FEED IN

TARIFF (FIT)

By: Patrick John S. Bacongon

Jhon Maverick Castillo
REPUBLIC ACT NO. 9513
AN ACT PROMOTING THE DEVELOPMENT,
UTILIZATION AND COMMERCIALIZATION OF
RENEWABLE ENERGY RESOURCES AND FOR
OTHER PURPOSES

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 CHAPTER I
TITLE AND DECLARATION
POLICIES

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SECTION 1. SHORT TITLE - Also know as the “Renewable Energy Act of 2008”

SECTION 2. DECLARATION OF POLICIES

SECTION 3. SCOPE- This Act shall establish the framework for the accelerated
development and advancement of renewable energy resources, and the development of a
strategic program to increase its utilization.

SECTION 4. DEFINITION OF TERMS

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CHAPTER II
ORGANIZATION

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SECTION 5. LEAD AGENCY- The DOE
shall be the lead agency mandated to
implement the provisions of this Act.

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CHAPTER III
ON-GRID RENEWABLE
ENERGY DEVELOPMENT

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SECTION 6. RENEWABLE PORTFOLIO STANDARD(RPS)
• All stakeholders in the electric power industry shall contribute to the growth
of the renewable energy industry of the country. Towards this end, the
National Renewable Energy Board (NREB), created under Section 27 of this
Act, shall set the minimum percentage of generation from eligible renewable
energy resources and determine to which sector RPS shall be imposed on a per
grid basis within one (1) year from the effectivity of this Act.

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Section 7. Feed-In Tariff System.- To accelerate the development of emerging renewable
energy resources, a feed-in tariff system for electricity produced from wind, solar,
ocean, run-of-river hydropower and biomass is hereby mandated. Towards this end, the
ERC in consultation with the National Renewable Energy Board (NREB) created under
Section 27 of this Act shall formulate and promulgate feed-in tariff system rules within
one (1) year upon the effectivity of this Act which shall include, but not limited to the
following:

• Priority connection to the grid.

• Priority purchase and transmission of, and payment for such
electricity by the grid operators
• Fixed tariff by technology
• mandated number of years not less than 12 years
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Section 8. Renewable Energy Market (REM). - To facilitate compliance with Section 6
of this Act, the DOE shall establish the REM and shall direct PEMC to implement
changes to the WESM Rules in order to incorporate the rules specific to the operation of
the REM under the WESM. The PEMC shall, under the supervision of the DOE,
establish a Renewable Energy Registrar within one (1) year from the effectivity of this
Act and shall issue, keep and verify RE Certificates corresponding to energy generated
from eligible RE facilities. Such certificates will be used for compliance with the RPS.
For this purpose, a transaction fee, equal to half of what PEMC currently charges regular
WESM players, may be imposed by PEMC.

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Section 9. Green Energy Option. - The DOE shall establish a Green Energy Option
program that provides end-users the option to choose RE resources as their sources of
energy. In consultation with the NREB, the DOE shall promulgate the appropriate
implementing rules and regulations which are necessary, incidental or convenient to
achieve the objectives set forth herein.

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Section 10. Net-metering for Renewable Energy. - Subject to technical considerations
and without discrimination and upon request by distribution end-users, the
distribution utilities shall enter into net-metering agreements with qualified end-users
who will be installing RE system.

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Section 11. Transmission and Distribution System Development. - TRANSCO or its
successors-in-interest or its buyer/concessionaire and all DUs, shall include the
required connection facilities for RE-based power facilities in the Transmission and
Distribution Development Plans: Provided, that such facilities are approved by the
DOE. The connection facilities of RE power plants, including the extension of
transmission and distribution lines, shall be subject only to ancillary services
covering such connections.

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 CHAPTER IV
OFF-GRID RENEWABLE ENERGY
DEVELOPMENT

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Section 12. Off-Grid Areas. - Within one (1) year from the effectivity of this Act,
NPC-SPUG or its successors-in-interest and/or qualified third parties in off-grid
areas shall, in the performance of its mandate to provide missionary
electrification, source a minimum percentage of its total annual generation upon
recommendation of the NREB from available RE resources in the area
concerned, as may be determined by the DOE.

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CHAPTER V
GOVERNMENT SHARE

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Section 13. Government Share. - The government share on existing and new
RE development projects shall be equal to one percent (1%) of the gross
income of RE resource developers resulting from the sale of renewable energy
produced and such other income incidental to and arising from the renewable
energy generation, transmission, and sale of electric power except for
indigenous geothermal energy, which shall be at one and a half percent (1.5%)
of gross income.

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 CHAPTER VI
ENVIRONMENTAL COMPLIANCE

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Section 14. Compliance with Environmental Regulations.
- All RE explorations, development, utilization, and RE systems
operations shall be conducted in accordance with existing environmental
regulations as prescribed by the DENR and/or any other concerned
government agency.

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CHAPTER VII
GENERAL INCENTIVES

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Section 15. Incentives for Renewable Energy Projects and Activities.

Section 16. Environmental Compliance Certificate (ECC).

Section 17. Exemption from the Universal Charge.

Section 18. Payment of Transmission Charges

Section 19. Hybrid and Cogeneration Systems.

Section 20. Intermittent RE Resources.

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 Section 21. Incentives for RE Commercialization.

Section 22. Incentives for Farmers Engaged in the Plantation of Biomass Resources.

Section 23. Tax Rebate for Purchase of RE Components

Section 24. Period of Grant of Fiscal Incentives.

Section 25. Registration of RE Developers and local manufacturers, fabricators and

suppliers of locally-produced renewable energy equipment. .

Section 26. Certification from the Department of Energy

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CHAPTER VIII
GENERAL PROVISIONS

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Section 28. Renewable Energy Trust Fund (RETF). - A Renewable Energy
Trust Fund is hereby established to enhance the development and greater
utilization of renewable energy. It shall be administered by the DOE as a
special account in any of the GFIs. The RETF shall be exclusively used to:

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(a) Finance the research, development, demonstration, and promotion of the
widespread and productive use of RE systems for power and non-power applications;
(b) Support the development and operation of new RE resources to improve their
competitiveness in the market;
(c) Conduct nationwide resource and market assessment studies for the power and non-
power applications of renewable energy systems;
(d) Propagate RE knowledge by accrediting, tapping, training, and providing benefits to
institutions, entities, and organizations which can extend the promotion and
dissemination of RE benefits to the national and local levels; and
(e) Fund such other activities necessary or incidental to the attainment of the objectives
of this Act.

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Section 29. Financial Assistance Program. - Government financial institutions
such as the Development Bank of the Philippines (DBP), Land Bank of the
Philippines (LBP), Phil-Exim Bank and other government financial institutions
shall, in accordance with and to the extent allowed by the enabling provisions of
their respective charters or applicable laws, provide preferential financial
packages for the development, utilization and commercialization of RE projects
as duly recommended and endorsed by the DOE.

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Section 30. Adoption of Waste-To-Energy Technologies. - The DOE shall, where
practicable, encourage the adoption of waste-to-energy facilities such as, but not
limited to, biogas systems. The DOE shall, in coordination with the DENR,
ensure compliance with this provision.

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Section 31. Incentives for RE Host Communities/LGUs. - Eighty percent (80%)
of the share from royalty and/or government share of RE host
communities/LGUs from RE projects and activities shall be used directly to
subsidize the electricity consumption of end users in the RE host
communities/LGUs whose monthly consumption do not exceed one hundred
(100) kwh. The subsidy may be in the form of rebates, refunds and/or any other
forms as may be determined by DOE, DOF and ERC, in coordination with
NREB.

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Section 32. Creation of the Renewable Energy Management Bureau.
- For the purpose of implementing the provisions of this Act, a Renewable Energy
Management Bureau (REMB) under the DOE is hereby established, and the
existing Renewable Energy Management Division of the Energy Utilization
Management Bureau of the DOE, whose plantilla shall form the nucleus of
REMB, is hereby dissolved.

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CHAPTER IX
FINAL PROVISIONS

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Section 33. Implementing Rules and Regulations (IRR). - Within six (6) months
from the effectivity of this Act, the DOE shall, in consultation with the Senate and
House Committees on Energy, relevant government agencies and RE stakeholders,
promulgate the IRR of this Act.

Section 34. Congressional Oversight. - Upon the effectivity of this Act, the Joint
Congressional Power Commission created under Section 62 of Republic Act No.
9136, otherwise known as the "Electric Power Industry Reform Act of 2001"
shall exercise oversight powers over the implementation of this Act.

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Section 35. Prohibited Acts.
The following acts shall be prohibited:
(a) Non-compliance or violation of the RPS rules;
(b) Willful refusal to undertake net metering arrangements with qualified
distribution grid users;
(c) Falsification or tampering of public documents or official records to avail
of the fiscal and non-fiscal incentives provided under this Act;
(d) Failure and willful refusal to issue the single certificate referred to in
Section 26 of this Act; and
(e) Non-compliance with the established guidelines that DOE will adopt for
the implementation of this Act.

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Section 36. Penalty Clause. - Any person who willfully commits any of the
prohibited acts enumerated under this Act, shall be imposed with the penalties
provided herein. Any person, who willfully aids or abets the commission of a
crime prohibited herein or who causes the commission of any such act by another
shall be liable in the same manner as the principal.

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Section 37. Appropriations. - Such sums as may be necessary for the initial
implementation of this Act shall be taken from the current appropriations of the
DOE. Thereafter, the fund necessary to carry out the provisions of this Act shall be
included in the annual General Appropriations Act.

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Section 38. Separability Clause. - If any provision of this Act is held invalid
unconstitutional, the remainder of the Act or the provision not otherwise affected
shall remain valid and subsisting.

Section 39. Repealing Clause. - Any law, presidential decree or issuance, executive
order, letter of instruction, administrative rule or regulation contrary to or
inconsistent with the provisions of this Act is hereby repealed, modified or
amended accordingly.

Section 40. Effectivity Clause. - This Act shall take effect fifteen (15) days
after its publication in at least two (2) newspapers of general circulation

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 FIT-All Application

• Application to be filled by Administrator annually, no later than July

31 of each year.
• FIT-All to be approved by the ERC no later than October 31 of each
year
• FIT-All to be approved by ERC shall be applied to the succeeding
calendar year
• Formula for computing the FIT-All provided in the guidelines

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The FIT to be paid to RE Developers

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The Overall FIT Framework

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ERC- Approved FITs

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DOE Installation Targets

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ERC-Approved Degression Rates

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Section 2.5: FIT Rules

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Fund Flow

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Invoicing and Timeline

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Thank you
for listening