PHILIPPINES Law and Practice Contributed by: Maria Lethel C. Alburo-Mejia, Puno Law
3.5 Decommissioning a Generation Facility Generation companies intending to decom- mission their generating plant or unit that has reached its maximum economic life and is no longer viable to operate must submit a letter to the DOE signifying its intention to decommission its generating plant or unit at least 365 days prior to the target decommissioning date. The DOE will evaluate the application as to the appropri- ateness of the decommissioning and its impact on the power system. The same procedure applies in respect of mothballing of a generat- ing plant or unit. There is no specific requirement to set up a decommissioning fund. However, a generation company is required to establish an environmen- tal guarantee fund (EGF) that is immediately dis- bursable for the immediate rehabilitation of areas affected by damage to the environment and the resulting deterioration of environmental quality as a direct consequence of project construction, operation and abandonment, among others. The amount of the EGF will be determined by a com- mittee composed of representatives from the DENR, the local government unit, the affected community, the generation company and others as may be identified. 4. Transmission Lines and Associated Facilities 4.1 Constructing and Operating Transmission Lines and Associated Facilities The construction and operation of transmission lines and associated facilities are generally gov- erned by the EPIRA and its implementing rules and regulations, the issuances of the ERC and the Philippine Grid Code.
wise made with the Department of the Environ- ment and Natural Resources (DENR). The DENR is the government agency that administers pub- lic lands in the Philippines. Land rights over private lands, on the other hand, are typically secured by agreement with the private landowners. 3.3 Approvals to Construct and Operate Generation Facilities The terms and conditions of approvals vary. Approvals generally require compliance with the applicable laws under which the approvals were issued. As an example, the COC requires com- pliance with the EPIRA and the ECC requires compliance with environmental laws. Terms and conditions of approvals are not subject to amendments. 3.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Generation Facilities Eminent domain, also known as expropriation, is a power vested in the state to take private prop- erty for public use upon payment of just com- pensation. Private generation companies gener- ally cannot compel the state to exercise eminent domain for the purposes of acquiring sites for their projects. However, under the renewable service energy contracts awarded by the DOE pursuant to the RE Act, the government, through the DOE, undertakes to provide assistance to the renewable energy developer, including the exercise of power of eminent domain, if neces- sary, to secure rights of way and similar rights on, over, under, across and through a contract area, if the RE developer is unable to secure such rights at commercially reasonable costs through negotiations, and the same is the most expedient course of action to support the timely execution of renewable energy operations.
269 CHAMBERS.COM
Powered by FlippingBook