The Department of Energy (DOE) has streamlined the application process of renewable energy (RE) to enhance business convenience and support national RE goals.
Changes to the Application Process
During a virtual press briefing on Friday, DOE Secretary Raphael Lotilla announced that the new guidelines now permit renewable energy (RE) developers to initiate permit processing, surveys, and feasibility studies before the official 25-year contract commences.
Under the new guidelines, developers will be granted a Certificate of Authority (COA) from the DOE, allowing them to undertake these activities that were previously only allowed after contract approval.
The validity of the Certificate of Authority (COA) varies based on the type of project: it is three years for biomass, geothermal, hydropower, ocean, and wind projects, two years for floating solar, and one year for land-based solar. The Department of Energy (DOE) can revoke the COA if developers do not make reasonable efforts within the given timeframe.
Updated Incentives and Contract Extensions
The Department of Energy (DOE) has introduced simplified duty-free import incentives for developers. Developers can obtain a Certificate of Registration upon signing the contract or closing the financial deal. This allows them to access duty-free import benefits during project development.
Furthermore, the new guidelines allow developers to request additional renewable energy (RE) contracts and potentially extend contract terms and incentives for capacity increases.
Implications for Achieving Renewable Energy Goals
“On June 4, the newly revised omnibus renewable energy (RE) guidelines were signed, published, and are set to take effect on June 25, 2024,” according to DOE Undersecretary Sharon Garin.
Garin explained that the omnibus guidelines were overhauled because the renewable energy industry has outgrown its infancy since its initial issuance.
She also mentioned that the DOE has already awarded 1,300 RE service contracts in various technologies, totaling 62 gigawatts in capacity.
Garin added that these awarded service contracts would enable the country to reach its RE targets of attaining a 35 percent share in the energy mix by 2030, with a further increase to 50 percent by 2040.
Temporary Suspension of the EVOSS System
The Energy Virtual One-Stop Shop (EVOSS) System will be suspended for over five months starting June 25 for an enhancement process. New Letters of Intent (LOI) and RE applications will be temporarily paused during this period. However, applications submitted before this date will continue to be processed.
The Department of Energy (DOE) will update de-listed RE contracts, modify the EVOSS System, and coordinate with other government agencies and local units. The Renewable Energy Management Bureau started orientation sessions with concerned national agencies on June 13 and will guide private stakeholders through the new process, with information on the DOE website.
According to Lotilla, these new guidelines are a significant step towards faster RE project implementation, fostering innovation, and attracting investments across the archipelago.