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DOE Prescribes the Framework and Guidelines for the Processing of Applications for Certificate of Energy Projects of National Significance

On 1 April 2024, the Department of Energy (“DOE”) issued Department Order (“D.O.”) No. 2024-04-0003 providing for the revised framework and guidelines for the processing of applications for Certificate of Energy Projects of National Significance (“CEPNS”). 

The CEPNS is issued to energy projects found to have a significant impact on the country’s energy sufficiency, security, reliability and stability, economic development, technological progress, and environmental protection. The purpose of the CEPNS is to facilitate and fast-track the issuance of permits and clearances required by different concerned government agencies and instrumentalities. Certified Energy Projects of National Significance (“EPNS”) shall be given priority and expedited process by permitting agencies and authorities and shall be governed by the timelines prescribed under the Energy Virtual One-Stop Shop (“EVOSS”) Act, other existing laws and where applicable, Executive Order No. 30 (“EO 30”) or the order Creating the Energy Investment Coordinating Council to Streamline the Regulatory Procedures Affecting Energy Projects.

Scope and Coverage of EPNS

Under Section 2 of the D.O., the major energy projects that may be identified and certified as EPNS shall be those found under the Philippine Energy Plan (“PEP”) or those that are consistent with the policy and goals specified therein for the following:

  1. Upstream and downstream sectors – exploration, development, production, utilization, commercialization, and application of energy resources, either conventional or non-conventional, including associated facilities and processes;
  2. Power sector – power generation, transmission, distribution, and ancillary services;
  3. Electric vehicles and alternative energy sources – development and promotion of electric vehicles, alternative energy sources, and technologies and their application; or
  4. All other energy projects, programs, and endeavors identified by the DOE.

A project must have the following attributes to be certified as EPNS:

  1. Significant capital investment – must be at least PHP 3.5 billion.
  2. Significant contribution to the country’s economic development – pertains to the potential of the project to promote greater access to energy and energy supply security of the country.
  3. Significant consequential economic impact – pertains to the potential of the project to generate employment and increased revenue for the government.
  4. Significant potential contribution to the country’s balance of payment – pertains to the inflow of foreign investment capital.
  5. Significant impact on the environment – pertains to the project’s sustainability with minimal adverse environmental effects.
  6. Significant complex technical processes and/or engineering designs – pertains to whether the project involves newly-developed or pioneering energy systems and/or technologies.
  7. Significant infrastructure requirement – pertains to the project’s associated infrastructure. 

Meanwhile, the following energy projects are automatically qualified for CEPNS, subject to their submission of a CEPNS application:

  1. Renewable Energy generation projects that are either:
    1. Eligible under the Feed-In Tariff system;
    2. Declared as winning bids in the Green Energy Auction Program; or
    3. Selected according to other policies and programs of the DOE.
  2. Supports the Energy Transition Goals, as provided in the PEP or other plans, programs, and policies of the DOE.

Rights under the CEPNS

CEPNS holder shall be entitled to the following rights:

  1. Expedited Timeline – The project shall be entitled to a processing time under the periods prescribed by the EVOSS Act or EO 30, as applicable, upon submission of the complete documentary requirements to relevant agencies and entities.
  2. Prioritized and Simultaneous Processing of Permits and Other Requirements – The project shall be entitled to be processed expeditiously, without awaiting the action of other government agencies involved in the processing.
  3. Presumption of Issuance – The CEPNS holder applying for a permit with a government agency shall be presumed to have been issued all relevant permits from other government agencies. This extends only insofar as the permitting process with the said government agency is concerned.
  4. Right to an Explained Denial – If there is any defect or place in the substance and form of the documents submitted by the CEPNS holder, it shall be notified and be given time to rectify the same. If its application is denied, the CEPNS holder shall be entitled to a written explanation from the government agency which should contain the reasons or grounds for the denial.
  5. Inclusion of Associated Facilities – The rights under a CEPNS shall extend to the associated infrastructure of the CEPNS.
  6. DOE Endorsement – The CEPNS shall be equivalent to the endorsement of the DOE for the permitting by government agencies of energy projects.

CEPNS applications must be submitted to the DOE Investment Promotion Office. Approved CEPNS shall be valid until the Commercial Operations Date of the energy project as reflected in their CEPNS.