Renewable energy (RE) developers are now required to secure a Certificate of Authority (CoA) before signing a project contract, enabling them to carry out essential surveys and pre-feasibility activities before the official contract begins.
The new requirement was announced by the Department of Energy (DoE) on Sunday, which is part of the revised omnibus guidelines released in June this year enhancing and expediting the work programs of RE developers.
The DoE said the CoA is valid for five years for offshore wind projects, three years for biomass, geothermal, hydropower, ocean and onshore wind projects, two years for floating solar and one year for land-based solar projects.
Also, the updated guidelines simplify the process for obtaining incentives for RE initiatives.
As such, developers can now also acquire a certificate of registration (CoR) from the DoE once their projects are commercially viable. For biomass and solar energy projects, the CoR can be secured after achieving financing closure.
Further, the Energy Department said it is also working to enhance the permitting processes through its Energy Virtual One-Stop Shop System, which is currently undergoing various stages of development, including further streamlining and testing.
“These streamlined procedures are designed to promote investments in the sector by reducing bureaucratic hurdles and avoiding service contract termination, ultimately supporting our country’s transition to a more sustainable energy landscape,” said Energy Undersecretary Rowena Cristina Guevara.
Easing termination
At least 105 RE projects are currently lined up for termination due to non-compliance with project timelines, most of which were awarded in 2017 and 2019, according to the DoE.
Common reasons for these delays include failure to secure possessory rights or system impact studies that indicate an inability to connect to the grid.
Among the 105 projects at risk, 88 are either delayed in their pre-development timelines or not progressing at all.
This includes 53 solar projects, 17 hydropower projects, 10 wind projects, five geothermal projects, and three biomass projects.
The DoE has implemented a clear contract termination process for RE projects.
For existing solar energy service contracts, developers have two years to complete the pre-development stage, which encompasses obtaining permits, conducting surveys, performing feasibility studies, and securing possessory rights.
If a developer fails to submit the declaration of completion or show reasonable progress within this timeframe, the DoE’s Renewable Energy Management Bureau will issue a show-cause order requesting an explanation for the delay.