Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 233
Offshore Wind Worldwide 2023
(c) failure to notify the REMB by using the
fastest and efficient means of communication the occurrence of any incident/
accident specified time, among others.
The employer is required to formulate and
implement a Safety and Health Program
which shall be in consonance with the
provisions of Republic Act No. 11058 (An Act
Strengthening Compliance With Occupational Safety And Health Standards And
Providing Penalties For Violations Thereof
). 52 Further, the employer shall prepare and
allocate a budget to implement the Safety
and Health Program. The Safety and Health
Program shall include, among others, provisions on general safety, hazardous materials
handling, storage and disposal, compressed
gas handling and storage, facility improvement works, machine guarding, and biological safety. Under the current regulations, the
RE developer is required to submit a Health,
Environment, and Safety Plan and Job Hazard Analysis before the commencement of
any physical works, which will be examined
by both the DOE and the local authority
having jurisdiction of the proposed development site.
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4. OFFTAKE / PPA
4.1 Offtake, remuneration
and tariff scheme
The regulatory regime and revenue framework is largely standardized across different
types of RE. 53 Hence the following discussion
shall be based on the current framework
and options available to existing RE developers. Existing RE developers aim to engage
in long-term offtake agreements to ensure
revenue certainty. 54 Unlike in Vietnam and
China, there is no national or centralized offtaker in the Philippines. The major offtakers
that are recognized in the Philippines are the
distribution utilities (DUs) and contestable
customers (i.e., commercial end-users who
are qualified to negotiate their electricity
supply from a registered retail electricity
supplier).
The RE Act introduced several mechanisms
aimed at incentivizing and stimulating the
entry of RE developers into the market.
These mechanisms are the Feed-in-Tariff
program (FiT), the Renewable Portfolio
Standards (RPS), and the Green Energy
Option Program (GEOP). The FiT program
offered guaranteed payments applicable
for 20 years on a fixed rate per kWh basis,
excluding any generation for own use. The
RPS is a market-based policy that requires
mandated participants to source a specified
portion of their energy supply from eligible
RE plants. Those mandated are all the DUs
52 An Act Strengthening Compliance With Occupational Safety And Health Standards And Providing Penalties For Violations Thereof, Republic Act No.
11058.
53 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, 2022).
54 Id.
