December 25, 2024 | 12:00am
MANILA, Philippines — The renewable energy market (REM) is set to begin its full commercial operation tomorrow, with close to 300 trading participants expected to register.
The REM is the venue for buying and selling renewable energy certificates (RECs) equivalent to an amount of power generated from RE facilities such as solar, wind, hydro, geothermal and biomass.
This market enables trading participants to comply with their obligations under the Renewable Portfolio Standards, a policy that mandates power suppliers to source an agreed portion of their energy supply from eligible RE plants.
The launch of the REM tomorrow is “pivotal in advancing the country’s clean energy transition,” Energy Secretary Raphael Lotilla said.
“It supports compliance with the RPS, fosters investment in renewable energy, and ensures a robust framework for sustainable energy trading.”
In 2023, the annual incremental RPS requirement for grid-connected areas was raised from one percent to 2.5 percent.
For this year, renewables are expected to meet 11.4 percent of the total power demand.
Lotilla anticipates the trading and usage of RECs to become more frequent as RE continues to grow.
Issued to mandated participants, RECs are currently capped at a price of P241.56 per megawatt hour as determined by the Energy Regulatory Commission.
To date, around 285 participants such as generators, distribution utilities and end-users are anticipated to register with the REM.
“The DOE projects that REC trading will significantly contribute to meeting RPS requirements and stimulate growth in renewable energy capacity,” the agency said.
REM, which has been in interim operation since 2022, is aligned with the government’s ambitious goal of increasing the share of renewables in the energy mix to 35 percent by 2030 and 50 percent by 2040.
“The launch of REC trading represents a major step forward in the Philippines’ commitment to energy security, economic growth and environmental sustainability,” the DOE said.
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