The Philippine Electricity Market Corporation (PEMC) has successfully launched the Interim Commercial Operations (ICOP) of the Renewable Energy Market (REM) on July 28, 2022 at the Marquis Events Place in Bonifacio Global City (BGC) during the event “Making REMpossible: The Launch of the Philippine Renewable Energy Market Interim Commercial Operations,” a tripartite collaboration with the Department of Energy (DOE) and the United Nations Development Programme (UNDP).
“The REM will incentivize the harnessing of our wealth of natural resources, bringing in additional, more sustainable sources of electricity. We welcome this diversification that will safeguard our energy supply security,” said PEMC President Leonido J. Pulido III.
Following the promulgation of the DOE Department Circular No. DC2022-06-0019 entitled “Declaring the Interim Commercial Operations of the Renewable Energy Market” on 30 June 2022, the REM interim commercial operations is set to commence on 26 August 2022.
Pursuant to Section 8 of the RE Act, PEMC is the entity designated to perform the RE Registrar (RER) functions which shall establish a Renewable Energy Registrar and issue, keep, and verify RE Certificates corresponding to energy generated from eligible RE facilities. Such certificates will be used for compliance with the Renewable Portfolio Standards (RPS).”
The Philippine REM is a venue for the buying and selling of Renewable Energy Certificates (REC), a market-based instrument that represents the property rights and other non-power attributes of renewable electricity generation. PEMC, as the DOE-designated RER, issues one (1) REC for every MWh of actual generation from eligible RE facilities to REM Participants.
During the REM ICOP, participants are expected to actively participate in the activities related to the validation and confirmation of the RECs they receive. REM Participants are also highly encouraged to attend market-related trainings and events that impart knowledge on relevant updates in addition to REM fundamentals and market processes.
“There is no trading of RECs, and no financial transactions are involved during the interim period, pending the approval of the REC Price Cap,” said PEMC’s Head of Corporate Planning and Communications Clares Loren C. Jalocon.
PEMC commenced the REM participant registration in early 2020 and has processed and approved about 96% of the applications upon the completion of all the 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% of this have lodged their application with PEMC expressing their interest to participate,” shared Jalocon.
Once registered, REM participants are granted access to the Philippine Renewable Energy Market System (PREMS), which performs the major market processes such as registration; REC calculation, issuance, and transfer; and reportorial requirements to the DOE on RPS compliances of the Mandated Participants.
The REM ICOP launch was attended by REM Participants as well as officials from the DOE, PEMC, UNDP, and National Transmission Corporation (TransCo). The live event was done simultaneously with a virtual one to allow more participants to witness the ceremonial launch.
“More than the numbers that will correspond to the compliance with the RPS, the RE Market paves the way for the transition to cleaner energy that leads to more benefits to the consumers, their families, the nation and ultimately, the environment”, Pulido said in his opening remarks during the launch.