A join project proposal of

CEBU SOLAR INC ( CSI )

and
VISAYAN ELECTRIC COMPANY ( VECO )

Renewable Energy
Net-Metering Agreement

Submitted by :

Mr. Tommy Lee Tirey Jr.

President & CEO
Cebu Solar
cc JT Bigornia / Project Partners:
A join project proposal of CEBU SOLAR INC ( CSI )
and VISAYAN ELECTRIC COMPANY ( VECO )
Renewable Enegy Net-Metering Agreerment

Introduction :

Over the past decades , Cebu and the Visayas region has experienced a fast
economic growth in the Philippines and within the ASEAN , accompanied by
rapid urbanization.
Cebu relies heavily on coal and energy mix from oil and geothermal. This
remarkable growth has led to energy security and environmental sustainability.

The project proposal on Net- metering agreement between Cebu Solar Inc
( CSI ) a division of Advanced Solar Technology ( AST ) who ha been in the
Solar industry for 15 years and the Visayas Electric Company ( VECO ) who has
been the major power distributor of metro Cebu for the past decades to
explores the challenges on sustainable energy development path to balance the
competing objectives : enhancing energy security and sustaining economic
growth , improving local and global environment.

The Renewable Energy Act of 2008 ( Republic Act No. 9513 ). An Act promoting
the development, utilization and commercialization of renewable energy
resources and for other purposes will be the key considerations in dealing with
technical, market, pricing and financial hurdles are realities that needs to be
addressed.
A join project proposal of CEBU SOLAR INC ( CSI )
and VISAYAN ELECTRIC COMPANY ( VECO )
Renewable Enegy Net-Metering Agreerment

Sec. 7 - Net- Metering for Renewable Energy

DOE Dept. Circular no. DC2009-05-08
Rules and Regulations Implementing R.A> Act. 9513

Net- Metering is a consumer-based renewable energy incentive scheme wherin

electric power generated by the end-user from a eligble on site Renewable
Energy (RE ) generating facility and delivered to the local distribution grid may be
used to offset electric energy provided by the Delivery Distribution ( DU ) to the
end-user during applicable period.

a. Purpose : The Net –Metering program shall be implemented to encoutsge

end –user to participate in the renewable electricity generation.
b. Mandate : Upon request by the distribution end users, the DUs shall
without discrimination , enter into Net-Metering agreements with qualified
end users who will be installing an RE System, subject to technical and
economic considerations such as the DU’s metering standards for the RE
System.

As used in this IRR , “ Qualified End –user”, refers to entities that generate
electric power from an eligible on-site RE generating facility, such as ,but not
limited to, house or building with photovoltaic system that can be connected
to the grid , for the purpose of entering into a Net-Metering agreement.

Within one (1) year from the effectivity of the Act, the ERC shall, in
consultation with NREB and the electric power industry participants, establish
net-metering interconnection standards , pricing methodology and other
commercial arrangements necessary to ensure the success of the Net-
Metering for the RE program.

The DU shall be entitled to any RE Certification resulting from the Net-

Metering
Arrangements with the qualified end-user who is using an RE Resource to
provide energy. Such RE Certification shall be credited in compliance with the
obligation of the DUs under Renewable Porfolio Standards ( RPS )

The Department of Energy ( DOE ), Energy Regulatory Commission ( ERC ),

National Grid Corporation of the Philippines ( NGCP ) / TRANSCO , its
concessionaire or its successor-in-interesr, DUs, Philippine Electricity Market
Corporation ( PEMC ) and all rekevant parties are hereby mandated to
provide necessary mechanisms for the physical connection, consistent with
 the Grid and Distribution Codes, and commercial arrangement, necessary to
ensure the success of the Net-Metering for the RE program.

A join project proposal of CEBU SOLAR INC ( CSI )

and VISAYAN ELECTRIC COMPANY ( VECO )
Renewable Enegy Net-Metering Agreerment

NET-METERING AGREEMENT

:Cebu Solar Inc. ( CSI ) as Qualified End- user ( QE ) and

Visayan Electric Company ( VECO ) as Distribution Utility ( DU )

Terms of Reference :

Cebu Solar Inc. ( CSI )

1. Provide and Install a scalable Micro Hybrid / Solar farm of 150 kw to

1 megawatt as QE from an eligible on-site RE generating facility and
delivered DU to offset electric energy provided by DU to QE partners
during the applicable period.

2. Abide by the DUs metering technical standards and economic

considerations for the RE System

3. Provide Engineering Experts and Technical Personnel for the Operations

and Maintenance of the Micro Hybrid / Solar farm

Visayan Electric Company ( VECO )

1. Provide the necessary mechanisms for the physical connections ,

consistent with the Grid and Distribution Codes including on –site
metering from the CSI power generating facility .

2. Facilitate DOE, ERC , NGCP/ TRANSCO, its concessionaire or its

successor-in-interest the permits, RE benefits , certifications ,
consultations in the establishment of the net-metering connection
standards, pricing methodology and other commercial arrangement
that can be shared to CSI as part of the economic consideration.

3. Inform CSI on the monthly energy consumption and generation charge

subject to the applicable rate adjustment ( Feed –in Tariff system and RE
incentives such as tax exemption of carbon credits.
Other issues and concerns related to the join project proposal shall be part of the
formal Net-Metering Agreement