DOE clears more roadblocks to clean energy goal
MANILA, Philippines — The Department of Energy (DOE) is removing several roadblocks in the construction of renewable energy projects to ensure the timely completion of such facilities and warrant the attainability of the country’s ambitious targets.
In a virtual briefing on Friday, Energy Undersecretary Sharon Garin said revising the omnibus guidelines for awarding renewable energy service contracts was needed to give proponents more time to focus on the construction of projects without being burdened by various obstacles along the way.
The tweaks were introduced via Department Circular No. 2024-06-0018, which also covers the registration of developers nationwide. The revised guidelines will take effect on June 25.
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The DOE will now issue a certificate of authority (COA) allowing a developer to obtain permits, and conduct surveys and other related activities needed for pre-feasibility studies even before its 25-year service contract begins.
Previously, the certification was issued only after the Energy Secretary had approved and signed the contract, with the above activities interfering with the construction of the project.
The validity period of the COA would differ depending on the project type: three years for biomass, geothermal, hydropower, ocean, and onshore and offshore wind projects; two years for floating solar; one year for land-based solar facilities.
The DOE may also revoke the COA in case the developer fails to demonstrate reasonable efforts in undertaking the required activities within the prescribed periods.
Certain developers may also secure a certificate of registration proving they are registered with the DOE.
The certificate, which would be issued upon contract signing or proof of financial closing, also provides the developer flexibility in availing of duty-free importation incentives during the development stage.
Guidelines
Entities may also apply for additional renewable energy service contracts and potentially enjoy extended contract terms and incentives for capacity-increasing investments.
In introducing the changes, Garin added: “We have to revise the omnibus guidelines in order … to filter the serious and legitimate companies that are determined to construct their projects and finish their projects on time, on budget.”
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In introducing the guidelines in 2019, the DOE saw the need for harmonized policies in order to lure investors into the industry.
With more interest from outside players since then, the amended guidelines would finally cater to “a mature [RE] market,” Garin said.
“We don’t need to encourage them to come in nor do we need to market the country because by itself. We have so many applications and so many contracts already issued. So, that means that you don’t need to baby the industry,” she added.
The DOE has awarded 1,327 renewable energy service contracts as of March 31 this year, mostly for solar and hydropower projects, which are now in different stages.
Garin said these service contracts were “more than enough to cover our needs in the future” and attain the 35-percent clean energy share in the power generation mix by 2030, further increasing to 50 percent by 2040.
