Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
NINETEENTH CONGRESS 
Second Regular Session 
House Bill No. 9535 
Introduced by Representative Maria Rachel J. Arenas 
AN ACT CREATING THE PHILIPPINE RENEWABLE ENERGY CORPORATION, 
DEFINING ITS POWERS AND FUNCTIONS, AND APPROPRIATING FUNDS 
THEREFOR 
EXPLANATORY NOTE 
According to Republic Act No. 9513, or the Renewable Energy Act of 2008, it is declared 
the policy of the State to accelerate the exploration development, and utilization of renewable 
energy resources by promoting its efficient and cost-effective application. Furthermore, there is 
a need to reduce the Philipines’ dependence on imported fossil fuels and reduce the jarring 
impact of climate change. With that being said, there is a need for the government to have an 
active role in assuring there is sufficient supply of electricity that is stable, affordable, and 
reliable. 
This bill seeks to accelerate the development of renewable energy resources in order to 
achieve energy self-reliance through the adoption of sustainable energy strategies. In addition, 
this proposed measure aims to minimize the country’s vulnerability to price fluctuations in the 
international energy markets.  
In view of the foregoing, the passage of this bill is earnestly sought. 
    MARIA RACHEL J. ARENAS 
 Representative 
 3rd District of the Province of Pangasinan 
November 14, 2023
11:03 am


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
NINETEENTH CONGRESS 
Second Regular Session 
House Bill No. 9535
Introduced by Representative Maria Rachel J. Arenas 
AN ACT CREATING THE PHILIPPINE RENEWABLE ENERGY CORPORATION, 
DEFINING ITS POWERS AND FUNCTIONS, AND APPROPRIATING FUNDS 
THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
Sec.1.  Short Title. - This Act shall be known as the “Philippine Renewable Energy 
Corporation Charter”. 
Sec.2. Declaration of Policy. – It is hereby declared the policy of the State to accelerate 
the exploration and development of renewable energy resources to achieve energy self-reliance. 
Through the adoption of sustainable energy development strategies, it is the goal to reduce the 
country’s dependence on fossil fuels and thereby minimize the country’s exposure to price 
fluctuations in the international energy markets; the effects of which spiral down to almost all 
sectors of the economy. 
Sec. 3. Renewable Energy (RE) Resources. – The term RE resources shall refer to energy 
resources that do not have an upper limit on the total quantity to be used. Such resources are 
renewable on a regular basis, and whose renewal rate is relatively rapid to consider the availability 
over an indefinite period of time. These include, among others, biomass, solar, wind, geothermal, 
ocean energy, and hydropower, with internationally accepted norms and standards on dams, and 
other emerging RE technologies. 
Sec. 4. Creation, Name, Domicile, and Term. – There is hereby created, under the 
jurisdiction of the Office of the President and in coordination with the Department of Energy 
(DOE), a body corporate to be known as the “Philippine Energy Corporation”, hereinafter referred 
to as the “Corporation”, which shall promote, explore and undertake development, utilization, and 
commercial operation of new, renewable, non-conventional and environmental-friendly energy 
sources and systems. For this purpose, the existing PNOC-Renewables Corporation (PNOC-RC) 


is hereby abolished and its power and functions shall include all renewable energy projects, 
renewable energy investments, applicable funds and appropriations, records, equipment, property, 
and personnel as may be necessary. 
 
The principal office of the Corporation shall be determined by its Board of Directors. It 
may establish offices, subsidiaries, and branches in the Philippines or abroad as its business 
operations may require, subject to the relevant provisions of Republic Act No. 10149, otherwise 
known as the “GOCC Governance Act of 2011” and under the regulatory jurisdiction of the 
Governance Commission. 
 
The Corporation shall exist perpetually unless sooner dissolved by law. 
 
Sec. 5. Purposes. – The Corporation shall promote and undertake research, development, 
utilization, manufacture, sale, marketing, distribution, and commercial application of new, 
renewable, non-conventional, and environmental-friendly energy sources including biomass, 
geothermal, solar, hydro, ocean, wind, and other natural, non-fossil fuel. It shall apply new and 
efficient energy conversion and utilization technologies for commercial application and promote 
efficient utilization. 
 
Sec. 6. Powers and Functions of the Corporation. – The Corporation shall have the 
following powers and functions: 
 
a. To undertake, by itself or otherwise, exploration, exploitation and development 
of all renewable energy resources of the country, including surveys and 
activities relative thereto; 
b. To construct, install, operate and maintain renewable and hybrid energy 
generation facilities in the Small Power Utilities Group (SPUG) aread and other 
unserved and underserved areas in partnership with the electric cooperatives or 
under a contract with the National Power Corporation (NPC); 
c. To enter into a contract with the government or any person or entity, domestic 
or foreign, which shall undertake various aspects of renewable energy resources 
exploitation including the acquisition, purchase, lease or other deferred 
payment arrangements of equipment and raw materials and supplies, as well as 
for services related therewith under such terms and conditions as it may deem 
proper and reasonable; 
d. To borrow money from local and foreign sources as may be necessary for the 
corporation’s operations; 
e. To acquire assets, real or personal, or interests therein, and encumber or 
otherwise dispose the same as it may deem proper and necessary in the conduct 
of the corporation’s business; 
f. To determine its organizational structure and the number and salaries of its 
officers and employees in accordance with the existing government rules and 
regulations; 
g. To establish the right of eminent domain as may be necessary for the purposes 
for which the Corporation is created; 
h. To exercise the right of eminent domain as may be necessary for the purposes 
for which the Corporation is created; 


i. To conduct technical studies on private lands with potential RE resources for 
the exploration, exploitation, and development, subject to the approval of the 
owner and payment of the appropriate amount of compensation; 
j. To set the minimum energy capacity to be the product, subject to the generation 
mix set by the DOE in the Philippine Energy Plan. If in case, the private sector 
participants operating RE generation facilities have utilized all the energy 
capacity they procedure and shall need a power supply from the Corporation, 
the rates offered by the private sector participants should be lower or the same 
as the rates offered by the Corporation; 
k. To acquire easement over public and private lands necessary in carrying out 
any work essential to energy resources exploitation, subject to the payment of 
just compensation; 
l. To adopt a code of By-laws to complement this Charter; 
m. To adopt and use a corporate seal which shall be judicially noticed; and 
n. To exercise and perform such other functions as may be provided by the law 
 
Sec. 7. Permits and Licenses. – The procedure for the issuance of permits and licenses for 
the construction, installation, and operation of RE facilities under the Corporation shall be 
governed by Republic Act No. 11234, otherwise known as the “Energy Virtual One-Stop Shop 
Act” and Republic Act No. 11032, otherwise known as the “Ease of Doing Business”. 
 
Sec. 8. Governing Body. – The Corporation shall be governed by a Board of Directors, 
hereinafter referred to as the “Board”, which shall be composed of seven (7) members, including 
the Ex-officio Chairman and President and Chief Executive Officer (CEO), who shall be appointed 
by the President of the Philippines and serve for a term of three (3) years renewable each year upon 
the discretion of the President of the Philippines or until their successors shall have been appointed 
and qualified. In case of a vacancy in the board, the same shall be filled by the President of the 
Philippines for the unexpired portion of the term in accordance with the Merit and Fitness Rule set 
under the existing government rules and regulations. 
 
 
Those appointed as members of the Board shall come from fields of law, engineering, 
accountancy, finance, or any person who has at least five (5) years of experience as senior officer 
in the renewable energy industry: Provided, That one (1) member shall be an electrical engineer 
with experience in power generation, preferably on renewable energy exploration and development 
and one (1) member shall come from the labor group. 
 
 
The appointed President and Chief Executive Officer (CEO) shall be subject to the 
disciplinary powers of the President of the Republic of the Philippines through the GCG’s rules 
and may be removed by the President for cause. 
  
 
Sec. 9. Duties and Responsibilities of the President and Chief Executive Officer. – The 
President and Chief Executive Officer shall exercise and perform powers and duties as may be 
provided by the By-Laws or as may be vested in them by the Board. 
 
 
Sec. 10. Appointment, Control, and Discipline of Personnel. – Any provision of the law 
to the contrary notwithstanding, the Board shall, upon the recommendation of the President of the 


Corporation, appoint the officers of the Corporation and its subsidiaries such as the Corporate 
Secretary, Compliance Officer, and Internal Auditor; fix the compensation, allowances and 
benefits, working hours and such other conditions of employment as it may deem appropriate; 
grant leaves of absence under such regulations as it may promulgate and discipline or remove for 
casual and establish and maintain a recruitment and merit system for the Corporation and its 
affiliates and subsidiaries, subject to the existing government rules and regulations. 
 
 
Sec. 11. Privileges and Incentives. – The Corporation shall be entitled to all the incentives 
and privileges granted by law to corporations engaged in renewable energy development and 
operation. 
 
 
Sec. 12. Authorized Capital. – The Corporation shall have an authorized capital stock equal 
to: 
a. The value of fixed assets, including plants and equipment and such other properties, 
movable and immovable, currently administered by or belonging to the PNOC-RC, as 
valued on the date of the effectivity of this Act; 
b. The value of such real estate owned or administered by the Agus and Pulangui 
Hydroelectric Power Plant Complexes and other hydroelectric facilities operated and 
maintained by the NPC which shall be transferred to the Corporation pursuant to 
Section 13 of this Act; 
c. The value of such real estate owned or administered by the PNOC-RC, and such real 
estate over which the Agus and Pulangui Hydroelectric facilities are located; and  
d. Government contribution to the Corporation as provided for in the annual General 
Appropriations Act including any outlaw from the infrastructure program of the 
National Government pertaining to the PNOC-RC, the Agus and Pulangui 
Hydroelectric Power Plant Complexes, and other hydroelectric facilities. 
 
Sec. 13. Transfer of Ownership and Assets to the Corporation. – Any provision of the law 
to the contrary, notwithstanding, the Agus Pulangui Hydroelectric Power Plant Complexes and 
other hydroelectric facilities which are operated and maintained by the NPC shall be excluded 
from among the generation assets that will be privatized, pursuant to Republic Act No. 9136, 
otherwise known as the “Electric Power Industry Reform Act (EPIRA) of 2001”.  The ownership 
of the Agus and Pulangui Hydroelectric Power Plant Complexes and other existing hydroelectric 
power plants shall be transferred to and operated by the Corporation. As such, the employees and 
personnel of the hydroelectric power plants shall be retained for the continuous operation of the 
said power plants. The complexes shall be retained to generate power, which shall serve as a buffer 
supply to avert power crises in the Mindanao grid, The Corporation shall prioritize the marketing 
and selling of the generated capacity of the Agus and Pulangui Hydroelectric Power Plants to 
supply the power requirements of residential consumers in Mindanao. 
 
 
Sec. 14. Appropriations. – For the initial funding requirements of the Corporation, the sum 
of seven billion pesos (Php 7,000,000,000.00) shall be included in the general Appropriations Act. 
 
 
Sec. 15. Reports. – The Corporation shall, within three (3) months after the end of every 
fiscal year, submit its annual report to the President and the Congress of the Philippines, through 


the Joint Congressional Energy Commission. It shall likewise submit such periodic or other reports 
as may be required from time to time. 
 
 
Sec. 16. Separability Clause. – If, for any reason, any section or provision of this Act is 
declared unconstitutional or invalid, other sections or provisions which are not affected thereby 
shall continue to be in full force and effect. 
 
 
Sec. 17. Repealing Clause. – All laws, bills, executive orders, administrative orders, rules, 
or regulations inconsistent herewith, are hereby repealed, amended or modified accordingly. 
 
 
Sec. 18. Effectivity – This Act shall take effect fifteen (15) days after its publication in the 
Official Gazette or in at least two (2) newspapers of general circulation. 
 
 
 
Approved,