RE projects freed from red tape

The guidelines also introduced opportunities for additional investments within the contract areas. Developers can apply for additional renewable energy (RE) contracts and potentially benefit from extended contract terms and incentives for investments that increase capacity.

To facilitate this transition, enhancements will be made to the Energy Virtual One-Stop Shop (EVOSS) System for five months from the effectiveness of the new guidelines, starting from 25 June. 

During this period, the processing of letters of intent (LoI) and RE applications will be temporarily paused.

Applications submitted before the specified date will continue to be processed by the DoE-Renewable Energy Management Bureau (DoE-REMB).

The enhancement period will also be utilized for updating de-listed RE contracts, modifying the EVOSS System, coordinating with relevant government agencies, and establishing a procedure for real-time updates of available areas for service or operating contract applications.

The DoE-REMB has initiated orientation sessions, commencing with national government agencies on 13 June, to ensure necessary adjustments. 

Orientation sessions for private stakeholders, guiding them through the new application process, will be posted on the DoE website.

To facilitate ease of doing business in the energy sector and meet renewable energy (RE) goals, the Department of Energy (DoE) has streamlined the application process for renewable energy projects.

“Renewable energy industry is not anymore in its infancy stage, unlike when we first issued the omnibus guidelines for applications,” Energy Undersecretary Sharon Garin told reporters at a press briefing on Friday.

“We have to revise the omnibus guidelines for it to choose for us to be able to filter the serious and legitimate companies that are determined o construct and finish their projects on time,” Garin said. 

Under the revised guidelines for RE contracts, developers may now initiate permit processing, site surveys, and feasibility studies before the official commencement of the 25-year contract. 

The DoE will issue a certificate of authority (CoA) to developers permitting them to engage in these activities, previously only permitted after contract approval and signature by the Department of Energy secretary.

The validity of the CoA differs based on the project type. 

Biomass, geothermal, hydropower, ocean, and onshore and offshore wind projects are valid for three years while floating solar projects are valid for two years. Land-based solar projects have a validity period of one year. 

Power to recall

The DoE holds the authority to recall the CoA if the developer fails to demonstrate adequate effort in undertaking the required activities within the stipulated periods.

Furthermore, the agency has streamlined the process for duty-free importation incentives.

Developers of certain projects can now obtain a Certificate of Registration (CoR) upon signing the contract or providing proof of financial closing. This flexibility allows them to avail of duty-free importation incentives during the project development stage.