TAGUIG CITY - After a series of public consultations and stakeholders' engagements pursuant to Section 2 of Executive Order (EO) No. 21 issued by President Ferdinand R. Marcos Jr. on 19 April 2023, the Department of Energy (DOE) promulgated on 16 June 2023 Department Circular No. DC2023-06-0020, which provides the policy and administrative framework for the efficient and optimal development of the country's Offshore Wind (OSW) resources applicable to all permitting agencies.

This policy and administrative framework defines the implementing guidelines earlier issued by the DOE through a set of rules and procedures for permitting agencies with respect to the issuance of permits and licenses for OSW projects. Specifically, the framework mandates all permitting agencies to submit a complete list of appropriate permits and clearances, including all requirements, fees, and detailed process flow diagram.

The integration of the processes of permitting agencies into the Energy Virtual One Stop Shop (EVOSS) System shall be a key factor for OSW developers in expediting their work commitments. It will also provide a streamlined, effective, and efficient permitting and consenting activity that will lessen the development cost of OSW resources, ultimately lowering the rates to the electricity consumers.

Likewise, the OSW policy and administrative framework introduces seven (7) priority activities for the efficient roll-out of OSW projects. These include: (i) the establishment of the Philippine Offshore Wind Databank (POWD), which will serve as a data repository of all submitted information and documents on OSW projects; (ii) a review of the existing DOE guidelines on the award of Offshore Wind Energy Service Contract and its subsequent monitoring and evaluation system; (iii) preparation of the smart and green grid plan by the Network Service Provider; (iv) formulation and issuance of foreshore lease regulations for the transmission system; (v) preparation by the Philippine Ports Authority (PPA) of the long-term Port Development Plan; (vi) ensuring the safety and security of all OSW projects; and (vii) institutionalization of Marine Spatial Planning.

The Philippines Offshore Wind Roadmap launched last year showcased the country's potential OSW resources estimated at 178 GW. As of this date, the DOE has awarded 66 OSW Contracts with a total potential capacity of 53.85 GW. ###

Taguig City - The Department of Energy (DOE), through its Energy Utilization Management Bureau, recorded PhP 6.8 billion worth of energy efficiency investments based on the Annual Energy Efficiency and Conservation and Annual Energy Consumption Reports submitted by the Designated Establishments (DEs) for the compliance period of 2021-2022.

DEs refer to private entities in the commercial, industrial, transport, power, agriculture, public works, and other sectors identified by the DOE as energy-intensive industries based on their annual consumption from the previous year. Type 1 DEs have an annual energy consumption of 500,000 kWh to 4,000,000 kWh in the prior year, while Type 2 DEs have an annual energy consumption of more than 4,000,000 kWh for the previous year.

Energy efficiency investments include projects that use energy-efficient technologies and practices, which include new installation, upgrading, or retrofitting specific equipment or devices such as lighting retrofit, automated lighting control system or smart control system, Heating, Ventilation and Air-Conditioning (HVAC) upgrades, boiler replacement, and other similar devices or equipment. The DOE also recorded increased investment in Solar PV, Variable Frequency Drives (VFDs), Cogeneration System, District Cooling System, Pumping System, HVAC System, Compressed Air System, Smart Manufacturing System, and Building Energy Management System.

For Type 1 DEs, an investment of around PhP360 million were recorded while around 6.1 billion were recorded for Type 2 DES.

Meanwhile, a total of 4,782 DEs with an annual energy consumption threshold of more than 100,000 kWh equivalent recorded an investment of around PhP306 million.

I am very pleased that our DEs are moving forward on EEC. These accomplishments bring multiple benefits for the companies such as enhancing the sustainability of the energy system, supporting strategic objectives for economic and social development, promoting environmental goals, and increasing prosperity, Energy Secretary Raphael P.M. Lotilla said.

DEs are mandated to integrate energy management system policy into their business operation based on ISO 50001 or a similar framework. ISO 50001 is an international standard awarded to companies with an effective energy management system. It is geared toward businesses committed to disclosing and reducing their emissions and dedicated to developing a policy to make their operations more energy efficient.

DEs likewise set up programs to develop and design measures that promote energy efficiency, conservation, and sufficiency, including installing renewable energy technologies. They are mandated to conduct an energy audit by engaging a certified energy auditor once every three years and submit energy consumption reports to the DOE.

“Industry has a crucial role to play in our quest towards achieving a low carbon-intensive economy and more importantly, integrating this in their business models,” the Secretary added. ###

Taguig City - Energy Secretary Raphael P.M. Lotilla is pleased with the heightened enthusiasm of local and international investors for unlocking the country’s renewable energy (RE) potential.

Recently, BlueFloat Energy announced its market entry in the Philippines through the acquisition of Wind Energy Service Contracts (WESCs) in four sites to be located in Bataan, Batangas, Cagayan & Ilocos, and Southern Mindoro. With headquarters in Spain, BlueFloat has a total portfolio of offshore wind projects worth 32.4 gigawatts (GW) of planned capacity in ten countries across the globe, including Spain, France, Italy, Scotland, Australia, New Zealand, Taiwan, Colombia, Portugal, and the Philippines. The proposed Philippine projects collectively represent the largest single-county planned initiative of BlueFloat at 7.6 GW

The DOE has also recently received an overwhelming response for the Second Round of the Green Energy Auction (GEA-2) Program with 118 pre-qualified companies that will inject capital for the 11,600 megawatts of RE capacities targeted for addition in the country’s energy mix between 2024 to 2026.

“We are pleased with the positive response from local and foreign investors eyeing our RE potential. We are working on policies that would minimize roadblocks, especially for offshore wind (OSW) installations,” Energy Secretary Raphael P.M. Lotilla said.

“In the coming weeks, the DOE will issue the policy and administrative framework for the optimal development of OSW resources, including speeding up the approvals of necessary permits,” Secretary Lotilla announced. “We are working with the concerned government agencies, local government units, and the transmission concessionaire to implement the directives of President Ferdinand Marcos Jr. under Executive Order (EO) No. 21, the Secretary added.

Under EO 21, the DOE is directed to publish the policy and administrative framework for the efficient and optimal development of OSW resources in the country within sixty (60) days from its issuance. The President issued EO 21 on 19 April 2023. It seeks to harmonize and streamline permitting processes and leasing fees under a whole-of-government approach and fully implement the Energy Virtual One-Stop Shop (EVOSS) System to cover all relevant government agencies and bureaus.

Apart from policy enhancements, there are available incentives for RE projects under the 2022 Philippine Strategic Investment Priority Plan (SIPP). In addition, there are also income tax holidays, duty-free importation, and tax exemption of carbon credits provided under Republic Act No. 9513 or the Renewable Energy Act.

Secretary Lotilla added that investments in OSW from foreign companies, such as  that recently announced by BlueFloat, would bring cutting-edge technology with the company’s plan to leverage its floating wind expertise and experience to develop projects along the Philippine coasts and will be working with Filipino partners throughout the construction and operation phase. More importantly, they will work with the various coastal host communities in enhancing the local livelihood opportunities and environmental protection.  

Through the Board of Investments (BOI), the government also recently announced that renewable energy projects had taken center stage, with approximately 80 percent of investment approved this year. ###

TAGUIG CITY – The Department of Energy (DOE) has released the list of qualified bidders for the Second Round of the Green Energy Auction (GEA-2) Program after the evaluation conducted by the Technical Working Group (TWG) of the Green Energy Auction-Bids Evaluation and Awards Committee (GEA-BEAC).

A total of 339 out of 378 submissions of registration for different renewable energy (RE) technologies from 118 companies were found compliant to participate further in the bidding process for the 11,600 MW offered RE capacities.

Qualified bidders are expected to post a bid bond amounting to a minimum of PhP 1 million per megawatt. The Pre-Bid Conference will be conducted on 06 June 2023 to provide an opportunity for the qualified bidders to raise clarifications on this round of RE capacity bidding. A walkthrough of the electronic bidding platform will likewise be conducted during said Conference. 

The auction proper to be held on 19 June 2023 will have three (3) stages corresponding to the annual installation targets – 2024, 2025, and 2026. The installations will be sited across Luzon, Visayas and Mindanao grids. Qualified bidders will be given a forty-five-minute period to place and enter their bids for each RE technology for target year installation.

The winning bidders will be announced by the DOE on 28 June 2023, following the post-evaluation process by the GEA-BEAC and the Green Energy Auction Committee-TWG.

The RE facilities to be set up by the winning bidders will be awarded with 20-year Power Supply Agreements (PSAs) as provided in the Terms of Reference (TOR) of the GEA-2 Program.

The GEA-2 is expected to encourage more investments in power generation as well as to promote the growth of RE as one of the country’s primary sources of energy by facilitating transparent and competitive selection of RE facilities to help realize the government’s target of 35% RE in the energy mix by 2030 and 50% by 2040.

As the GEA will be conducted on a yearly basis, the DOE encourages RE developers that were not able to qualify to participate in the succeeding auction rounds. ###

List of qualified bidders for GEA-2: https://bit.ly/45FtgCe

The Department of Energy (DOE) welcomes the completion of two Liquefied Natural Gas (LNG) facilities in the country.  These facilities enable the importation of LNG into the country to support the continuous fuel supply of our gas-fired power plants.

The first importation of LNG was completed by Linseed Field Corporation and is now supplying natural gas to the Ilijan Natural Gas Power Plant. With the delivery of LNG, Ilijan is now supplying power to the grid beginning yesterday, 01 June 2023 and is expected to improve its contribution to the energy supply in the Luzon grid, especially in the coming months.

The LNG facility constructed by FGEN LNG Corporation (FGEN LNG) is also scheduling its first LNG cargo delivery window in the later part of this year. This will add to and secure the supply of natural gas for its power plants in Batangas. The DOE welcomes the partnership of FGEN and Prime Infrastructure Capital, Inc. (Prime Infra) on the lease and operation of FGEN LNG terminal.

All these developments are positive signals reflecting the continuous interest of the private sector in investing in critical infrastructures that will allow the country to import and utilize imported LNG and complement the available gas from the Malampaya reservoir to meet the country's growing energy demand.

Further, the entry of LNG as a new type of fuel into the energy mix increases diversity and security of our energy needs. It likewise provides the country with fuel and technology that allows flexibility in supporting the various grid demands from baseload to providing reliable mid-merit to peaking power supply.  This flexibility also enables our push to further develop intermittent renewable energy technologies such as solar and wind. ###