The Philippine Electricity Market Corp. (PEMC) launched the interim commercial operations (ICOP) of the Renewable Energy Market (REM) yesterday.
REM is the venue for the trading of Renewable Energy Certificates (RECs) equivalent to an amount of power generated from RE resources intended as a facility for participants to comply with their Renewable Portfolio Standards (RPS) obligations.
Under the RPS, distribution utilities are mandated to source an agreed portion of their energy supply from eligible RE suppliers to contribute to the growth of the industry in the country.
Clares Loren Jalocon, PEMC head of corporate planning and communications, said under the ICOP phase of REM, there will still be no trading of RECs and no financial transactions as the REC price cap is yet to be decided by the Energy Regulatory Commission.
During the ICOP, PEMC said participants are expected to join efforts to validate and confirm the RECs they receive as well as attend to market-related trainings and events of the market’s fundamentals and processes.
PEMC said the promulgation of the Department of Energy’s Circular declaring the ICOP of the REM on June 30 sets the actual start of the interim commercial operations on August 26.
PEMC started REM participant registration in 2020 and has processed and approved about 96 percent of the applications upon the completion of requirements.
“The pandemic notwithstanding, the overwhelming response to the REM has been beyond anything we expected. As of July 2022, with the REM expected participants reaching 281, 98 percent of this have lodged their application with PEMC expressing their interest to participate,” Jalocon added.
PEMC is designated to perform the RE Registrar functions which shall establish a Renewable Energy Registrar and issue, keep and verify RECs corresponding to energy generated from eligible RE facilities.
PEMC issues one REC for every megawatt hour of actual generation from eligible RE facilities to REM participants.
