# Department Circular No. DC2025-03-0004 **Title:** Amendment to Department Circular No. DC2021-11-0036 Titled "Providing the Revised Guidelines for the Green Energy Auction Program in the Philippines" **Issuing authority:** DOE Secretary Raphael P.M. Lotilla **Issued:** March 9, 2025 **Pages:** 3 (image-based; OCR output at raw/_ocr/regulations/dc2025-03-0004.txt) **Amends:** DC2021-11-0036 --- ## Whereas Clauses - DC2021-11-0036 issued the revised GEAP Guidelines - Under the GEAP, the FIT paid to winning RE facilities is fixed at the Winning Bidder's GET on a pay-as-bid basis (GEAP Guidelines §4.6) - ERC Resolution No. 16, Series of 2010 (FIT Rules) §2.10: ERC shall adjust FITs annually for the entire period of applicability, using a benchmarking indexation formula for inflation and FOREX pass-through - ERC Resolution No. 18, Series of 2014 (REPA/RESA Templates): recognizes "FIT rate" may be adjusted by ERC per FIT Rules §2.10 - GEAP Guidelines §16: GEA adopts FIT Rules Regulatory Framework except that pricing is governed by §8 (GEAR mechanism) — ambiguity remained on whether GET indexation applies - There is a need to clarify that FIT Rules indexation (ERC Resolution No. 16 §2.10) applies to GET under GEAP notwithstanding GEAP Guidelines §4.6 - DC2024-06-0018 (Revised Omnibus RE Guidelines), effective 25 June 2024: grants RE Developers the option to receive a Certificate of Authority (COA) after RE Application approval but before RE Contract execution - COA: certificate signed by DOE exclusively authorizing an RE Developer to procure permits and tenurial instruments for exploration, development, construction, and commercial operation within a specified area (pre-contract privilege for permits/tenurial instruments) - COA-holders should be allowed to participate in GEAP — requires amending definition of "Qualified Suppliers" - Posting of Notice of Auction on DOE website shall serve as sufficient notice to all stakeholders without need for newspaper publication - Online public consultation on draft DC held on 14 February 2025 --- ## Section 1 — Amends §4.12: Qualified Suppliers Definition **New §4.12:** > "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." [DC2025-03-0004, §1, 2025-03-09] *Prior definition* (inferred from whereas clauses): Qualified Suppliers = RE Developers/Generators registered per Omnibus RE Guidelines (required a full RE Contract). *Change:* COA-holders (developers with approved RE Applications but not yet holding a full RE Contract) are now eligible to participate in GEAP. --- ## Section 2 — Amends §9.1: Publication of Notice of Auction **New §9.1:** > "9.1 Publication of the Notice of Auction. The DOE shall publish the Notice of Auction on its website. xxx." [DC2025-03-0004, §2, 2025-03-09] *Change:* Removes prior requirement for publication in a newspaper of general circulation. DOE website posting now sufficient notice to all GEAP stakeholders. --- ## Section 3 — Amends §16: Adoption of FIT Rules — GET Indexation Clarified **New §16:** > "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." [DC2025-03-0004, §3, 2025-03-09] *Change:* Explicitly applies ERC annual indexation (inflation + FOREX pass-through per ERC Resolution No. 16 §2.10) to GET for all GEAs conducted after this circular's effectivity. The GET is no longer purely the fixed pay-as-bid offer price — it will be adjusted annually by ERC using the FIT indexation formula. --- ## Sections 4–6: Standard Clauses - Separability, Repealing, Effectivity (takes effect 15 days after publication in at least two newspapers of general circulation; filed with UPLC-ONAR) *Issued: March 9, 2025* *Signed: DOE Secretary Raphael P.M. Lotilla*