Question & AnswerQ&A (EXECUTIVE ORDER NO. 232)
The purpose is to amend Executive Order No. 462, series of 1997, to accelerate the development and utilization of ocean, solar, and wind energy resources by encouraging greater private sector investment and participation in new renewable energy activities and projects.
The Department of Energy (DOE) is primarily responsible for the implementation.
It focuses on ocean, solar, and wind (OSW) energy resources.
The private sector can participate, subject to existing rights and through production sharing contracts awarded by the DOE Secretary.
Production sharing contracts are awarded either through public bidding or negotiation after consultation with host communities and local government units.
Projects must harness OSW resources on public domain lands or offshore waters within Philippine territory, contiguous zone, and exclusive economic zone; and have a net electric output of more than a specified MW for sale to an electric utility.
They are considered Private OSW Projects and are subject to Section 3 of the Executive Order.
The GS is determined through bidding or negotiation between the DOE and the contractor and includes a signature bonus and a production bonus.
The government shall waive the signature bonus on the first project to reduce pre-operating costs for the contractor.
The government share is limited so that electricity prices do not exceed contracted selling rates to electric utilities, and the production bonus shall not exceed 15% of net proceeds.
Assistance includes obtaining fiscal and non-fiscal incentives, registration as pioneer industry, allowing cost charging of feasibility studies to current projects, securing access to lands/offshore areas, and conducting studies on the valuation of intermittent OSW energy.
It takes effect 15 days after its publication in at least two newspapers of general circulation.
The DOE, in coordination with concerned agencies, must issue amendments to the existing rules and regulations within 60 days after effectivity.
Yes, hybrid systems are encouraged considering technical and economic aspects.