Philippines Solar PV (large)
In 2008, the Renewable Energy Act (Republic Act 9513) was passed in the Philippines, laying the groundwork for the net-metering scheme (NM Scheme), as well as for other financial incentives and supporting mechanisms, e.g., feed-in tariff (FIT), renewable energy portfolio standard, (RPS) etc. to promote RE development in the Philippines. The Energy Regulatory Commission (ERC) was tasked by the RE Act to create an interconnection standard, pricing methodology, and implementation rules for the NM scheme. In 2013, the ERC adopted the resolution to approve the rules for the net-metering scheme (ERC Resolution no. 9, series of 2013), paving the way for electricity consumers to become electricity producers under the net-metering scheme.
In the Philippines, there are three possible business model for large solar PV project development according to the Renewable Energy Act of 2008 (Republic Act 9513) :
- Projects availing the Feed-in Tariff (FIT) (hereinafter referred to as “FIT Scheme”) according to Section 7 of the RE Act
- Power supply agreements with distribution utility (DU) in on-grid areas (hereinafter referred to as “PSA Scheme”) according to Section 6 of the RE Act
- Power supply agreements with commercial bulk consumers (hereinafter referred to as “B2B Scheme”) according to Section 31e of the Electricity Power Industry Reform Act (EPIRA)
- Net-metering with DU (hereinafter referred to as “NM Scheme”) according to Section 10 of the RE Act
Site Selection / Evaluation
Corporate Fiscal / Legal
Grid Connection Permit
Procurement and Construction
Grid Connection and Commissioning
Power Purchase Agreement
Power Purchase Agreement
Electricity Production License
Operation and Maintenance
The process for the development of on-grid SPV projects of the FIT, PSA, or B2B type is divided into five phases. They are: (1) project preparation, (2) pre-development, (3) development, (4) registration and connection, and (5) operation. The interfaces between these phases are marked by three major milestones of project development. The last phase, operation, was added to cover the entire project development cycle.
In this stage, the RE developer determines a suitable location for RE project development (SSL; Site Selection). The necessary collection of data / information must be done, along with desk studies and site surveys. A feasibility study (F/S) must also be prepared.
Permission to develop a RE project in the Philippines is given by the so-called “blocking system”. RE developer must apply for a RE service contract (RESC) at the Department of Energy (DOE). This is to avail necessary supporting mechanisms (SPM; Support Mechanisms) for their RE project.
The RE developer may form a company to conduct the project development (CFL; Corporate Fiscal / Legal). This must be done early on as the documents regarding the company’s establishment are required in an application of several permits / licenses.
Numerous permits or licenses must be obtained from various authorities (ADM; Administrative Authorization) e.g. the Department of Environment and Natural Resources (DENR), the Department of Agrarian Reform (DAR), the National Commission on Indigenous People (NCIP), the Department of Energy (DOE), and local governments unit (LGU) etc.
Financial support must be secured and mobilised from local bank(s) (FIN; Financing). A financial closure must be reached in order to commence physical construction and equipment procurement.
The RE developer must also approach power utilities to obtain necessary licenses and agreement to connect and use their networks (GCP; Grid Connection Permit)
After the financial closure, equipment procurement and physical construction of the solar PV power plant can begin (PCN: Procurement and Construction).
When the progress of the power plant’s construction reaches 80%, a final inspection can take place (GCC; Grid Connection and Commissioning)
Registration and Connection
Several permits / certifications must be obtained from authorities before the power plant can begin its commercial operation. In the case of an RE project under a feed-in tariff scheme (FIT), a certificate of FIT endorsement (COE) must be obtained from DOE. In instances of an RE project under a power supply agreement (PSA), ERC approval is required (PPA; Power Purchase Agreement)
The RE developer must obtain a certificate of compliance (COC) from the Energy Regulatory Commission (ERC) in order for the power plant to generate electricity (EPL; Electricity Production License)
To ensure a long life for the solar PV power plant, appropriate operation and preventive maintenance measures must be planned and implemented. (OPM; Operation and Maintenance). However, due to a lack of reference projects at the time of publication, this part is not included in this edition of the guideline.