PH renewable energy market to open Dec. 26
By Alena Mae S. Flores – December 10, 2024, 7:05 pm
from manilastandard.net
The Department of Energy (DOE) said Tuesday the renewable energy market (REM) will start full commercial operations on Dec. 26, 2024 after all critical preparatory activities were completed.
It issued DC 2024-12-0031 declaring the start of full commercial operations of the REM—a venue for the trading of renewable energy certificate (REC), a market-based instrument that represents renewable and environmental attributes from one megawatt hour of electricity generation from duly registered eligible RE facilities.
One-megawatt-hour of RE generation is equivalent to one RE certificate, with the Energy Regulatory Commission setting a price cap of P241 per RE certificate.
It is intended as a facility for mandated participants to comply with their renewable portfolio standards (RPS) obligations.
RPS requires mandated participants to source a portion of their energy supply from eligible Renewable Energy (RE) facilities.
The DOE said in a letter dated Nov. 5, 2024 that the Philippine Electricity Market Corp. and the Independent Electricity Market Operator of the Philippines attested that all critical activities under the REM readiness criteria were satisfactorily completed and recommended proceeding with the declaration of the full commercial operations of the REM.
PEMC is the governance arm of the Wholesale Electricity Spot Market, the trading floor of electricity while IEMOP is the operator.
The DOE issued Department Circular DOE DC No. 2022-06-0019 declaring the interim commercial operations (I-COP) of the REM in June 2022 which aims to prepare the market for full commercial operations while awaiting the determination of the REC price cap and its methodology, rules on the recovery mechanism for the cost of RPS compliance by regulated entities, and structure and level of REM transaction fees.
These regulatory frameworks form part of the readiness criteria to enable the effective implementation of the REM.
