Department Circular No. __________________________

Providing Rules And Guidelines Governing The Establishment Of The Renewable Portfolio Standard (RPS)

WHEREAS, Republic Act No. (RA) 7638 or the "Department of Energy (DOE) Act of 1992" declares as a policy of State, among others, to ensure a continuous, adequate, and economic supply of energy through the integrated and intensive exploration, production, management, and development of the country’s indigenous energy resources;

WHEREAS, RA 9136 or the “Electric Power Industry Reform Act” (EPIRA) provides that it is the declared policy of the State to ensure the quality, reliability, security and affordability of the supply of electric power;

WHEREAS, RA 9513 or the “Renewable Energy Act of 2008” (RE Act) provides that the it is the declared policy of the State to increase the utilization of renewable energy (RE) by institutionalizing the development of national and local capabilities in the use of RE systems, and promoting their efficient and cost-effective commercial application by providing fiscal and non-fiscal incentives;

WHEREAS, the EPIRA mandates the DOE to encourage private sector investments in the electricity sector and promote the development of indigenous and RE resources;

WHEREAS, Section 6, Chapter III of the RE Act provides that all stakeholders in the electric power industry shall contribute to the growth of the RE industry in the country;

WHEREAS, Rule 2, Part II of the Implementing Rules and Regulations (IRR) of the RE Act provides that the RPS as a policy mechanism which places an obligation on electric power industry participants such as generators, distribution utilities, or suppliers to source or produce a specified fraction of their electricity from eligible RE Resources;

WHEREAS, the DOE conducted public consultations and Technical Working Group meetings on the proposed rules governing the establishment of the RPS nationwide from 2011 to 2013;

WHEREAS, on 26 June 2015, the DOE issued Department Circular No. DC2015-07-0014 or the “Guidelines for the Policy of Maintaining the Share of RE in the Country,” a policy adopting at least thirty percent (30%) share of RE in the country’s total power generation capacity through the holistic implementation of the Feed-in Tariff (FIT) System and other pertinent provisions under RE Act and its implementing rules and regulations;  

WHEREAS, in light of the robust developments in the exceeding installation targets for solar and wind for the period, the National RE Plan (NREP) is presently undergoing review and updating;

WHEREAS, Part II Rule 2 of the IRR of the RE Act provides that the DOE will issue the RPS upon the recommendation of the National Renewable Energy Board (NREB);

WHEREAS, in a letter dated 10 May 2016 the NREB endorsed and recommended to the DOE the proposed RPS Rules with revisions on the minimum incremental percentage of RE through NREB Resolution No. 3, series of 2014;

WHEREAS, the Philippines is committed to reduce emission as a signatory to the Paris Agreement which aims to reach global peaking of greenhouse gas emissions as soon as possible, recognizing that peaking will take longer for developing country Parties and to undertake rapid reduction in the context of sustainable development and efforts to eradicate poverty; and

WHEREAS, on 16 June 2016, the DOE conducted a final public consultation on the revised RPS Rules reflecting these developments.

NOW THEREFORE, upon the recommendation of the NREB, the DOE hereby issues, adopts and promulgates the following rules and regulations: