The Department of Energy (DOE) has declared the full commercial operation of the country’s Renewable Energy Market (REM).
DOE Secretary Raphael Lotilla on December 6 issued a department circular declaring the commercial operation of REM.
The REM is a venue for the trading of Renewable Energy Certificate (REC), a market-based instrument that represents renewable and environmental attributes from one megawatt hour (MWh) of electricity generation from duly registered eligible RE facilities.
With full commercial operation of REM, distribution utilities (DUs) and electric cooperatives (ECs) can purchase RECs to comply with the renewable portfolio standards which mandate them to source a portion of their energy supply from RE facilities.
Based on data from the Independent Electricity Market Operator of the Philippines (IEMOP), the price of REC is currently capped at P241.56 per MWh. IEMOP said as of Nov. 26, 2024, 90 percent or 295 of the expected 328 on-grid participants which include RE generators and mandated participants such as DUs and ECs, retail electricity suppliers and generators serving directly connected customers have registered.
