OPERATIONS of the Philippine renewable energy market (REM) will start on Dec. 26, the Department of Energy (DOE) announced in a circular on Tuesday.
The REM — the venue for trading renewable energy certificates (RECs), the currency or amount of power generated from renewable sources — allows mandated participants to comply with their Renewable Portfolio Standards (RPS) obligations in order to meet the target RE share in the country’s energy mix at 35 percent by 2030 and 50 percent by 2040, in accordance with Republic Act (RA) 9513 or the Renewable Energy Act of 2008.
Section 8 of the RE Act directs the DOE to establish the REM and authorize the Philippine Electricity Market Corporation (PEMC) to incorporate changes to the Wholesale Electricity Spot Market (WESM).
REC prices will be determined by supply and demand. For fairness, RECs will be issued only for actual generation from eligible facilities. Each facility will receive one REC for every megawatt-hour (MWh) of verified RE generation.
The current price of RECs, which is set by the Energy Regulatory Commission (ERC), is P241.56 per MWh.
The REM’s mandated participants consist of companies or electricity suppliers in on-grid areas such as distribution utilities (DUs), electric cooperatives (ECs), retail electricity suppliers (RES), local electricity suppliers (LRES), suppliers of last resort (SOLR), and generation companies (GenCos), and in off-grid areas.
The Independent Electricity Market Operator of the Philippines Inc. (IEMOP), which operates the WESM, said RE facilities must belong to one of the following technology categories: biomass, waste to energy, wind, solar, ocean, run-of-river hydro, other impounding hydro systems, geothermal, and hybrid systems.
As of Nov. 26, 90 percent or 295 of the 328 on-grid participants have registered in the REM and have active access to the Philippine Renewable Market Energy System.
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