Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 228
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3. PUBLIC OR
REGULATORY PERMITS
Key permits or authorizations/certifications required to develop an OSW project
in the Philippines may include water rights
permits, endorsements of the RE project
through resolutions from the affected local
government units and certifications or
permits from relevant government agencies
such as DOE (e.g., Certificate of Registration
as RE Developer), Department of Labor and
Employment (DOLE) (e.g., accredited safety
officer permit, DOLE permits for installation
in compliance with occupational safety and
health standards), Department of Environment and Natural Resources (DENR) (e.g.,
Environmental Compliance Certificate or
Certificate of Non-Coverage, Special Use
Agreement in Protected Areas), and National
Commission on Indigenous Peoples (NCIP)
(e.g., Certificate of Non-Overlap or Certification Precondition), among others. For
onshore grid connections, the RE developer
must secure the relevant authorizations
from and enter into the relevant agreements
with the National Grid Corporation of the
Philippines (e.g., Grid Connection Agreement, Transmission Service Agreement,
Metering Service Agreement).
Republic of Korea
As of writing, there is no OSW farm operating in the Philippines yet. OSW developers
are still in the stage of doing pre-feasibility studies to develop wind farms. 24 The
Philippines has to take into consideration
the impact of OSW farms on the natural
environment and local communities, among
others. It must also develop a comprehensive framework of marine spatial planning
that seeks to achieve the right balance and
provides clear direction to project developers and investors. Key in addressing this
consideration is stakeholder engagement
and avoiding protected landscapes and seascapes through marine spatial planning. 25
3.1 RE Contracts
The award of RE Contracts is currently governed by the RE Guidelines, 26 and the RE Act
IRR, both as amended by the DOE Amendment. In practice, the right to the exploration, development, and utilization of natural
resources (which, prior to the DOE Amendment, included RE resources) is awarded by
the State through RE Contracts. 27 The Draft
Omnibus Guidelines include a template for
OSW Energy Service Contract (template
OSWESC) will be that awarded to RE developers. The template OSWESC is substantially
similar to currently awarded Wind Energy
Service Contracts (WESC), which are based
24 Philippines to build first offshore wind farm: What lessons can it learn from Asian neighbours? At https://www.eco-business.com/news/philippines-tobuild-first-offshore-wind-farm-what-lessons-can-it-learn-from-asian-neighbours/ (last accessed February 28, 2023).
25 See World Bank Group, Offshore Wind Roadmap for the Philippines, available at https://www.doe.gov.ph/sites/default/files/pdf/announcements/
Philippine-Offshore-Wind-Roadmap.pdf?withshield=1 (last accessed February 28, 2023).
26 The RE Guidelines are entitled the Omnibus Guidelines Governing the Award and Administration of Renewable Energy Contracts and the Registration
of Renewable Energy.
27 Given that the DOJ Opinion had already carved out RE resources from the term "natural resources" as used in Article XII, Section 2 of the 1987 Constitution, one may query the need to obtain a service contract from the DOE. To recall, Article XII, Section 2 of the 1987 Constitution provides that "natural
resources are owned by the State [and] [t]he exploration, development, and utilization of natural resources shall be under the full control and supervision
of the State." By removing RE resources from the coverage of the term "natural resources," an argument may be made that an RE Contract, awarded by the
State, is no longer necessary to enable the exploration, development, and utilization of such RE resources. Such RE Contract, however, may still be necessary to entitle its holder to the applicable incentives under the RE Act and the RE Act IRR.
