Republic of the Philippines 

DEPARTMENT OF ENERGY 

DEPARTMENT CIRCULAR NO. 2011-07-007

ENSURING THE AND READINESS OF THE TRANSMISSION SYSTEM TO ACCOMODATE NEW GENERATING CAPACITIES FROM EMERGING RENEWABLE ENERGY (RE) 

Section 37 (i) of Republic Act No. 9136 otherwise known as the Electric Power Industry Act of (EPIRA), provides that the Department of Energy (DOE) shall develop policies and procedures, and as appropriate, promote a system of energy development incentives to enable and encourage power industry participants to provide adequate capacity to demand including, among others, reserve requirements; 

WHEREAS, the DOE is mandated to establish the necessary infrastructure and mechanism to carry out the Policy of the State of encouraging the development and utilization of renewable energy resources under Republic Act No. 9513 or the Renewable Energy of 200S (RE Act); 

WHEREAS, on 16 May 2011, the National Energy Board (NREB) filed a petition with the Energy Regulatory Commission (ERC) for Feed-in Tariffs (FiTs) with preliminary targets; 

WHEREAS, the certification of the DOE is needed on the final installation targets for RE resources in order for the to proceed with the FITs petition; 

WHEREAS, the DOE took the preparatory steps of evaluating the preliminary installation targets proposed by NREB to determine, among others, the final installation targets for run-ofriver hydropower, biomass, wind, solar and ocean technologies for the next three (3) years and their reasonableness given the current status of the grid; 

WHEREAS, in determining the final installation targets, the DOE it necessary to ensure the and absorption to the grid of the new RE generating capacities recognized in the final installation targets certified by DOE; 

NOW, the foregoing premises considered and pursuant to its mandate under and'the RE Act, DOE declares as follows: 

Section 1. Scope and Application. Circular shall apply to all agencies and entities named herein and to all electric power industry participants. 

Section 2. Responsibility of the National Grid Corporation of the Philippines (NGCP). Pursuant to its franchise Republic Act No. 9511, and its responsibilities under EPIRA and the RE Act, other rules and NGCP is enjoined to their full cooperation to the DOE in preparation and execution of a national transmission development plan (TDP) that is responsive to promotion and development of the needed generation capacities nationwide to meet the future demand for electricity and to spur competition in the generation and supply sector. With guidance from the the NGCP shall the ensure absorptive capacity of the grid and provision of adequate ancillary services needed by system including among others the attendant requirements (for ancillary services) for RE generating that will come online in the next three (3) years.

Section 3. Regulatory Support. As the agency which issues the decision granting.the approval of the projects under the TDP as filed by the NGCP in an appropriate the ERC is hereby requested to resolutions concerning the same to the timely execution of the line development 

Section 4. Effectivity. Circular shall effect (15) days from its publication in a newspaper of circulation. 

This or July 2011 at Fort Bonifacio, [...] Metro Manila. 

RENE D. ALMENDRAS