Revised QTP Guidelines
In order to facilitate and streamline the process for entry of QTPs, the DOE issued the Revised Guidelines for Qualified Third Party or “Revised QTP Guidelines”[1] issued by the DOE on November 22, 2019 to encourage private sector participation. As stated in the Revised QTP Guidelines, the participation as a QTP shall be open to any party, including but not limited to private firms, local government units, cooperatives, non-government organizations, generation companies or their subsidiaries or subsidiaries of DUs who have demonstrated the capability and willingness to comply with the relevant technical, financial, and other requirements. This will be done through a competitive bidding. However, a DU or its subsidiary is not qualified to participate as a QTP for the areas it has waived. All QTPs are mandated to adopt the least-cost and most efficient technology options in serving QTP service areas.[2]
PV Mainstreaming
To further contribute to the policy of the State to promote the sustainable development in rural areas through rural electrification, there is recognition that Solar Home Systems (SHS) can be used to provide least-cost and quality service to areas which are unviable for a conventional distribution system.[3] To accelerate household electrification in off-grid and isolated areas through the use of SHS, there is a need to establish a benchmark tariff for SHS electricity service.[4] Hence the promulgation of Resolution No. 17, series of 2017 or the Rules Governing the Setting of Regulated Solar Home System Tariff for the Provision of Electricity Service for Rural Electrification by Electric Cooperatives on July 17, 2017 by the ERC.
Republic Act No. 11357
On July 31, 2019, Republic Act No. 11357 or the Solar Para Sa Bayan Corporation (SPSB) Franchise was passed into law. It grants SPSB a non-exclusive franchise to construct, install, establish, operate, and maintain distributed energy resources (DERs) and microgrids in remote and unviable, or unserved or underserved areas in selected provinces of the Philippines to improve access to sustainable energy.[5]
The law allows SPSB to operate in the following areas:
- In the barangays, municipalities, and cities of the following provinces: Aklan, Aurora, Bohol, Cagayan, Camiguin, Capiz, Compostela Valley, Davao Oriental, Guimaras, Isabela, Masbate, Misamis Occidental, Occidental Mindoro, Oriental Mindoro, Palawan, and Tawi-Tawi;
- In the municipalities and cities of Agoncillo, Alitagtag, Balayan, Balete, Bauan, Calaca, Calatagan, Cuenca, Ibaan, Laurel, Lemery, Lian, Lipa, Lobo, Manibi, Malvar, Mataas na Kahoy, Nasugbu, Padre Garcia, Rosario, San Jose, San Juan, San Luis, San Nicolas, Santa Teresita, Taal, Talisay, Tanauan, Taysan, Tingloy, and Tuy in the province of Batangas;
- In the municipalities and cities of Agdangan, Alabat, Atimonan, Buenavista, Burdeos, Calauag, Catanauan, General Luna, General Nakar, Guinayangan, Gumaca, Infanta, Jomalig, Lopez, Macalelon, Mulanay, Padre Burgos, Panukulan, Patnanungan, Perez, Pitogo, Plaridel, Polilio, Quezon, Real, San Andres, San Francisco, San Narciso, Tagkawayan, and Unisan in the province of Quezon.[6]
SPSB is given a term of 25 years for the franchise, from the date of the law’s effectivity, or until 2044, unless sooner cancelled or revoked.[7] The franchise granted to SPSB does not revoke any existing franchise and no waiver of rights from distribution utilities with franchises shall be necessary to operate distributed energy resources or microgrids in remote and unviable, unserved, or underserved areas, as determined by the DOE.[8] In addition, the law dictates that the franchise shall not affect the duty of the DOE to promote competition in the electrification of remote and unviable, unserved, or underserved areas. Furthermore, other QTPs will be able to operate in any remote and unviable, unserved, or underserved areas, as determined by the DOE, even without a similar franchise from Congress.[9]
[1] Department Circular No. 2019-11-0015 [2] (Sec. 2, Department Circular No. 2019-11-0015) [3,4] ERC Resolution No. 17, s. 2017 [5-9] Section 1 REPUBLIC ACT NO. 11357