The Philippine Electricity Market Corporation (PEMC) said the country’s Renewable Energy Market (REM) – a venue for trading Renewable Energy Certificates (REC) – was launched on Thursday.
The launch of temporary commercial operations for the Philippine Rapid Water Movement is a trilateral collaboration with the Department of Energy (DOE) and the United Nations Development Program (UNDP).
After the issuance of the Department of Energy’s Department of Energy Circular No. DC2022-06-0019 titled “Announcing Temporary Commercial Operations for the Renewable Energy Market” last June 30, REM temporary commercial operations are scheduled to start on August 26.
“It will incentivize REM to harness our wealth of natural resources, and introduce additional, more sustainable sources of electricity. We welcome this diversification that will protect the security of our energy supply,” said PEMC President Leondo J.
Pursuant to Section 8 of the Renewable Energy Act, PEMC is the entity designated to perform the functions of a Registrar of Renewable Energy (RER) that is required to establish a Renewable Energy Registrar and issue, maintain and verify a corresponding REC for energy generated from eligible renewable energy facilities. These certificates will be used to comply with the Renewable Portfolio Standards (RPS).
REC is a market-based instrument that represents the equity and other non-energy attributes of renewable electricity generation. PEMC, as a DOE-designated RER, issues one REC for each megawatt-hour of actual generation from eligible renewable energy facilities to REM participants.
During REM, participants are expected to actively participate in activities related to the validation and confirmation of the RECs they receive.
“No REC trading, and no financial transactions involved during the interim period, pending REC Price Cap approval,” said PEMC’s Head of Corporate Planning and Communications, Clarisse Lauren Gallocon.
PEMC began REM participant registration in early 2020 and has processed and approved approximately 96 percent of applications upon completion of all requirements.
“Despite the pandemic, the overwhelming response to REM has been beyond anything we expected. As of July 2022, with REM participants expected to reach 281, 98 percent of those have submitted their applications to PEMC to express their interest in participating.”
Once registered, REM participants are granted access to the Philippine Renewable Energy Market System (PREMS), which performs key market operations such as registration; REC calculation, issuance and transfer; and Reporting Requirements to the Department of Energy on RPS Compliance for Authorized Participants.
“More than numbers that align with RPS compliance, RE Market is paving the way for a transition to cleaner energy that leads to more benefits for consumers, their families, the nation, and ultimately the environment,” Pulido said. In his opening speech during the launch.
PEMC has been the governing body for the Philippines Wholesale Electricity Spot Market (WESM) for over 10 years.
WESM is a central place for buyers and sellers to trade electricity as a commodity as its prices are determined based on supply and demand. It was established in accordance with Republic Act 9136, also known as the Electric Power Industry Reform Act 2001. WESM began commercial operations in Luzon in June 2006 and in Visayas in December 2010.