DOE bares new guidelines for renewable energy development

MANILA, Philippines — The Department of Energy (DOE) has issued new guidelines simplifying the application process for renewable energy (RE) development to boost the country’s clean energy transition.

Under the new guidelines, RE developers may now commence the processing of permits and the conduct of surveys and other feasibility activities before the official 25-year contract term starts.

According to the agency, a certificate of authority (COA) will be issued to RE developers to proceed with the activities, which were previously permitted after the contract was approved and signed by the DOE chief.

The COA’s validity period depends on the project type, with biomass, geothermal, hydropower, ocean and wind projects having three years and land-based solar and solar floating projects having one and two years, respectively.

The certificate, however, may be recalled if the developer fails to demonstrate reasonable efforts to complete the required activities within the allotted time frames, the DOE warned.

Furthermore, the agency has also expedited the application procedure for duty-free importation incentives.

Upon contract signing and financial closing documentation, the DOE said developers can now obtain a certificate of registration to avail of importation incentives during the project development stage.

The revised guidelines, set to take effect on June 25, would also allow developers to apply for additional RE contracts, provided that new capacity will be generated from the investment.

“The implementation of these new guidelines marks a significant step toward facilitating faster RE project implementation, fostering innovation and attracting investments across the archipelago,” Energy Secretary Raphael Lotilla said yesterday.

To facilitate the transition, the DOE said the Energy Virtual One-Stop Shop (EVOSS) System will undergo an enhancement for five months starting from the effectivity of the guidelines.

The processing of letters of intent and RE applications, in turn, will be temporarily halted due to the system improvement.

“However, RE applications submitted before said date will continue to be processed by the DOE-Renewable Energy Management Bureau,” the agency noted.

As of the end of March 2024, over 1,300 service contracts with a total potential capacity of more than 137,000 megawatts had been awarded to RE developers.

The projects consist of hydropower (428), ocean energy (nine), geothermal (35), wind (276), solar (503) and biomass (76), which included three non-power facilities, DOE data showed.