WHEREAS, under Section 2 of Republic Act No. 9138, otherwise known as the Electric Power Industry Reform Act of 2001 (EPIRA), it is the declared policy of the State to among others, promote the utilization of indigenous and new and renewable energy resources in power generation in order to reduce dependence on imported energy, and ensure the quality, reliability, security and affordability of the supply of electric power;

WHEREAS, Section 37 of EPIRA mandates the Department of Energy (DOE) to encourage private sector investments and broaden the ownership base in the electric power industry and promote the development of indigenous and renewable energy resources;