QuestionsQuestions (DOE DEPARTMENT CIRCULAR NO. DC 2013-05-0009)
The circular cites Section 7 of RA 9513 (Renewable Energy Act of 2008) as the mandate to establish a feed-in tariff system for electricity produced from eligible renewable energy technologies.
It states that, pursuant to the IRR (via Department Circular DC 2009-05-008), electric power industry participants are obligated to source electricity from FIT-eligible RE generation at a guaranteed fixed price for a period to be determined by the ERC.
The circular notes that ERC Resolution No. 16, Series of 2010 set the duration of FIT at twenty (20) years for eligible on-grid RE plants.
The circular provides the following: Wind—₱8.53/kWh with 0.5% degression after 2 years; Biomass—₱6.63/kWh with 0.5% degression after 2 years; Solar—₱9.68/kWh with 6% degression after 1 year; Run-of-River Hydropower—₱5.90/kWh with 0.5% degression after 2 years. Ocean is noted as not included in the table due to separate treatment based on installation targets.
It covers only RE plants that will be in commercial operation after the effectivity of the Act (RA 9513). It also includes a non-retroactivity principle excluding projects with approved tariff rates or pending ERC applications filed before the circular’s effectivity.
Only RE Developers with valid and subsisting Renewable Energy Service Contracts (RESCs) may apply for eligibility and inclusion of their project under the FIT System.
The developer must indicate in its application that its Declaration of Commerciality is based on the approved FIT rate.
It must submit a notarized proof and/or declaration that the project is not bound under any contract to supply generated energy to any Distribution Utility (DU) or consumer, consistent with Section 1.4 of the FIT Rules.
The DOE shall complete processing within thirty (30) working days from receipt of the Declaration of Commerciality.
It means the whole plant including substation and other facilities for grid/distribution connection is in place but not yet connected. It is deemed attained if construction is at least 80% completed as determined from the EPC contract or the construction/development timeline under the approved Work Plan.
The developer informs DOE; DOE then conducts site validation/inspection within 15 working days. DOE issues confirmation/denial within 15 working days from the last day of site validation. If confirmed, DOE nominates eligibility to ERC within 5 days from issuance of confirmation, provided the interconnection facility is fully in place.
No. The circular explicitly states that the DOE nomination to the ERC shall not be construed as giving the RE Developer the right to be included in the FIT eligible projects.
After the DOE validates Successful Commissioning, DOE issues the COE for FIT Eligibility within 15 working days. It is issued on a first-come-first-serve basis, and only to developers holding a Certificate of Confirmation of Commerciality.
The DOE issues COE until the maximum installation target per technology is fully subscribed. The COE indicates the installed capacity eligible for the FIT rate and the actual date of Commercial Operation.
The developer may (1) enter into a bilateral agreement with a Distribution Utility (DU) or off-taker, or (2) export power directly to the Wholesale Electricity Spot Market (WESM), subject to ‘must-dispatch’ guidelines. This addresses what happens after FIT capacity is fully subscribed while allowing continued participation under other arrangements.
The circular does not apply to RE plants with approved tariff rates or those with pending applications filed for ERC approval before the circular’s effectivity.
The DOE maintains a monitoring board on its website showing status of FIT eligibility implementation, provides weekly updates on conversions and issuance of Certificate of Confirmation of Commerciality and COEs, and conducts periodic site inspections with monthly postings of project status.