The Philippine Electricity Market Corporation (PEMC) and Independent Electricity Market Corporation of the Philippines (IEMOP) said they have clearly “demarcated” the respective functions of each entity in the operation of the Renewable Energy Market (REM), which will serve as added layer of trading in the Wholesale Electricity Spot Market.
In a correspondence to Manila Bulletin, the two entities jointly stated that “in relation to the RE Market and by virtue of the relevant provisions of applicable RE (Renewable Energy) Laws, IEMOP as the market operator shall assume the performance of the RE Registrar (RER) functions; while PEMC shall continue to perform its responsibilities as the REM Governance arm as stated in the REM Rules and pursuant to the policy objectives of the RE Act.”
PEMC and IEMOP conveyed that on 30 March 2023, PEMC President Elvin Hayes E. Nidea and IEMOP President & CEO Richard J. Nethercott finalized the draft memorandum of agreement (MOA) which, among other terms, laid down the respective roles of PEMC and IEMOP in the governance and operations of the Philippine Renewable Energy Market System.
The two entities also clarified that there was no “tug of war” that happened as to which one of them will have supervision over the RE Market. Industry players, however, are cognizant of some sort of a “power struggle” between the parties when it comes to operationalizing the RE Market.
In a press statement issued on July 28, 2022, PEMC claimed that “pursuant to Section 8 of RE (Renewable Energy) Act, it 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,” adding that “such certificates will be used for compliance with the Renewable Portfolio Standards (RPS).”
It is the RER or registration function in the RE Market that was finally resolved and was ultimately accorded to IEMOP; compared to the previous claim of PEMC that it is the rightful authority to exercise that role.
PEMC added that Philippine RE Market “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 also noted then that “as the DOE-designated RER, (it) issues one REC for every MWh (megawatt-hour) of actual generation from eligible RE facilities to REM participants.” At the time, it was also PEMC that launched and has been enlisting the registrations of RE Market participants.
The “divergence in approach” of the two entities was not resolved during the tenure of former Energy Secretary Alfonso G. Cusi. However, the issues between them were finally sorted out with the new leadership at PEMC and is expected to help address market risks in the massive-scale renewable energy (RE) installations being pushed by the government.
