Definition of Policy

Section 2 of RA 7638 (DOE Act of 1992) mandates the DOE to prepare, integrate, coordinate, supervise and control all plans, programs, projects and activities of the Government relative to energy exploration, development, utilization, distribution and conservation.

RA 9513 (An Act Promoting the Development, Utilization and Commercialization of Renewable Energy Resources and For Other Purposes “RE Act"), declares as a policy of the State to accelerate the exploration and development of Renewable Energy (RE) Resources to achieve energy self-reliance through the adoption of sustainable energy development strategies.

Section 9 of the RE Act provides that the DOE shall establish a GEOP which provides end-users the option to choose RE Resources as their sources of energy.

18 July 2018, the DOE issued Department Circular (DC) No. DCZO18-07-0019. entitled “Promulgatlng the Rules and Guidelines Governing the Establishment of the Green Energy Option Program Pursuant to Renewable Energy Act of 2008," establishing the GEOP (the “GEOP Rules”).

The second paragraph of Section 11(a)(i) of the GEOP Rules provides that the DOE shall, after conduct of public consultations, promulgate the necessary guidelines and procedures for issuance of permits to RE Suppliers.

The DOE and the National Renewable Energy Board (NREB) conducted a series of public consultations on the draft GEOP Operating Permit Guidelines on 18 June 2019, 27 June 2019, 11 July 2019 and 25 July 2019 in Cebu, Davao, Batangas and Pampanga, respectively.

Section 2. Coverage.

This shall prescribe the guidelines and procedures in the issuance, administration, and revocation of GEOP Operating Permits to RE Suppliers.

All contracts under the GEOP shall cover a minimum of 100kW, regardless of percentage required by the End-User.

Section 3. Scope:

1. End-Users
2. RE Developers
3. RE Suppliers
4. Distribution Utilities
5. Retail Electricity Suppliers
6. Philippine Electricity Market Corporation and/or the Independent Market Operator
7. Supplier of Last Resort
8. Central Registration Body
9. RE Registrar
10. National Grid Corporation of the Philippines
11. National Transmission Corporation
12. Metering Service Providers, duly licensed by the Energy Regulatory Commission (ERC)
13. Other entities which may later be created or otherwise identified relevant for the successful implementation of the GEOP.

Section 4. Definition of Terms

This Circular hereby adopts, by reference, the terms defined in RA No. 9136, RE Act, their respective implementing rules and regulations, the GEOP Rules, as well as other relevant DOE Department Circulars.

Furthermore, the following terms, as used in this Circular, shall be defined as follows:

4.1. “Certificate ofReglstration” or “COR" refers to an official document issued by the DOE to any individual or juridical entity engaged in the development, utilization and commercialization of RE Resources, either for own-use or commercial purposes, awarded an RE Contract, after all the necessary information and requirements have been satisfactorily complied with

4.2. “Contestable Customer” refers to electricity and users who have a choice of a supplier of electricity, as may be determined by the ERC in accordance with the RA No. 9136;

4.3. “End-User" refers to any person or entity requiring the supply and delivery of electricity for its own use. As used in this Circular, an End-User shall refer to any person or entity who chooses RE Resources as sources of energy: Provided, That it has satisfied the eligibility requirements stated under Rule 2. Section 6 of the GEOP Rules;

4.4. “GEOP Supply Contract’ refers to the agreement between an End-User and an RE Supplier for the supply of electricity generated from RE by duly authorized RE Supplier, which shall contain, at the minimum, the following terms and conditions:

   4.4.1. Contract Period;
   4.4.2. Name of Electricity End—User and Location;
   4.4.3. Name of RE Supplier and Source of RE Supply;
   44.4. Guaranteed Demand (in kW or MW) and Energy (in kWh or MWh);
   4.4.5. Contract Price for the supply of electricity;
   4.4.6. Payment Terms;
   4.4.7. Replacement Power Provision;
   4.4.8. Default Provision; and
   4.4.9. Other Charges, if any, segregated and itemized;

4.5. “GEOP Operating Permit” refers to a document issued by the DOE to an entity allowing the supply of electric power to an End-User pursuant to this Circular;

4.6. “Renewable Energy Facility” or “RE Facility refers to any power plant that generates electricity using RE Resources;

4.7. “Replacement Power” refers to the provision in the GEOP Supply Contract, which shall be delivered to the End-User in any or all of the following events:

   4.7.1. Whenever the RE Resource sourced andlor contracted by the RE
          Supplier is not available due to scheduled preventive maintenance
          services; or

   4.7.2. Whenever needed to address the variability of an RE technology used
          to supply electricity to the End-User.

4.8. “RE Registrar” or “RER” refers to the entity designated by the DOE to establish and operate the RE Market pursuant to Section 8 of the RE Act and D02019- 12-0016 (or the ”REM Rules”).