SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
S.No. 2352 
) 
) 
) 
Introduced by Senator Ralph G. Recto 
AN ACT 
'14 
AUG 12 P2 :50 
PROMOTING THE DEVELOPMENT AND UTILIZATION OF RENEWABLE 
ENERGY IN ALL GOVERNMENT BUILDINGS AND OFFICES, PROVIDING FUNDS 
THEREFOR, AND FOR OTHER PURPOSES 
Explanatory Note 
Energy security is a critical factor in achieving our economic growth targets in the short-, 
medium- and long-term set at 6.5% this year, at 7.5% in 2015-16 and at 8.4% in 2017-20. At the 
same time, our government is hard-pressed to fulfill its commitments to de-carbonize the energy 
industry for Scenario 450 \ achieve 60% energy independence and pursue higher electrification 
rates2, even as the population continuous to grow at an average of2.2% in 2010-2020 and 1.6% 
in 2020-2030. 
Additional pressure comes from rising price of oil worldwide, since oil and other fossil 
fuels will continue to account for our energy consumption until 2020.3 (15,883.13·KTOE out of 
28,190.27 KTOE, or Thousand Tonnes of Oil Equivalent) The International Energy Agency 
predicts world price at US$J28/Blue barrel (bbl) in 2035, using modeling that factor F&D costs 
(finding and development of new resources)4. On the other hand, the ORB (OPEC Reference 
Basket) projects an average nominal price ofUS$IIO/bbl up to 2020 and US$160/bbl by 20355. 
For the planning period of 2009-2030, the Philippines Development Plan 2011-2016 puts 
our energy deficit for the 20-year period in the different grids based on a 4.5 demand growth as 
follows: 11,900 MegaWatts in Luzon; 2,150 MW in the Visayas; and, 2,500 MW in Mindanao. 
In the short-term, we are facing power supply deficit by grid from the Second Quarter of 
2015 to 2018 as follows: 
For Luzon: From April to May 2015, there is a projected deficit of 184 MegaWatts, 
on Available Capacity. (Based on a 4.2 percent peak demand growth rate and a 7% Gross 
Domestic Product growth rate target for 2013 to 2015.) 
For Visayas: By November and December this year, the region faces a deficit of30 to 
90MW, on Available Capacity. (Based on a 7% peak demand growth rate and a 7% GDP 
growth rate target for 20 13 -15.) 
For Mindanao: A 55-85MW power deficit is anticipated by November to December 
2017, on Available Capacity. (Based on a 5.6% peak demand growth rate and 7% GDP 
growth rate target for 2013-15.) 
1 http://www.worldcncrgyoutlook.orgL 
2 Philippmc Development Plan 2011-16 Chapter 5 Acceleratll1g Infmstructurc Development. 
3 Drafl 2013-2020 Supply and Demand Olltlook, As of August 28, 2013 Department of Encrgy 
~ http://www . ica.orgipubl ications/freepubl ications/pubheatlOnJW EI020 14 pdf 
5 OPEC Reference Basket [Saharan Blend (Algena), Glrassol (Angola), Oriente (Eeuadot), Iran Heavy (Islamic Repuhltc of Iran), Ba&ra Light 
(haq), Kuwait EX)lOlt (Kuwait), Es Sidel (Libya), Bonny Light (NigeJia), Qatat Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and 
MCley (Venezuela)] 
Page 1 of3 


Likewise, the Energy department forecasts average forced outage of the dependable 
capacity in the three regions, as follows: 6.6% for Luzon; 7% for Visayas; and, 3.41 % for 
Mindanao. 
This proposed measure seeks to alleviate an impending power crisis and to provide for 
the country's long-term energy security. Power supply deficits, whether short-tenn or long-term 
negatively affect economic growth targets, obstruct government's delivery of basic services, 
delay business expansion, constrict job oppoliunities and set back the country's competitiveness 
as we approach integration with the rest of Southeast Asia. The effects of power outages will be 
felt by millions of Filipinos through the years. To illustrate: 
2013-2020 Projected Number of Customers of Distribution Utilities6 
2014 
2015 
2016 
2017 
2018 
A. 
Residential 
15,092,345 
15,683, I 07 
16,294,631 
16,851,974 
17,423,173 
B. 
Commercial 
1,148,502 
1,190,507 
1,235,445 
1,281,898 
1,330,257 
C. 
Industrial 
38,847 
39,849 
40,955 
42,108 
43,354 
D. 
Others 
317,751 
329,699 
342,395 
355,707 
369,857 
E. 
Total 
16,597,445 
17,243,162 
17,913,425 
18,531,687 
19,166,641 
To achieve a cost-effective solution to the looming power crisis, this Bill seeks to 
mandate the DPWH in coordination with the DOE to construct RE systems in and retrofit 
government buildings and offices, by installing Solar Energy Systems as Solar Energy is the 
most abundant RE resource and can be installed and generate power more speedily. This is in 
contrast to fossil fuel-based power plants that need a minimum of three to five years gestation 
period. 
Solar Energy Systems can provide pmi of the Energy department's recommendation for 
the installation of 400-500 MW additional capacity. The projected 200 Megawatt deficit will be 
most felt next year from March to May, the months with highest demand.7 
According to the RE resource assessment conducted by the DOE, the country's Solar 
Energy annual potential average is estimated at 5.1 kilowatt-hour (kWh)/m2/day8 which 
represents fuel input that is free-of-charge and will not affect our foreign currency reserves as 
impOlied petroleum and other fossil fuels do. In addition, the production and installation of 
materials and equipment for use in Solar Energy Systems incur minimal environmental and 
physical impacts. 
Solar Energy Systems do not require extraction activities like large-scale ml11l11g or 
drilling which bring about negative environmental impacts. It does not generate Greenhouse 
G~ses such as carbon and methane nor emit particulates that are the bane of fossil fuels. Most 
important, solar panels can be installed on rooftops and designated areas without disrupting 
activities or dislocating electric power consumers. Solar Energy systems also generate great 
savings versus fossil-fueled power plants whose feed stocks have to be transported over long 
distances for which generators incur transport or hauling costs. 
This Bill also creates opportunities for employment in tenns of new jobs generated and 
enhanced skills of Filipino labor in the RE industry that will push their competitive edge 
worldwide. Currently, the $800 Million in 'direct investments in the RE industry is expected to 
create 3,500 new jobs. Meanwhile, by jumpstmiing the RE industry through this Bill, the country 
will be well on its way towards achieving its target of 20,000 to 50,000 jobs in the RE industry 
by 2020. 
6 Draft 2013-2020 Supply and Demand Outlook, As of 8-28-13. DOE 
7· 11 ups:1 /www.doe.gov.ph/news-cvents/ncws/m ess-releases124 3 8 -measures-to addrcss-20 15 -tight-sum) lv-proposed 
M hUrs:1 /www.doc.goY.ph/renewable-ene! gy-l es/biOmass-solar-wmd-and -ocean 
Page 2 of3 


Likewise, this Bill will provide the impetus for the country to reach its target RE 
utilization of 15,000MW in 2030, Ii'om the current 5,000MW RE utilization. 
The mandate and definite timelines provided for in this Bill shall enable the country to 
close the gaping power deficit, especially since several committed projects for 2015 have been 
delayed for technical and regulatory reasons. 
The RE Systems to be established shall initially supply at least J 0 percent (J 0%) of the 
electric power requirements of the government agencies in their respective buildings or offices, 
at the minimum, which shall be gradually increased so that continuous power supply will enable 
all government agencies to perform their vital functions. 
Hence, the passage of this bill is earnestly sought. 
dbg 
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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
S.No. 2352 
) 
) 
) 
Introduced by Senator Ralph G. Recto 
AN ACT 
'14 
AUG 12 P2 :50 
PROMOTING THE DEVELOPMENT AND 
UTILIZATION OF RENEWABLE 
ENERGY IN ALL GOVERNMENT BUILDINGS AND OFFICES, PROVIDING FUNDS 
THEREFOR, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. 
Title. - This Act shall be known as "The Green Energy Government 
2 
Offices Act 0[2014". 
3 
SEC. 2. Declaration qf Policies. - It is hereby declared the policy of the State: 
4 
a) To mandate the development and utilization of renewable energy resources m 
5 
government buildings and offices; 
6 
b) To establish the infrastructure and mechanisms to ensure efficient, cost-effective and 
7 
sustainable supply of power fi'om renewable energy systems; and 
8 
c) To ensure energy-sufficiency of government agencies for the prompt and unhampered 
9 
delivery of services to its constituents. 
10 
SEC. 3. Coverage. - This Act shall provide a framework for the establishment of 
11 
renewable energy systems in all government buildings and offices. 
12 
SEC. 4. Definition qf Terms. - As used in this Act, the following terms and phrases are 
13 
herein defined: 
14 
a) Hybrid System shall refer to any power or energy generation facility which makes use 
15 
of two or more types of technologies utilizing both conventional and/or renewable 
16 
fuel sources, such as, but not limited to, integrated solar/wind systems, biomass/fossil 
17 
fuel systems, hydro/fossil fuel systems, integrated solarlbiomass systems, integrated 
18 
wind/fossil fuel systems, with a minimum of ten (10) megawatts or ten percent (10%) 
19 
of the annual energy output provided by the RE component; 
20 
b) Renewable Energy (RE) Resources shall refer to energy resources that do not have an 
21 
upper limit on the total quantity to be used. Such resources are renewable on a regular 
22 
basis, and whose renewal rate is relatively rapid to consider availability over an 
Page 1 of3 


· . 
1 
indefinite period of time. These include, among others, biomass, solar, wind, 
2 
geothermal, ocean energy, and hydropower conforming with internationally accepted 
3 
norms and standards on dams, and other emerging renewable energy technologies; 
4 
c) Renewable Energy (RE) Systems shall refer to energy systems which convert RE 
5 
resources into useful energy forms, like electrical, mechanical, etc.; 
6 
d) Solar Energy shall refer to the energy derived from solar radiation that can be 
7 
converted into useful thermal or electrical energy; and 
8 
e) Solar Energy Systems shall refer to energy systems which convert solar energy into 
9 
thermal or electrical energy. 
10 
SEC. 5. Establishment of Renewable Energy Systems in Government Buildings and 
11 
Offices. - All government agencies in coordination with the Department of Public Works and 
12 
Highways and the Department of Energy (DOE) shall begin the construction of RE systems in 
13 
and retrofit their respective buildings and offices within sixty (60) days after the effectivity of 
14 
this Act: Provided, That nothing in this Act shall preclude the expansion of the RE Systems 
15 
beyond the 31 st of December 2014; Provided further. That RE utilization shall be increased 
16 
annually for five years at which point the established RE Systems are expected to have the 
17 
capacity to supply 50% of the power requirements of all government agencies. 
18 
SEC. 6. General Guidelines. - For the purposes of this Act, the following are the General 
19 
Guidelines for RE systems in government buildings and offices: 
20 
a) The RE system to be established and constructed shall commence to supply power to 
21 
the government buildings or offices on or before the 31 st of December 2014; 
22 
b) The Department of Finance shall apply the appropriate provisions of Chapter VII 
23 
General Incentives of Republic Act No. 9513 or the Renewable Energy Act of 2008 
24 
to the RE Systems to be established and constructed for government ag~ncies; 
25 
c) Government agencies shall enjoy the privileges granted to qualified end-users as 
26 
certified by the DOE-Renewable Energy Management Bureau, as provided for in 
27 
Sections 10 and 12 ofR. A. No. 9513; and 
28 
d) To ensure sufficient power supply and cost-effectiveness, Hybrid Systems shall be 
29 
allowed to continue to supply power to government buildings and offices, in 
30 
conjunction with Solar Energy being the most abundant RE resource. 
31 
SEC. 7. Minimum Standard. - The RE Systems to be established shall supply at least ten 
32 
per cent (10%) of the electric power requirements of the government agencies in their respective 
33 
buildings or offices for the first year after the effectivity of this Act. 
34 
SEC. 8. Funding. - The amount necessary [or the immediate implementation of this Act 
35 
shall be charged against any available funds of the government agencies covered in this Act. 
36 
Thereafter, such sums as may be necessary to implement this Act shall be included in the 
37 
General Appropriations Act (GAA). 
Page 2 of3 


, . 
1 
SEC 9, Implementing Rules and Regulations. - The Depalimenl of Energy shall provide 
2 
the necessary implementing rules and regulations for the effective implementation within thirty 
3 
(30) days npon the approval of this Act. Snch rules and regnlations shall take efIect after they 
4 
have been made and shall be pnblished in at least two (2) newspapers of general circnlation. 
5 
. SEC. 10. Separability Clause. - Any portion or provision of this Act that may be 
6 
declared nnconstitntional or invalid shall not have the effect of nnllifYing other portions or 
7 
provisions hereof, as long as such remaining portions or provisions can still subsist and be given 
8 
effect in their entirety. 
9 
SEC. 11. Repealing Clause. - All laws, acts, decrees, executive orders, issuances, and 
10 
rules and regulations or patts thereof which are contrary to and inconsistent with this Act are 
11 
hereby repealed,' amended or modified accordingly. 
12 
SEC. 12. Effectivity. -
This Act shall take effect fifteen (15) days following its 
13 
publication in at least two (2) newspapers of general circulation or the Official Gazette. 
14 
Approved. 
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