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Document No: 0433736 Department Order No. 2024-04-0003: Prescribing the

Date Received/ April 03, 2024 Framework and Guidelines for the Processing of
Forwarded Application for Certificate of Energy Projects of National
' il
Significance (CEPNS).
'»!
From/To: Chavez, Edmark
Position:
Office:

From Instructions/Remarks
 Republic of the Philippines
DEPARTMENT OF ENERGY
(Kagawaran ng Enerhiya)
BAOOMG PIUPIMAS

DEPARTMENT ORDER NO. po

PRESCRIBING THE FRAMEWORK AND GUIDELINES FOR THE PROCESSING OF

APPLICATIONS FOR CERTIFICATE OF ENERGY PROJECTS OF NATIONAL
SIGNIFICANCE (CEPNS)

WHEREAS, Republic Act (RA) No. 7638, otherwise known as the Department of Energy Act
(DOE) Act of 1992, declares it as the policy of the State to ensure a continuous, adequate,
and economic supply of energy with the end in view of ultimately achieving self-reliance in
the country’s energy requirements through the integrated and intensive exploration,
production, management, and development of the country’s indigenous energy resources,
and through the judicious conservation, renewal and efficient utilization of energy to keep
pace with the country’s growth and economic development and taking into consideration the
active participation of the private sector in the various areas of energy resource
development: and to rationalize, integrate, and coordinate the various programs of the
Government towards self-sufficiency and enhanced productivity in power and energy without
sacrificing ecological concerns;

WHEREAS, RA 9136, otherwise known as the Electric Power Industry Reform Act of 2001
or EPIRA, mandates the DOE to formulate policies for the planning and implementation of
a comprehensive program for the efficient supply and economical use of energy consistent
with the approved national economic plan and with the policies on environmental protection
and conservation and maintenance of ecological balance, and provide a mechanism for the
integration, rationalization, and coordination of the various energy programs of the
Government; following the restructuring of the electricity sector, to encourage private sector
investments in the electricity sector and promote development of indigenous and renewable
energy sources; in consultation with other government agencies, promote a system of
incentives to encourage industry participants, including new generating companies and end-
users to provide adequate and reliable electric supply; and to exercise supervision and
control over all government activities relative to energy projects to attain the goals embodied
in RA 7638;

WHEREAS, RA 9513, otherwise known as the Renewable Energy (RE) Act of 2008,
declares the policy of the State, among others, to accelerate the exploration and
development of RE resources to achieve energy self-reliance, through the adoption of
sustainable energy development strategies to reduce the country's dependence on fossil
fuels and thereby minimize the country's exposure to price fluctuations in the international
markets, the effects of which spiral down to almost all sectors of the economy; and establish
the necessary infrastructure and mechanism to carry out the mandates specified in RA9513
and other existing laws;

WHEREAS, RA8479, otherwise known as the Downstream Oil Industry Deregulation Act of
1998, provides that the State shall promote and encourage the entry of new participants in
the downstream oil industry, and introduce adequate measures to ensure the attainment of
these goals;

Energy Center, Rizal Drive cor. 34th Street, Bonifacio Global City, Taguig City, Philippines 1632
Tel. No. (Trunkline) (632) 8479-2900
Website: http://www.doe.gov.ph: E-mail: [email protected]
 DO on Prescribing the Framework and Guideiines for the Processing of Applications for CEPNS
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Department Circular (DC) No. DC2024-01-0007, otherwise known as “Adopting
the Amended Rules and Regulations Governing the Philippine Downstream Natural Gas
(DNG) Industry’, provides for the revised regulatory framework for the downstream natural
gas industry, wherein it is a policy of the State to ensure the compliance of DNG industry
product facility standards and best practices on Health, Safety, Security, and Environment
(HSSE), and other applicable rules and regulations under a system of safe, secure, high
quality, environmentally responsible operations and services that afford protection to
consumers and industry stakeholders. The Circular also provides, among others, the
requirements for the issuance of permits to operators for the siting, construction, operation
and maintenance, modification, expansion, rehabilitation, decommissioning and
abandonment of DNG facilities;

WHEREAS, Presidential Decree (PD) No. 87, otherwise known as the Oil Exploration and
Development Act of 1972, declares it as a policy of the State to hasten the discovery and
production of indigenous petroleum through the utilization of government and/or private
resources, local and foreign, under the arrangements embodied in therein which are
calculated to yield the maximum benefit to the Filipino people and the revenues to the
Philippine Government for use in furtherance of national economic development, and to
assure just returns to participating private enterprises, particularly those that will provide the
necessary services, financing and technology and fully assume all exploration risks.

WHEREAS, Pp 972, otherwise known as the Coal Development Act of 1976, provides that,
to develop, achieve and implement a well-planned, systematic and meaningful exploration,
development, exploitation and production of local coal resources, participation of the private
sector with sufficient capital, technical and managerial resources must be encouraged and
the technical and financial capabilities of the coal industry upgraded;

WHEREAS, RA11697, otherwise known as the Electric Vehicle Industry Development Act,
provides for the policy of the State to provide an enabling environment for the development
of electric vehicles; promote and support innovation in clean, sustainable, and efficient
eriergy to accelerate social progress and human development by encouraging public and
private use of low emission and other alternative energy technologies; promote inclusive
and sustainable industrialization while recognizing the role of the private sector in order to
support the transition to new technologies, generate jobs, spur small and medium enterprise
growth, attract investments, grow globally competitive and innovative industries, and
upgrade the country's participation in regional and global value chains, consistent with the
Philippine Development Plan and the country's international obligations under the United
Nations Sustainable Development Agenda;

WHEREAS, Executive Order (EO) No. 30, series of 2017, titled “Creating the Energy
Investment Coordinating Council (EICC) in Order to Streamline the Regulatory Procedures
Affecting Energy Projects," was issued on 28 June 2017;

WHER^S, on 17 October 2017, the DOE issued Department Order (DO) No. D02017-10-
0012, titled “Designation of DOE Representatives to the [EICC] As Provided in EO No. 30
Series of 2017, Otherwise Known as ‘Creating the EICC in Order to Streamline the
Regulatory Procedures Affecting Energy Projects,"'-, on 25 April 2018, DC No. DC2018-04-
0013, or the “Implementing Rules and Regulations ofjEOjNo. 30, Series of 2017, Creating
the [EICC] In Order to Streamline the Regulatory Procedures Affecting Energy Projects,"-,
and, on 25 April 2018, DO No. DO2018-04-0008, otherwise known as “Operationalizing the
Procedures for the Effective and Efficient Implementation of [EO] No. 30, Series of 2017,
 DO on Prescribing the Framework and Guidelines for the Processing of Applications for CEPNS
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Creating the [EICC] In Order to Streamline the Regulatory Procedures Affecting Energy
Projects”-, y yy

WHEREAS, the EICC, under EO 30, is envisioned to spearhead and coordinate national
government efforts to harmonize, integrate and streamline regulatory processes,
requirements and forms relevant to the development of energy investments in the country,
primarily with regard to Energy Projects of National Significance (EPNS), to uphold
transparency and accountability among concerned agencies;

WHEREAS, RA 11234, otherwise known as the Energy Virtual One-Stop Shop (EVOSS)
Act, which was signed into law on 8 March 2019, declares it as State policy to recognize the
indispensable role of the private sector in power generation, transmission, and distribution
by attracting new power generation, transmission, or distribution projects through an
improved ease of doing business index, and reducing high transaction costs associated with
copious requisites for proponents; ensure transparency and accountability in the process of
approving power generation, transmission, or distribution projects, and deliver efficient and
effective service to the public by ensuring timely completion of power generation,
transmission, or distribution projects by eliminating duplication, redundancy, and overlapping
mandates in documentary submissions and processes by supplying an online platform for
government agencies to coordinate and share information;

WHEREAS, the implementation of EO 30 from 2017 to 2020 resulted in the granting of

Certificate of EPNS (CEPNS) to 149 energy projects with a total estimated investment cost
of PhP795 Billion, of which 133 are in the commerciality stage while 16 are in the pre­
development stage. Based on the monitoring reports submitted by EPNS proponents, 52
out of the 133 projects in the commerciality stage have secured all their permits, while 4 out
of the 16 pre-development projects have completed all their permits. All others are in varying
stages of permit applications, with 40 EPNS (3 in pre-development and 37 in the
commerciality stage) reporting no permits granted. Out of the 149 EPNS, 57 are
transmission projects that are in the commerciality stage;

WHEREAS, as contained in its 10 December 2020 Advisory, the DOE suspended the
issuance of the CEPNS to allow the evaluation of the CEPNS effectiveness in terms of
securing regulatory permits, licenses, endorsements, and other requirements relevant to the
timely development and completion of EPNS;

WHEREAS, the EVOSS System has currently integrated 51 regulatory processes relative
to power generation, transmission, or distribution projects. There are 71 processes for
incorporation and 36 processes for integration of their systems into the EVOSS System;

WHEREAS, since EO 30 remains in full force and effect and the EVOSS System is still
undergoing full integration and enrollment of necessary permitting processes in energy
projects, the EPNS process application will be an effective avenue for the fast-tracking of
energy projects to achieve the objectives of the Philippine Energy Plan (PEP) to ensure the
quality, reliability, affordability and adequacy of supply of electric power in the country until
full transition to the EVOSS;

WHEREAS, on 31 October 2023, the DOE issued an Advisory, with respect to the renewed
issuance of the CEPNS, in addition to current mechanisms and platforms under existing
laws, rules and regulations to further streamline the processing of permitting and licensing
of energy projects and thereby ensure their timely implementation;
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Section 23 of RA 7638 states that, upon the request of the DOE or any of its
bureaus, all government agencies with functions relative to the approval of the projects of
the DOE or its duly authorized and endorsed entities, whether government or private, shall
act upon and resolve the matter within the time frames provided by applicable laws;

NOW, THEREFORE, for and in consideration of the foregoing premises, the DOE hereby
redefines, revises and redesigns the CEPNS framework and procedures, as follows:

Section 1. General Principles. - The processing and issuance of the CEPNS shall be
governed by the following principles:

a. The CEPNS shall be issued to energy projects that are found to have significant
impact on the country’s energy sufficiency, security, reliability and stability, economic
development, technological progress, and environmental protection;

b. The CEPNS shall be issued by the DOE to facilitate and fast-track the issuance of
permits and clearances as requirements from the different concerned government
agencies and instrumentalities for energy projects;

c. Certified EPNS shall be given priority and expedited process by the permitting
agencies and authorities, including Government-Owned or Controlled Corporations
(GOCCs), Local Government Units (LGUs), and other entities involved therein,
pursuant to EO 30; and

d. The permitting processes of EPNS shall be governed by the timelines prescribed

under the EVOSS Act, other existing laws, and, where applicable, EO 30.

Section 2. Scope and Coverage of EPNS. — The major energy projects which may be
identified and certified as EPNS by the DOE shall be those found under the PEP or which
are consistent with the policy thrusts and goals specified therein for:

a. Exploration, development, production, utilization, commercialization and application

of energy resources, either conventional or non-conventional, in the upstream and
dov/nstream sectors, including their associated facilities and processes. For the
avoidance of doubt “associated facilities” shall refer to any or all equipment, facilities,
infrastructure and other fixtures that are attached to, connected with, or are integral
to the energy project;

b. Power generation, transmission, distribution, and ancillary services, particularly those

required to maintain grid stability and security and will support distribution load growth
and the energy transition goals;

c. Development and promotion of electric vehicles, alternative energy sources, and

technologies and their application; or

d. All other energy projects, programs and endeavors identified by the DOE.

Section 3. Attributes to be Certified as an EPNS. - In addition to Section 2, the DOE shall

certify an energy project as EPNS where such project has the following attributes:

a. Significant capital investment of at least PhP3.5 Billion;

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b. Significant contribution to the country’s economic development: Provided, That this

pertains to the potential of the project to promote greater access to energy and energy
supply security of the country;

c. Significant consequential economic impact, which pertains to the potential of the

project to generate Jobs, employment, and increased revenue for the government,
among others;

d. Significant potential contribution to the country's balance of payment, wherein the

project can contribute to the inflow of foreign investment capital;

e. Significant impact to the environment such that the project has potential to contribute
to sustainability with minimal adverse effects to the environment:

f. Significant complex technical processes and/or engineering designs, wherein the

project involves newly developed or pioneering energy systems and/or technologies;
or

g. Significant infrastructure requirement, where the associated infrastructure is

necessary for the delivery of energy services and/or supply, such as, but not limited
to, transmission and distribution networks, and other related capital expenditures.

It is the responsibility of the CEPNS applicant to ensure the submission of all necessary
supporting documents to meet the foregoing attributes.

Section 4. Automatic Qualification to CEPNS. - Subject to the submission of the CEPNS

application, the following energy projects are automatically qualified for CEPNS:

a. Renewable Energy generation projects that are eligible under the Feed-In Tariff (FIT)
system, have been declared as winning bids in the Green Energy Auction Program
(GEAP), or have been selected pursuant to other policies and programs of the DOE;
or

b. Supports the Energy Transition Goals, as provided in the PEP or other plans,
programs and policies of the DOE.

Section 5. Rights under the CEPNS.

a. Expedited Timeiine. The CEPNS entitles the project to a processing time pursuant to
the periods prescribed by the EVOSS Act or EO 30, as applicable, upon submission
of the complete documentary requirements to the relevant agencies and entities in
the permitting process of energy projects.

b. Prioritized and Simultaneous Processing of Permits and Other Requirements. The

CEPNS entitles the project to be processed expeditiously, without awaiting the action
of other government agencies involved in the processing if such other agencies’
action is a precondition or a requirement for processing.

c. Presumption of issuance. A government agency shall act on the presumption that a

holder of the CEPNS, applying for a permit with the said government agency, has
DO on Prescribing the Framework and Guidelines for the Processing of Applications for CEPNS
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been issued all relevant permits from other government agencies. Such presumption
extends only insofar as the permitting process with the said government agency is
concerned. The CEPNS holder is required to comply, and the relevant government
agencies retain the right to enforce compliance with existing laws, rules and
regulations.

d. Right to an Explained Denial. Upon a determination of any defect or lapses in the

substance and form of submitted documents, a CEPNS holder shall be notified and
given appropriate time to take the necessary measures to rectify the same.

In the denial of any application, the government agency shall provide the CEPNS
holder a written explanation which shall sufficiently provide the reasons or grounds
thereof.

e. Inclusion of Associated Facilities. The rights under a CEPNS shall extend to the
associated infrastructure of the CEPNS.

f. DOE Endorsement. The CEPNS shall be equivalent to the endorsement of the DOE
for the permitting by government agencies of energy projects.

Section 6. Receipt of Complete Submission and Initial Assessment - All CEPNS

applications shall be submitted to the DOE Investment Promotion Office (IPO).

The applicant shall complete the CEPNS application form, attached herein as Annex “A”,
and shall attach all the necessary documents in support of all the information in the said
form. The CEPNS application form, with supporting documents, shall be submitted with a
cover letter expressing the applicant’s intent to apply for a CEPNS, citing the attribute(s),
and listing all attachments to the application.

Within two (2) working days from receipt thereof, the IPO shall check whether the CEPNS
application form is duly accomplished. This includes whether the CEPNS applicant has
submitted complete documentary requirements in support of its CEPNS application. An
accomplished application form without any supporting documents shall not be processed.

If the IPO determines the application to be complete, the IPO shall refer the CEPNS
application, within the 2-day period, to the appropriate bureau, as detailed in Section 7
herein, for technical evaluation. Othenwise, the IPO shall return the application to the CEPNS
applicant, citing reasons thereof.

Section 7. Technical Evaluation. - The following bureaus, based on the technology and
other technical considerations of the energy project, shall evaluate the attribute(s) claimed
in the CEPNS application in accordance with Section 3 of this Order:

a. Energy Resource Development Bureau (ERDB) for Upstream Conventional Projects,

and exploration and development of new and emerging technologies;

b. Renewable Energy Management Bureau (REMB) for RE projects;

c. Oil Industry Management Bureau (OIMB) for Downstream Conventional Projects.

Applicants for various permits and licenses under DC No. DC2024-01-0007 may apply
for CEPNS;
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d. Electric Power Industry Management Bureau (EPIMB) for Electric Power Projects. These
shall pertain to energy projects for power generation, transmission, and distribution; and

Energy Utilization Management Bureau (EUMB) for electric vehicles, and the distribution
of alternative and/or new and emerging energy sources and technologies.

In the conduct of the evaluation, the said bureaus shall primarily assess whether the
submitted documents are consistent with or are supportive of the attribute(s) used as
justification for the issuance of the CEPNS. The concerned bureau may refer to Annex “B”,
as attached in this Order, for a non-binding guide, subject to the primacy of technical
considerations that it may find appropriate and necessary in the conduct of the evaluation.
In case the submitted documents are insufficient either in form or substance, the technical
bureau shall endorse the denial of the application, citing the insufficiency of the submissions,
without prejudice to the re-application by the CEPNS applicant for the same project.

The concerned bureau may request the assistance of other related technical bureaus, the
Financial Services (FS) and/or Legal Services (LS), depending on the nature of the
application, the attributes claimed and supporting documents. The referred technical bureau
shall still be the unit that shall submit the endorsement.

The concerned technical bureau shall forward its evaluation and recommendation on the
CEPNS application to the IPO, within seven (7) working days from receipt of the referral.
Should LS, FS or other bureaus be consulted or coordinated, the maximum period for
technical evaluation will be ten (10) working days. The timelines herein shall be on a per-
project basis.

Section 8. Issuance of CEPNS. - Within five (5) working days from receipt of the
endorsement by the concerned technical bureau or from receipt of the complete submission
of automatically qualified energy projects under Section 4, the IPO shall commence the
process for the Complete Staff Work (CSW) for the issuance of the CEPNS to be signed by
the Secretary. The IPO shall include in the CSW the technical evaluation of the concerned
bureau. Within two (2) working days from the signing of the CEPNS, the IPO shall issue the
CEPNS to the energy proponent.

In case of denial of the application, the IPO shall prepare the letter of denial to be signed by
the Undersecretary supervising the IPO, citing the reasons or justifications therein.

Section 9. Non-Transferability of the CEPNS. — The CEPNS is not transferable and shall
be exclusive to the energy project applied by the proponent.

Section 10. Amendment of the CEPNS. - The applicant shall submit to the IPO an
application for amendment, with cover letter, justifications and supporting documents. An
incomplete Application Form, or an Application Form with incomplete supporting documents
shall not be processed.

Within two (2) working days from receipt of the request, the IPO shall refer the accomplished
Application Form and its attachments to the concerned technical bureau. The technical
bureau shall evaluate the request for amendment and submit its recommendation within five
(5) working days from receipt of IPO’s referral. Based on such recommendation, the IPO
DO on Prescribing the Framework and Guidelines for the Processing of Applications for CEPNS
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shall process the issuance of the amended CEPNS or the denial of the request pursuant to
the timeline indicated in Section 8 of this Order.

Section 11. Reconsideration ofDeniai. - The CEPNS applicant may file a reconsideration
of the denial of its CEPNS application, within five (5) working days from receipt of such
decision.

The IPO shall refer the request to the technical bureau that handled such application within
one (1) working day from receipt thereof. The concerned technical bureau shall decide on
the request for reconsideration within ten (10) working days from receipt of such request.

In case of denial of the reconsideration, the Undersecretary supervising the IPO shall sign
such decision. Otherwise, the IPO shall commence the CSW for the reversal of the initial
decision and cause the issuance of the CEPNS pursuant to Section 8 of this Order.

The DOE’S decision shall be final and no longer be subject to another reconsideration.

Section 12. Vaiidity Period of the CEPNS. - The CEPNS shall be valid until the
Commercial Operations Date of the energy project, as submitted by the proponent in its
application and reflected in the CEPNS. Upon request by the proponent and subject to the
determination of the DOE, the CEPNS may be extended to enable the energy proponent to
continue to invoke the rights under the CEPNS and to ensure that the applicable attribute(s),
which was the basis of its issuance, will be realized.

Further, the DOE shall post on its website the energy projects that have been issued with a
CEPNS.

Section 13. Authority to Suspend or Revoke the CEPNS. - The CEPNS holder shall fulfill
all the responsibilities and obligations connected with or are necessary to the attribute
attached to the certified energy project or the purpose for which it was certified as EPNS.
Othenwise, the DOE may suspend or revoke the CEPNS, after observance of due process.

Section 14. Transitory Provision. - Applications for CEPNS shall be processed in

accordance with the rule or guidelines prevailing at the time of complete submission to the
DOE.

Within twenty (20) working days from the effectivity of this DO, the DOE, through the Energy
Policy and Planning Bureau, shall notify all CEPNS applicants, with applications pending as
a result of the DOE Advisory dated 10 December 2020, that they may submit their
application under this Order. In the event that no such submission is made, the pending
CEPNS application shall be deemed withdrawn without prejudice to a re-application under
this DO.

Section 15. Adjustments. - The threshold indicated in Section 3 of this Order shall
automatically be adjusted to its present value every five (5) years using the Consumer Price
Index (CPI) as published by the Philippine Statistics Authority (PSA), unless adjusted earlier
by the DOE.

The DOE may, through an Advisory, update the requirements for CEPNS applications,
where necessary and following an evaluation of the implementation of this Order.
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Section 16. Separability Clause. — If any section or provision of this Order is declared
invalid or unconstitutional, such parts not affected shall remain valid and subsisting.

Section 17. Repealing Clause. - All orders, advisories, or other similar issuances, or parts
thereof, which are inconsistent with this Order are hereby revoked, amended, or modified
accordingly.

Section 18. Effectivity. — This Order shall take effect immediately and shall remain in effect
until otherwise modified or revoked.

Issued on APR 0 1 2024 at the DOE, Energy Center, Rizal Drive cor. 34th
Street, Bonifacio Global City, Taguig City, Metro Manila.

RAPHAa P.M. LOTILLA

Secretary
 Annex “A”

Certificate of Energy Projects of National Significance (CEPNS)

Application Form

1 BASIC
1 INFORMATION
Name of Project
Location
Capacity
Project Stage ( ) Development Stage ( ) Commerdality Stage
Target Testing &
Commissioning
Date
Target
Commercial
Operations Date
Company
Contact Person
Contact Number
1 AM KltJUIb(S) FOR CEPNS 1

□ 2. Significant contribution to the country’s economic development

□ 3. Significant consequential economic impact
□ 4. Significant potential contribution to the country's balance of payment
□ 5. Significant impact to the environment,
□ 6. Significant complex technical processes and/or engineering designs
□ 7. Significant infrastructure requirement
□ 8. Automatically Qualification Category: _______________________ _
□ 9. Amendment of the CEPNS on

JUSTIFICATION FOR CEPNS (site relevant

condition/s and explain justification for coverage)
Supporting Documents
Attribute No. Attached
(Write-up) □_______
□_______
□_______
Supporting Documents
Attached
Attribute No. □_______
(Write-up) □_______
□

(Please add pages if there are more attributes indicated)

STATUS OF COMPLIANCE
Project with; Service Operating Systems Certificate of Notice to Others:
(please check Contract Contract Impact Endorsement Proceed
and attach Study
document) ( ) ( ) ( ) ( ) ( ) ( )

Offtake for ( ) Merchant Plant (Please attach WESM Registration)

power plants, ( ) Contract, indicate compliance w/ Competitive Selection Process (Please
Transmission attach Power Supioly Agreement)
or Distribution ( ) Own Use ( ) Not Applicable
Networks and
Gas Projects ) Certificate of Endorsement
(P/s check ) System Impact Study
and attach the ) Engineering Procurement Contract
applicable) ) Certificate of Endorsement
) Proof of Financial Closing
) System Impact Study
) Notice to Proceed
) Undertaking on Feedstock Supply (MOA, MOU, etc.) for Biomass projects
) Proof of FIT Eligibility
( ) Notice of Award under the Green Energy Auction Program

Enumerate deficiencies and planned completion dates (if any):

Describe specific need/s for CEPNS coverage (Cite relevant agency or office. LGU permit,
approval, or action that needs to be addressed)
 ANNEX“B”
REFERENCE FOR EVALUATION OF EPNS ATTRIBUTES

The following serves as a non-binding guide for the technical evaluation of CEPNS
applications. The concerned technical bureau shall evaluate the submissions and other
considerations that support the invoked attribute of the CEPNS applicant.

a. Significant capital investment of at least PhP3.5 Billion, wherein the total amount of
investment of any CEPNS application should be able to finance the construction, at a
minimum equivalent capacity or activity, of any of the following:

I. 13 MW Nuclear Power Plant;

ii. 75 MW Natural Gas Plant;
iii. 75 MW Diesel Power Plant;
iv. 70 MW Bunker C;
V. 13 MW Geothermal Plant;
vi. 20 MW Hydropower (run-of-river) Plant;
vii. 30 MW Biomass Plant;
viii. 70 MW Solar Plant;
ix. 38 MW Wind Plant;
X. 12 MW Waste-to-Energy (WTE) Project (Direct-combustion);
xi. 9 MW WTE Project (Combined Direct-combustion and Anaerobic Digestion);
xii. 0.20 Million Tons per Year (MTPY) of Liquefied Natural Gas (LNG) Terminal (can
fuel 95 MW of Natural Gas at 85.0 percent capacity factor, or 190 MW at 50.0
percent capacity factor);
XIII. 1.70 thousand barrels per day (kbbi) capacity of Oil Refinery; or
xiv. US$64 Million total committed investments for the exploration and/or appraisal
period and/or production phase;

b. Significant contribution to the country’s economic development; Provided, That this

pertains to the potential of the project to promote greater access to energy and energy
supply security of the country.

Aside from promoting greater energy supply security and access to energy, a project
must contribute to wealth creation for the country through the following:

i. ER 1-94 Benefits to Host Communities of at least PhP22 million annually; and/or,

ii. Contribution to National Wealth Tax of at least PhPlOO million annually;

c. Significant consequential economic impact, which pertains to the potential of the project
to generate jobs, employment, and increased revenue for the government, among
others.

A project has the potential to generate jobs quantified by the number of workers
employed, and/or contribution to providing greater access to electricity in off-grid areas
as follows:

i. Contribute to local job generation of at least 150 workers (during operation

including indirect employment) and 1,000 workers during construction;
 II. Potential for Micro-Grid in areas offered for Micro-Grid Service Providers in
unserved and underserved areas, either declared by the DOE or identified by the
distribution utility as such, in support of productive use of electricity:
III. Funded by grants of business communities and bilateral or multilateral financial
institutions; and/or
IV. Investment by LGUs or mandated GOCCs.

Significant potential contribution to the country's balance of payment, wherein the project
can contribute to the inflow of foreign investment capital;

A project must have the potential to contribute to the inflow of foreign investment capital
and reduction in the country’s balance of payments:

I. At least 40% Foreign Investment of total project Investment; and

ii. Contribution to reduction of energy imports.
a. Equivalent avoidance of at least or in excess of 2.0 billion cubic feet of LNG
annually;
b. Equivalent avoidance of at least or in excess of 180,000 barrels of oil
annually;

e. Significant impact to the environment, that is, the project has potential to contribute to
sustainability with minimal adverse effects to the environment;

A project with the potential to contribute to energy infrastructure sustainability and/or

with minimal adverse effects to the environment through;

i. Entry of climate-resilient energy facilities; and,

ii. Contribute to the Greenhouse Gas (GHG) emission reduction/avoidance of at
least 200 thousand tons (Kton) of C02 equivalent;

f. Significant complex technical processes and/or engineering designs, wherein the project
involves newly developed or pioneering energy systems and/or technologies;

A project introducing new and emerging energy technologies and/or pioneering energy
systems as determined by the following:

i. Entry of new and emerging energy technologies with higher efficiency factors than
existing ones:

a. Oil-based at 40.0 percent (existing 25.0 - 40.0 percent):

b. Gas Turbine at 40.0 percent (existing 33.0 percent - 38.0 percent);
c. CCGT at 60.0 percent (existing 33.0 - 50.0 percent); and
d. Biomass 40.0 percent (existing 87.0 - 91.0 percent).

ii. Pioneering Projects; or

g. Significant infrastructure requirement, when the associated Infrastructure necessary for

the delivery of energy services and/or supply, such as, but not limited to, transmission
and distribution networks.
A project with associated infrastructure necessary for the delivery of energy services and
supply, which can be realized through the following:

With associated infrastructure, such as alternative transmission corridors and

pipeline;
I. Government Priority Projects which relate to the delivery of energy services and/or
supply: and
il. Project completion by the end of the year as required by the energy systems.