The Department of Energy (DOE) has declared the interim commercial operations (I-COP) of the renewable energy market (REM) as the venue for trading renewable energy certificates (RECs).
The Department Circular 2022-06-0019 signed by former Energy Secretary Alfonso Cusi was posted on DOE’s website on Monday.
However, the actual date of the commencement of the REM I-COP has yet to be declared as the REC price cap has yet to be determined by the Energy Regulatory Commission (ERC).
“The REM I-COP shall not yet involve any financial transactions, until such time that the commercial operations of the REM has been declared by the DOE,” the circular noted.
Under the circular, the ERC is tasked to determine the REC price cap and the methodology, as well as the rules on the recovery mechanism for the cost of the Renewable Portfolio Standards (RPS) Compliance by regulated entities, and the structure and level of market transaction fees for the REM.
The Philippine Electricity Market Corp. (PEMC) is assigned to take over the registration of REM participants and adjust the issued RECs as needed.
“PEMC shall, under the supervision of the DOE, establish and operate the Renewable Energy Registrar (RER) and shall issue, keep, and verify RE Certificates corresponding to the energy generated from eligible RE facilities, which shall be used by mandated participants for compliance under the RPS.” the circular said.