Section 4.2 of this Circular and ensure that
policies remain aligned with the development, integration, and expansion of
succeeding WTE projects.

Other Government Agencies and Entities. The DOE may seek the
assistance of other government agencies and instrumentalities, as well as
private sector entities, to achieve the objectives of this Circular relative to
the development and deployment of current and future WTE projects.
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RULE V
SUPPLEMENTAL GEAP GUIDELINES
FOR SPECIAL AUCTION ROUND FOR WTE

Section 9. Qualified Supplier. - RE Developers/Generators whose WTE Operating
Contract or Biomass Energy Operating Contract was awarded, or the assignment thereof
was approved, pursuant to the Omnibus RE Guidelines, Revised Omnibus RE
Guidelines, as applicable, and any amendment thereof, prior to the start of the
Registration Period under the applicable Terms of Reference, eligible to participate in the
GEA as determined by the Green Energy Auction Committee under Section 6.1 of the
GEAP Guidelines, as amended, may participate in the Special Auction Round for WTE
Projects.

Section 10. GEAR Price Determination. |n determining the GEAR Price for the Special
Auction Round for WTE Projects, the ERC shall apply the price-setting methodology
developed pursuant to Rule Il, Section 5.1, guided by the principles set forth in Rule |,
Section 2.6 of this Circular.

Section 11. Feedstock Supply Agreement. |n the Special Auction Round for WTE
Projects, the Winning Bidder shall submit a duly executed Feedstock Supply Agreement
with the concerned HUC or individual or clustered LGUs, in addition to the Post-Auction
Documents set forth in Section 9.11 of the GEAP Guidelines, as amended. For this
purpose, the DOE shall negotiate with concerned HUCs and/or individual or clustered
LGUs for the latter's commitment to deliver the required MSW volume as feedstock to
Pioneer WTE Projects.

Section 12. Supply Delivery Period. Subject to Rule Il, Section 3 of this Circular, the
Supply Delivery Period of a Pioneer WTE Project under the GEAP shall be twenty-five
(25) years from its Commercial Operations Date (COD). The COD is defined as the date
the WTE Facility secures its Final Certification for Authority to Connect (FCATC) from the
National Grid Corporation of the Philippines (NGCP).

RULE Vi
ALTERNATIVE OFFTAKE ARRANGEMENT
FOR PIONEER WTE PROJECTS

Section 13. Assured Offtake. - ADU or other offtaker serving the franchise area where
a Pioneer WTE Project is located shall be obligated to contract a portion of its supply from
such facility, subject to existing PSAs, provided that the WTE capacity aligns with the
DU's identified system capacity requirements, as validated in its latest PSPP: Provided,
That DUs shall consider Pioneer WTE Projects in their PSPP. In complying with this
provision, the DU or other offtaker shall consider the GEAR Price set by the ERC for the
Special Auction Round for WTE as a reference point in determining the price of electricity.
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DC on Framework for the Integration of WTE Facilities in the Country’s Power Generation Mix
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RULE VII
MISCELLANEOUS PROVISIONS

Section 14. Applicability and Transition. — Unless otherwise amended or subject to
subsequent issuances of the DOE, all rules applied to Pioneer WTE Projects, except
Rules Ill, V, and VI of this Circular, shall likewise govern the succeeding WTE projects.

Section 15. Separability. — \f for any reason, any section or provision of this Circular is
declared invalid or unconstitutional, the other provisions not affected thereby shall remain
valid and subsisting.

Section 16. Repealing Clause. — All other previous issuances, rules, and regulations
inconsistent with the provisions of this Circular are likewise repealed or amended
accordingly.

Section 17. Effectivity. —This Circular shall take effect immediately following its
publication in two (2) newspapers of general circulation or in the Official Gazette. A copy
of this Circular be furnished to the University of the Philippines Law Center-Office of
National Administrative Register (UPLC-ONAR).

Issued at the Energy Center, Rizal Drive, Bonifacio Global City, Taguig City on
2025.

SHA ARIN
retary