Republic of the Philippines
DEPARTMENT OF ENERGY
(Kagawaran ng Enerhiya)

DEPARTMENT CIRCULAR NO. DC2020

07

- OOi:.,fr

PROMULGATING THE GUIDELINES GOVERNING THE POLICY FOR THE
CONDUCT OF GREEN ENERGY AUCTION IN THE PHILIPPINES
WHEREAS, Republic Act No. 7638, otherwise known as the "Department of Energy
(DOE) Act of 1992" or the "DOE Charter," declares it as a policy of the State to,
among others, ensure a continuous, adequate, and economic supply of energy
through the integrated and intensive exploration, production, management and
development of the country's indigenous energy resources;
WHEREAS, Section 5(b) of the DOE Charter mandates the DOE to "develop and
update the existing Philippine energy program which shall provide for an integrated
and comprehensive exploration, development, utilization, distribution and
conservation of energy resources, with preferential bias for environment-friendly,
indigenous, and low-cost sources of energy. The program shall include a policy
direction towards the privatization of government agencies related to energy,
deregulation of the power and energy industry, and reduction of dependency on oilfired plants";
WHEREAS, Section 2 of Republic Act No. 9136, otherwise known as the "Electric
Power Industry Reform Act of 2001" or "EPIRA," declares the policy of the State to,
among others: (a) ensure fair and non-discriminatory treatment of public and private
sector entities in the process of restructuring the electric power industry; (b) assure
socially and environmentally compatible energy sources and infrastructure; and (c)
promote the utilization of indigenous and new and renewable energy (RE) resources
in power generation in order to reduce dependence on imported energy;
WHEREAS, Chapter Ill, Section 37(e)(i) of the EPIRA mandates the DOE to
encourage private sector investments in the electricity sector and promote the
development of indigenous and RE sources;
WHEREAS, Republic Act No. 9513, otherwise known as the "Renewable Energy Act
of 2008" or the "RE Act," declares the policy of the State to increase the utilization of
RE by institutionalizing the development of national and local capabilities in the use
of RE systems, and promoting its efficient and cost-effective commercial application
by providing fiscal and non-fiscal incentives;
WHEREAS, Chapter III, Section 6, of the RE Act mandates the Renewable Portfolio
Standards (RPS) program, requiring all stakeholders in the electric power industry to
contribute to the growth of the RE industry in the country and, towards this end,
directing the National Renewable Energy Board (NREB) to set the minimum
percentage of generation from eligible RE resources and to determine which sector
RPS shall be imposed on a per grid basis;

Energy Center, Rizal Drive cor. 34th Street, Bonifacio Global City, Taguig City, Philippines 1632
Tel. Nos. (Trunkline) (63 2)479-2900;

WHEREAS, Department Circular No. DC2017-12-0015, otherwise known as the
"RPS Rules for On-Grid Areas" or the "RPS On-Grid Rules," requires the Mandated
Participants, as defined therein, to source or produce the minimum annual RPS
requirement and prescribes the minimum annual incremental RE percentage of their
total electricity requirements from eligible RE resources in order to develop
indigenous and environmentally friendly energy sources, and provides for
compliance mechanisms, monitoring, as well as penalties for non-compliance;
WHEREAS, the RPS On-Grid Rules also provides that the DOE, in coordination with
the NREB, shall establish a market development program for RPS, in order to
encourage the compliance of the Mandated Participants with their respective RPS
obligations;
WHEREAS, Department Circular No. DC2019-10-0013, otherwise known as the
"Omnibus Guidelines Governing the Award and Administration of Renewable Energy
Contracts and the Registration of Renewable Energy Developers" or the Omnibus
Guidelines," provides for an Open and Competitive Selection Process (OCSP) as
one of the modes for the selection and awarding of RE Contracts for Pre-Determined
Areas, as such terms are defined therein;
WHEREAS, the preliminary assessment of the 2011-2030 National Renewable
Energy Program (NREP) indicates that the total installed RE capacity as of
December 2018 is lower than the target capacity by 3,608MW, with the share of RE
in the country's generation supply mix reduced to less than 24%;
WHEREAS, in order to provide more avenues for compliance by Mandated
Participants in meeting their RPS requirements and bolster the DOE's efforts in
promoting the utilization of indigenous and environment-friendly energy resources to
meet the nationally-set NREP targets, there is a need to explore and pursue new
and supplemental programs to support increased investment in new RE projects.
NOW, THEREFORE, premises considered, the DOE hereby issues, adopts and
promulgates the following rules and regulations:

RULE I
GENERAL PROVISIONS
Title. This Circular shall be known as the "Guidelines Governing the
Section '1.
Policy for the Conduct of Green Energy Auction in the Philippines" and shall
hereafter be referred to as the "Green Energy Auction (GEA) Policy"
Section 2. Purposes and Objectives.
2.1 Purposes. The GEA Policy is hereby promulgated to:
21.1 Set the framework which facilitates the procurement of supply from
commercial RE projects by the Mandated Participants under the RPS
On-Grid Rules, such as Distribution Utilities (DU) and Retail Electricity
Suppliers (RES), through a competitive process, for their compliance
with the RPS Program and, as applicable, for their long-term power
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supply requirements pursuant to the respective Power Supply
Procurement Plans (PSPP) of the DU;
21.2 Support the development and increase access to financing of new RE
projects by awarding RE Contracts under a competitive process,
together with long-term bilateral contracts; and
2.1.3 Implement the mandate for preferential bias for RE and indigenous
sources of energy for long-term energy independence.
2.2 Objectives. This GEA Policy seeks to attain the following objectives:
22.1

Assist the Mandated Participants, the DUs in particular, in the RPS
Program in developing and/or fulfilling their RPS compliance plans
through their participation in the Green Energy Auction;

2.2.2 Assist RE Developers in accessing markets for bilateral contracts and
mitigating market exposure and risks related to RE projects;
2.2.3 Address price volatility related to the procurement of RE supply and the
pricing of RECs;
2.2.4 Enhance the RE programs, in general, by promoting a competitive
setting of rates for RE supply in the country; and
2.2.5

Support the development of a mechanism or methodology by the ERC
in regularly setting and updating the GEA prices for long-term contracts
for RE supply for peak and off-peak requirements of regulated entities
to their captive customers, including the summary procedures thereof.

Section 3. Scope and Components
3.1 Scope. This Circular shall apply to the Mandated Participants of the RPS OnGrid Rules and Qualified Suppliers.
3.2 Components.
3.2.1

Green Energy Tariff, set out in Rule 2 below — to provide price signals
on the commercial value of electricity generated from RE facilities,
resulting from a competitive process, and setting the tariff and/or price
cap as well as summary procedures for approval of RE supply by
regulated entities to their captive customers; and

32.2

Green Energy Auction, set out in Rule 3 below — to facilitate contracting
of supply from Qualified Suppliers to Qualified Customers under a
competitive process. To this end, the Green Energy Auction shall be
administered by the DOE through the Green Energy Auction
Committee ("GEAC").

Section 4. Definition of Terms. This Circular hereby adopts, by reference, the terms
defined in the EPIRA, RE Act, their respective implementing rules and regulations,
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the RPS On-Grid Rules, the Omnibus Guidelines, the WESM Rules, as well as the
relevant DOE Department Circulars.
Furthermore, the terms, as used in this Circular, shall be defined as follows:
4.1 "ARP" refers to the Auction Round Procedures applicable for each round of
Green Energy Auction conducted under this Circular. referred to in Section
Section 8 herein;
4.2 "Contracting Customer" refers to the Qualified Customers participating in a
Green Energy Auction and correspondingly entered into the Green Energy
Implementation Agreement;
4.3 "Energy Regulatory Commission" or "ERC" refers to the entity created by
the EP1RA as the regulator of the electric power industry;
4.4 "Green Energy Auction" refers to the competitive process for procurement of
RE supply undertaken pursuant to this Circular set out in Section 3.2.2 and
Rule 3 hereof;
4.5 "Green Energy Auction Committee" or "GEAC" refers to the RPS Composite
Team established by the DOE under DC2017-12-0015, with additional powers
and functions set out in this Circular;
4.6 "Green Energy lmplementation Agreement" or "GElA" refers to the
agreement among the Winning Bidders and Contracting Customers, as primary
parties, duly acknowledged by the Market Operator indicating, among others,
the matters covered by Rule 4 of this Circular;

4.7 "Green Energy Auction Reserve Price" or "GEAR Price" shall refer to the
maximum price offers in PhP/kWh set by the ERC pursuant to applicable law
and this Circular that shall operate as the cap(s) for Green Energy Auction
conducted for the period during which such tariffs are in effect;
4.8 "Green Energy Tariff" refers to 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;
4.9 "Levelized Cost of Energy" or "LCOE", also referred to as levelized cost of
electricity, is the industry term used to refer to the average total cost of building
a power generation asset per unit of total electricity generated over an assumed
lifetime;
4.10 "Mandated Participants" refers to the electric power industry participants
mandated to comply with the RPS annual requirements which includes entities
enumerated under the RPS On-Grid Rules;
4.11 "Market Operator" refers to the Autonomous Group Market Operator or the
Independent Market Operator, as defined in the implementing rules of EPIRA,
whichever is applicable;

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4.12 "Notice of Auction" shall refer to the written notice issued by the DOE referred
to in Section 8.1 herein;
4.13 "Notice of Percentage Volume Allocation" refers to the written notice issued
by the GEAC to the relevant parties referred to in Section 10.1 herein;
4.14 "Notice of GEAR Price" refers to the advisory to the DOE issued by the ERC
pursuant to Section 5.4 herein;
4.15 "NREB" refers to the National Renewable Energy Board created under Section
27 of the RE Act;
4.16 "OCSP" shall mean Open and Competitive Selection Process set out in the
Omnibus Guidelines;
4.17 "Percentage Volume Allocation" refers to the percentage share of a
Contracting Customer to the total generation from Winning Bidders pursuant to
Section 6.3;
4.18 "PSPP" refers to the Power Supply Procurement Plan prepared by a DU for the
acquisition of a variety of demand-side and supply-side resources to achieve
the cost-effective and optimal supply mix for its captive customers;
4.19 "Qualified Customers" refers to Mandated Participants under the RPS OnGrid Rules that are qualified to participate in the Green Energy Auction under
Section 7.2 herein;
4.20 "Qualified Suppliers" refers to: (a) in case of a Supply-Only Auction, RE
Developers registered with the DOE pursuant to the Omnibus Guidelines, or (b)
in the case of Integrated Supply-OCSP Auction, such parties eligible to
participate in the GEA as determined by the GEAC under Section 7.3 herein
and subject to the qualifications under the Omnibus Guidelines;
4.21 "RE Contract" refers to the service agreement between the Government,
through the DOE, and a RE Developer as defined under the RE Act;
4.22 "REC" refers to RE Certificates issued under the RPS On-Grid Rules under
DC2017-12-0015 and the RE Market Rules under DC2019-12-0016;
4.23 "RPS" or "RPS Program" refers to the Renewable Portfolio Standards
program mandated under Section 6 of the RE Act;
4.24 "RPS On-Grid Rules" refers to the RPS Rules for On-Grid Areas prescribed
under DOE Department Circular No. DC2017-12-0015; and
4.25 "Winning Bidder" refers to the Qualified Suppliers with volume offers that are
at an equal or lower value than the GEAR Price in a Green Energy Auction and
entered into a Green Energy Implementation Agreement under this Circular.

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RULE 2
GREEN ENERGY TARIFF
Section 5. Pricing Principles. The following principles shall be observed in the
development of the Green Energy Tariff:
5.1. General Principle. The Green Energy Tariff shall reflect the value of electricity,
resulting from a competitive process, that Qualified Suppliers are capable of
supplying based on the relevant delivery periods, thereby resulting in the
displacement of such volume of electricity that would have been sourced from
non-RE projects during the relevant trading (demand-supply) intervals.
5.2. Pricing Parameters. The resulting Green Energy Tariff for each Winning Bidder
in a Green Energy Auction shall not exceed the GEAR Price. The ERC, in
accordance with its mandate under EPIRA, shall determine, on an annual basis,
the GEAR Prices for peak and off-peak, or variable and non-variable power
supply, or for each RE technology, for the combined Luzon-Visayas grid and for
the Mindanao grid, which may consider, among others, the LCOE for each RE
technology and/or the parameters used in the pricing model utilized in setting
FIT rates for the relevant technologies and applying, to the fullest extent
possible, to the non-FIT RE technologies.
5.3. Pricing Unit. The GEAR Price and, consequently, the Green Energy Tariff shall
be set on a PhP/kWh-basis to reflect the value of actual energy generated by
the QUalified Suppliers and to be consistent with the compliance requirements
of the RPS On-Grid Rules.
5.4. Price Determination. These principles shall be observed in developing the
mechanism or methodology for the annual setting of the GEAR Price. Not later
than the 31st of May of every year, the ERC shall issue and provide to the DOE
Secretary, in strict confidentiality, the Notice of GEAR Price resulting from the
application of the mechanism or methodology referred to above, which shall be
disclosed pursuant to this Circular. The resulting Green Energy Tariff for each
Winning Bidder (which shall not exceed the GEAR Price under any
circumstances) shall qualify as authorized to be collected by the
DUs/Contracting Customers from their respective captive customers without
need of further action or approval from the ERC.

RULE 3
GREEN ENERGY AUCTION
Section 6. Framework for the Auction. The Green Energy Auction is hereby
established as a mechanism to facilitate contracting by Qualified Suppliers with
Qualified Customers through a competitive process or auction.
6.1. Offer. Qualified Suppliers can offer to supply a specified volume (MWh) of
electricity generated by their facilities to be covered by Green Energy
Implementation Agreements at prices at or below the GEAR Price determined
pursuant to this Circular. Based on the settlement-ready metered quantities
(MQ) and contract data (BCQ) from the Market Operator, the corresponding
6

RECs attributed to each MWh of electricity supplied under the Green Energy
Implementation Agreements shalt be issued to the Contracting Customers, in
accordance with the RE Market Rules and RPS On-Grid Rules.
6.2. RPS Requirements. The RPS requirements of the Qualified Customers shall be
established through their individual PSPPs (for the DUs) or their submissions to
the RPS Composite Team (for the RES) pursuant to the RPS On-Grid Rules.
The GEAC shall consolidate the RPS requirements of the Qualified Customers
that will be included in the auction, pursuant to Section Section 7 of this
Circular. The consolidated RPS requirements shall be the total supply volume
to be subject of the auction.
6.3. Setting of the Volume Allocation. To set the Percentage Volume Allocation in a
Supply-Only Auction, the GEAC shall compare the consolidated RPS
requirements with the total volume (MWh) registered by the Qualified Suppliers.
6.3.1

If the consolidated RPS requirements is equal to the total volume
registered by the Qualified Suppliers for the auction, the Percentage
Volume Allocation per Qualified Customer shall be the RPS
requirement of the Qualified Customer over the total volume registered
by the Qualified Suppliers;

63.2

If the consolidated RPS requirement is more than the total volume
registered by the Qualified Suppliers for the auction, the Percentage
Volume Allocation per Qualified Customer shall be the RPS
requirement of the Qualified Customer over the consolidated RPS
requirements; and

6.3.3

if the consolidated RPS requirement is less than the total volume
registered by the Qualified Suppliers for the auction, the higher price
offers shall be excluded until the total volume of the offers from
Qualified Suppliers equal that of the consolidated RPS requirements.
The Percentage Volume Allocation per Qualified Customer shall be the
RPS requirement of the Qualified Customer over the consolidated RPS
requirements, subject to limitations under applicable law.

6.4. Maximum Awarded Volume. Under a Supply-Only Auction, the total volume to
be awarded under each Green Energy Auction shall not be more than the
consolidated RPS requirement.
Section 7. Guiding Principles. The following principles shall be observed in the
conduct of a Green Energy Auction and the development of specific terms of
reference for each auction round:
7.1. Kinds of Auctions. At the option of the DOE, the auction may be conducted as:
7.1.1

7

Supply-Only Auction — whereby only the Green Energy Implementation
Agreement shall be awarded to the Qualified Suppliers, and only RE
projects already covered by RE Contracts, which includes those that
are under the pre-development and development stages, shall be
qualified to participate; or

7.1.2 Integrated OCSP-Supply Auction — whereby RE Contracts shall be
awarded together with Green Energy Implementation Agreement
resulting from an integrated process for OCSP-Supply Auction. In such
instances, the provisions of this Circular shall be considered in
formulating the rules applicable for such integrated process.
7.2. Qualified Customers. The Green Energy Auction is designed to assist
Mandated Participants under the RPS On-Grid Rules to comply with their RPS
requirements. Consequently, all Mandated Participants are deemed enrolled as
Qualified Customers in the Green Energy Auction; Provided, That a Mandated
Participant or a portion of a Mandated Participant's RPS requirement may be
excluded from a scheduled Green Energy Auction in the following cases:
7.2.1 Mandatory Exclusion. A Mandated Participant declared by the DOE
Secretary to be excluded from the auction based on the legal, technical
and financial position of the participant as recommended by the GEAC
and as provided in the Notice of Auction;
7.2.2

Voluntary Exclusion. A Mandated Participant may file with the GEAC,
not later than twenty (20) calendar days following the publication of the
Notice of Auction by the DOE referred to in Section 8.1 below, a written
certification signed under oath by the duly authorized officer of the
company/cooperative attesting that:
7.2.2.1 It will conduct its own competitive process, as applicable and in
accordance with relevant DOE regulations, to procure sufficient
RE supply and/or RECs to meet its own RPS requirements for
the relevant period;
7.2.2.2 In case of a DU, it has included in its PSPP, which was timely
filed with the DOE, the details of such competitive procurement
process, including the timelines and volumes to be contracted;
7.2.2.3 In the case of RES and generators, it has contracted or plans
to contract on its own, such sufficient quantity to cover its RPS
requirement; and
7.2.2.4 It acknowledges that the provisions of this Circular, particularly
in Section 13 hereof, shall not apply to the power supply
agreements procured separately from the Green Energy
Auction, such that the company/cooperative will need to
observe the general rules which apply to and obtain necessary
approvals for its power supply agreements.
The exclusion, once acknowledged and confirmed by the GEAC, shall
apply only to the specific auction round covered by the Notice of Auction
and the resolution issued by the company/cooperative.

7.2.3 Contracting Customers. The Qualified Customers that receive their
respective Percentage Volume Allocation for each Green Energy Auction
8

and execute the Green Energy Implementation Agreement shall be
referred to as Contracting Customers.
7.3. Qualified Suppliers. RE projects eligible to participate in the RPS under Section
10 of the RPS On-Grid Rules under DC2017-12-0015 shall be eligible to
participate in the Green Energy Auction, without prejudice to specific
qualifications for suppliers issued by the GEAC for each auction round.
73.1

The specific type of RE supply shall be identified in the terms of
reference to be issued for each auction round.

7.3.2

Qualified Suppliers can voluntarily participate by offering to supply all or
a portion of the electricity generated by their RE facilities for the volume
requirements available for each specific auction round and in
accordance with the specific terms of reference issued accordingly.

7.3.3 The Qualified Suppliers who are declared Winning Bidders for each
Green Energy Auction and sign the Green Energy Implementation
Agreement shall be referred to as the Winning Bidders.
Section 8. Auction Mechanics. The DOE may procure and maintain the necessary
technology or electronic platform to implement a transparent, fair and efficient
auction, including enabling of remote participation in and conduct of the auction. In
the development of the auction platform, the following general mechanics shall be
observed, with details for each auction round to be provided in the specific ARP to
be issued prior to each auction:
8.1. Publication of the Notice of Auction. The DOE shall publish the Notice of
Auction on its website and in at least one (1) newspaper of general circulation
not later than the 15th of June every year. A copy of the Notice of Auction shall
also be sent by electronic mail to the ERC and the identified officers or
representatives of each Mandated Participant.
8.2. Contents of Notice. Prior to each auction round and after public consultation,
the DOE shall issue and publish the Notice of Auction indicating, among others:
8.2.1

The schedule for the auction or auctions, as the case may be, for
Luzon-Visayas (singularly or separately) and for Mindanao, with due
consideration to interconnection limits and security of the grids, and the
dates of issuance of the specific terms of reference and ARPs for each
auction round;

8.2.2 Whether the auction(s) shall be Supply-Only and/or an integrated
OCSP-Supply process;
8.2.3 Advisory-reminder that all Mandated Participants under the RPS OnGrid Rules are deemed included in the auction without need of
registration or enrollment, unless otherwise excluded under Section 7.2
above; and

9

82.4 Acknowledgment to ERC of the adoption of the ERC-determined GEAR
Price received by DOE not later than the 31st of May of every year.
8.3. Auction Process.
8.3.1

The ARP shall include following information:
8.3.1.1 Auction timeline and milestones, including the dates for the
qualifying and the final auctions,
8.3.1.2 Total supply volume (MWh) subject to the auction,
8.3.1.3 Type of supply (variable or non-variable RE) required,
8.3.1.4 Delivery period and contract term,
8.3.1.5 Applicable annual line rental cap for the account of the
generator, and any excess of this cap shall be for the account
of customer, and
8.3.1.6 Applicable Green Energy Implementation Agreement
template(s), duly approved by ERG, providing for the terms and
conditions for supply, including the mechanism for Percentage
Volume Allocation, determination of average price, posting of
performance bond and any penalty arrangements for failure to
meet supply obligations or payment obligations, such as
disqualification from subsequent auctions and/or cancellation of
RE contracts, if applicable.

8.3.2

All Qualified Suppliers under Section 7.3 may register their intention to
participate in the Green Energy Auction. The registration shall be made
with the GEAC, providing the information that shall be required for the
specific auction round.

8.3.3 The GEAC shall verify the status of the RE projects sought to be
registered and confirm its availability to participate in the Green Energy
Auction pursuant to the specific requirements set out in the ARPs. The
GEAC shall issue and publish the list of Qualified Suppliers which shall
then be invited to participate in a Pre-Bid Conference to be conducted
at least twenty (20) calendar days before the commencement of the
auction date. The GEAC shall address the queries raised during the
pre-bid conference in a GEAC bulletin which may be issued within ten
(10) calendar days after the pre-bid conference.

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8.3.4

The auction shall be conducted by electronic bidding. All such Qualified
Suppliers shall be notified by the GEAC by electronic mail of their
qualification and shall be furnished user-specific electronic IDs to be
used for the auction.

8.3.5

On the date and time set for the auction, all Qualified Suppliers, upon
fulfillment of all requirements for participation, including posting of
bond,shall place their bids (MWh supply offer and PhP/kWh price) by
electronic submission using the user-specific Ids provided by the
GEAC.

8.3.6

The DOE shall thereafter disclose the GEAR Price upon opening of the
sealed envelope received from ERC containing such price. Only such
bids at or below the applicable GEAR Price shall be considered and
ranked from lowest to highest price to cover the total auction MWhvolume. All Qualified Suppliers declared as Winning Bidders shall sign
the Green Energy Implementation Agreement.

RULE 4
GREEN ENERGY IMPLEMENTATION AGREEMENT
Section 9. Components of the Agreement. The Green Energy Implementation
Agreement shall provide, among others, the following:
9.1. Supply components. The terms of supply by Winning Bidders to the Contracting
Customers, and the terms of receipt or delivery of supply to the Contracting
Customers in accordance with the Percentage Volume Allocation, taking into
consideration the term or duration of contract, and whether or not the RE
supply is for peak or off-peak, or variable or non-variable requirements of the
Contracting Customers;
9.2. Payment components. The payment obligation by each Contracting Customer
for actual energy delivered in accordance with the Percentage Volume
Allocation based on the average price P/kWh in accordance with
SectionSection 10 below; and
9.3. Allocation component. The implementation by the Winning Bidders of the
Percentage Volume Allocation in the determination of hourly actual energy
delivered corresponding to the RECs and computation by the Market Operator
of the average price payable in accordance with this Circular.
9.4. Other terms and conditions. The Winning Bidders and Contracting Customers
other than DUs may agree on terms and conditions supplemental to the terms
of the GEIA such as, but not limited to, confidentiality, data privacy, anticorruption and money laundering, taxes, anti-competition, business principles,
dispute resolution or similar matters, provided that such other terms and
conditions are not contrary to the GEA Policy and other applicable laws.
Section 10. Percentage Volume Allocation and Award.
10.1.Percentage Volume Allocation. The GEAC shall conduct a final evaluation of
the total volume for contracting by the Contracting Customers and the total
volume to be delivered by each of the Winning Bidders. The GEAC shall
determine the Percentage Volume Allocation for such auction round.
10.1.1 Each Winning Bidder shall be paid in accordance with the price at
which it offers (paid-as-bid) to supply the actual volumes delivered.
10.1.2 The Contracting Customers shall pay the average price of all
volumes dispatched for the relevant billing period. The volumes
11

dispatched for the relevant billing period shall be calculated by the
Market Operator.
10.1.3 The GEAC shall regularly review the Percentage Volume Allocation,
award and settlement.
For purposes of illustration of the offer allocation, settlement and payment,
see Annex "A."
10.2. Notice of Percentage Volume Allocation. The Notice of Percentage Volume
Allocation shall be issued by the DOE Secretary, as recommended by the
GEAC, to all relevant parties stating that the parties are given thirty(30)
calendar days to submit a signed board resolution authorizing the execution of
the Green Energy Implementation Agreement.
10.3. Submission of the Signed Board Resolution and Execution of Green Energy
Implementation Agreement. Within the period prescribed in the preceding
clause, the parties shall submit a copy of the signed board resolution to the
GEAC, together with executed originals ofthe Green Energy Implementation
Agreement, signed in counterparts, using the templates provided with the
ARPs. The parties shall be responsible for coordinating with the Market
Operator. If the parties need more time to execute the Green Energy
Implementation Agreement or decide not to proceed, they shall advise the DOE
in writing within the same period indicating the reasons and mutually agreed
way forward, as applicable.
Section 11. Policy Implementation. The DOE shall conduct the Green Energy
Auction on an annual basis, unless otherwise determined by the DOE, upon the
recommendation of the NREB on the basis of the RPS requirements of Mandated
Participants and the NREP.
Section 12. Role of the Market Operator. The Market Operator shall enter into the
Green Energy Implementation Agreement to acknowledge the obligations of the
parties therein and calculate the average price PhP/kWh as set out in
SectionsSection 9 and Section 10 herein. For the avoidance of doubt, the Market
Operator shall continue to perform the responsibility of issuing the settlement data to
the Winning Bidders and Contracting Customers and facilitating the payment to the
extent required under the WESM Rules.
Section 13.Compliance with CSP. In view of the requirements under DOE
Department Circular No. DC2015-06-0008, as amended by Department Circular No.
DC2018-020003, a DU that contracts for RE supply through the Green Energy
Auction shall be considered as having complied with the Competitive Selection
Process requirements.
Section 14 Compliance with RPS. The volume of RE supplied pursuant to Green
Energy Implementation Agreement shall be counted for purposes of their compliance
with the Renewable Portfolio Standards, as provided in DOE Department Circular
No. DC2017-12-0015.

12

Section 15. Regulatory Support. To ensure that the provisions of this Circular are
implemented properly and to encourage new investments in the RE sector while
ensuring customer protection, the ERC is hereby responsible for the approval of the
following:
15.1 Green Energy Implementation Agreement template,
15.2. the methodology for setting the GEAR Price(s) and the notification to the DOE
of the GEAR Price(s) prior to each Green Energy Auction, and
15.3. In the event that the Winning Bidder is an embedded generator, the appropriate
wheeling charges on a per kWh basis for embedded generation.

RULE 5
FINAL PROVISIONS
Section 16.Non-Diminution of Vested Rights. No provision of this Circular shall be
taken to diminish any right vested by virtue of existing laws, contracts, or
agreements.
Section 17. 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 18. Repealing Clause. All previous issuances, rules and regulations
inconsistent with this Circular are hereby repealed, amended or modified
accordingly.
Section 19. Effectivity. This Circular shall take effect fifteen (15) days after its filing
with the University of the Philippines Law Center — Office of the National
Administrative Register and publication in at least two (2) newspapers of general
circulation.

Repubhc of no
DEPARTMENT OF ENEROY

N REPLYING PLY. CITE:

Ii Il

DOE.AGC.20003578

at the Department of Energy,
Issued on
Energy Center, Merritt Road, Fort Bonifacio, Taguig City, Metro Manila.

13

ANNEX A
illustration of Percentage Volume Allocation, Award and Payment

14

ANNEX A
Sample Hourly Allocation and Billed Amounts by Qualified Suppliers to each Qualified Customer

Qualfled Supplier Details:
Qualified
Supplier
(a)
1
2
3
4
5
6
7
8
9
10
n

Market Price Offer Energy Generation
(PhP/kWh)
(Percent Share)
(b)
(C)
3
4
4.1
4.5
4.5
5
5.1
5.1
5.2
5.3
x

1493%
4.48%
8.96%
10.45%
29.85%
5.22%
2.99%
7.46%
6.72%
8.96%
100.00%

Generation per Interval (MWh) - from Market Operator
(d)
1

2

3

11

12

13

22

23

24

437.94
131.38
262.76
306.56
875.88
153.28
87.59
218.97
197.07
262.76

415.46
124.64
249.27
290.82
830.91
145.41
83.09
207.73
186.96
249.27

400.69
120.21
240.41
280.48
801.38
140.24
80.14
200.34
180.31
240.41

590.42
177.13
354.25
413.29
1,180.84
206.65
118.08
295.21
265.69
354.25

592.62
177.79
355.57
414.83
1,185.24
207.42
118.52
296.31
266.68
355.57

590.94
177.28
354.57
413.66
1,181.89
206.83
118.19
295.47
265.92
354.57

584.61
175.38
350.76
409.23
1,169.22
204.61
116.92
292.30
263.07
350.76

548.59
164.58
329.15
384.01
1,097.18
192.01
109.72
274.30
246.87
329.15

512.14
153.64
30729
358.50
1,024.28
179.25
102.43
256.07
230.46
307.29

Total
(MWh)
(e)
12,511.73
3,753.52
7,507.04
8,758.21
25,023.45
4,379.10
2,502.35
6,255.86
5,630.28
7,507.04
83,828.57

Billed Amount
(Thousand PhP)
(f)
37,535.18
15,014.07
30,778.85
39,411.94
112,605.54
21,895.52
12,761.96
31,904.90
29,277.44
39,787.29
370,972.70

Qualified Supplier 1 Allocation and Billed Amounts to Qualified Customers

Qualified Customer
(g)

Percent Volume
Allocation
(Percent Share)

n
1
2
3
4
5

100%
70%
5%
10%
12%
3%

Allocation per Interval (MWh) calculated by Qualified Supplier
(d)

437.94
306.56
21.90
43.79
52.55
13.14

2

3

11

12

13

415.46
290.82
20.77
41.55
49.85
12.46

400.69
280.48
20.03
40.07
48.08
12.02

590.42
413.29
29.52
59.04
70.85
17.71

592.62
414.83
29.63
59.26
71.11
17.78

590.94
413.66
29.55
59.09
70.91
17.73

22 * 23,

24

Total
(MWh)
(e)

Billed Amount
(Thousand PhP)
(f)

584.61
409,23
29.23
58.46
70.15
17.54

548.59
384.01
27.43
54.86
65.83
16.46

512.14
358.50
25.61
51.21
61.46
15.36

12,511.73
8,758.21
625.59
1,251.17
1,501.41
375.35

37,535.18
26,274.63
1,876.76
3,753.52
4,504.22
1,126.06

2,741.81
195.84
391.69
470.02
117.51

2,572.89
183.78
367.56
441.07
110.27

2,401.95
171.57
343.14
411.76
102.94

58,680.00
4,191.43
8,382.88
10,059.43
2,514.86
83,828.57

259,680.89
18,548.64
37,097.27
44,516.72
11,129.18
370,972.70

Total Allocations and Billed Amounts per Qualified Customer

lifled
omer

I
2
3
4
5
n
Notes:

Average Market
Price (PhP/kWh)

4.43
4.43
4.43
4.43
4.43
x

Allocation per Interval (MWh) - calculai

Percent Volume
Allocation
(Percent Share)
(h)
70%
5%
10%
12%
3%
100%

2,053.93 1,948.49
146.71
139.18
293.42
278.36
352.10
334.03
88.03
83.51

1,879.23
134.23
268.46
322.15
80.54

2,769.07
197.79
395.58
474.70
118.67

2,779.38
198.53
397.05
476.47
119.12

2771.53
197.97
395.93
475.12
118.78

(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(I)

"Qualified Supplier' refers to the Winning Bidder.
"Market Price Offer" refers to the bid price by the Qualified Supplier, expressed in Ph P/kWh.
"Energy Generation" refers to the percent share of a Qualified Supplier to the Total Energy Generation, expressed in %.
"Generation per Interval" refers to the hourly generation of a Qualified Supplier, expressed in MWh.
"Total" refers to the Energy Generation of a Qualified Supplier for the 24-hour period, expressed in MWh.
"Billed Amount" refers to the amount to be paid to the Qualified Supplier for its Energy Generation, expressed in Thousand PhP.
"Qualified Consumer" refers to the offtaker of Energy Generation of Qualified Supplier/s.
"Percent Volume Allocation" refers to the percent share of a Qualified Customer to the Total Energy Allocation, expressed in %.
"Average Market Price" (AMP) refers to the Settlement Price over the Total Energy Generation, expressed in Ph P/kWh. Hence, AMP = (f)/(e).
"Allocation per Interval" refers to the hourly energy allocation of a Qualified Customer, expressed in MWh.
"Total" refers to the Total Energy Allocation of a Qualilfied Customer for the 24-hour period, expressed in MWh.
"Settlement Price" refers to the amount to be paid by a Qualified Customer for its Energy Allocation, expressed in Thousand PhP.