Navigating the Regulatory Landscape
For the General Counsel, ensuring seamless project execution means successfully navigating a web of government certifications and compliance remittances. Republic Act No. 9513 or the Renewable Energy Act attempts to streamline these regulatory procedures, but it also imposes specific financial obligations to the government that must be strictly audited.
Registration Procedures and Environmental Compliance
To unlock the benefits of the Act, strict adherence to registration procedures is required. Developers and local manufacturers of RE equipment must register with the DOE through the newly created Renewable Energy Management Bureau (REMB) (Republic Act No. 9513, Section 25 and Section 32). The REMB is statutorily mandated to issue the required certification within fifteen (15) days upon request (Republic Act No. 9513, Section 26).
Furthermore, all RE operations must comply with environmental regulations. However, the law provides a procedural shortcut: it is sufficient for an RE developer to secure their Environmental Compliance Certificate (ECC) directly from the corresponding regional office of the Department of Environment and Natural Resources (DENR), rather than going through the national headquarters (Republic Act No. 9513, Section 16).
The Government Share Requirement
Legal counsel must ensure their financial teams are aware of the “Government Share.” The law dictates that the government share on RE projects shall be equal to one percent (1%) of the gross income of RE resource developers resulting from the sale of renewable energy (Republic Act No. 9513, Section 13). There are two vital exceptions to note:
- Geothermal Energy: Indigenous geothermal energy projects are subjected to a higher government share of one and a half percent (1.5%) of gross income (Republic Act No. 9513, Section 13).
- Micro-Scale Projects: Proceeds from micro-scale projects (not greater than 100 kilowatts) intended for communal purposes and non-commercial operations are completely exempt from the government share (Republic Act No. 9513, Section 13 and Section 16).
Typical Scenario: A corporation enters a Renewable Energy Service Contract with the DOE to develop a commercial wind farm.
Practical Advice for General Counsel: Draft all internal financial and operational contracts to automatically carve out the 1% Government Share from gross income projections. Furthermore, leverage the 15-day statutory mandate for REMB certification (Republic Act No. 9513, Section 26) to hold regulatory bodies accountable if project timelines stall due to bureaucratic delays.
20 June 2026
About Nicolas and De Vega Law Offices
Nicolas and de Vega Law Offices is a full-service law firm in the Philippines. You may visit us at the 16th Flr., Suite 1607 AIC Burgundy Empire Tower, ADB Ave., Ortigas Center, 1605 Pasig City, Metro Manila, Philippines. You may also call us at +632 84706126, +632 84706130, +632 84016392 or e-mail us at [email protected]. Visit our website https://ndvlaw.com.
