In order to fully achieve the main objective behind the granting of private power accreditations and incentives to cogeneration projects, which is to promote the utilization of energy efficient technologies in the country, all cogeneration project proposals submitted for accreditation and/or availment of incentives should satisfy the following technical definitions and qualifications:

1.      Definition of a Cogeneration Facility.

Cogeneration Facility means a facility which produces electricity or mechanical energy and forms of useful thermal energy (such as heat or steam) for industrial, commercial, heating, or cooling purposes through the sequential use of energy.

2.      Technical Qualification Criteria.

Cogeneration facilities should be able to attain a cogeneration system efficiency of sixty percent (60%) at the minimum.  For calculation purposes, the following definitions would apply:

a.      Efficiency =

useful energy output X 100%
_______________
energy input

b.      Useful Energy Output is defined as the sum of electricity or mechanical power plus the useful heat in the steam or hot exhaust gases and such other thermal energy recovered for useful purposes.

c.       Energy Input is defined as kilograms of fuel per hour multiplied by the Higher Heating Value (HHV) as received.

These definitions and qualifications for cogeneration facilities shall take effect immediately.

Adopted: 24 June 1993

(Sgd.) DELFIN L. LAZARO
Secretary