The Department of Energy (DOE) says the Renewable Energy Market (REM) will begin full commercial operations on December 26.
Philippine Star reported that in a circular issued on December 6, the DOE confirmed the full implementation of the REM, which has been in interim operation since 2022.
With the REM’s full launch, the Independent Electricity Market Operator of the Philippines (IEMOP) will take over as the Renewable Energy Registrar (RER) from the Philippine Electricity Market Corporation.
The RER is tasked with issuing, safeguarding, and verifying RECs. To date, the price of RECs is capped at Php 241.56 per megawatt-hour (MWh), as determined by the Energy Regulatory Commission.
The IEMOP will also manage the Philippine Renewable Energy Market System (PREMS), an automated platform supporting the RER’s functions.
According to IEMOP, 90% (or 295) of the expected 328 on-grid participants, including distribution utilities, electric cooperatives, retail electricity suppliers, and RE generators, had registered in the REM as of end-November.
The REM serves as the trading platform for Renewable Energy Certificates (RECs), which represent the amount of power generated by renewable energy (RE) facilities. This mechanism enables participants to comply with Renewable Portfolio Standards (RPS) obligations.
RPS is a policy requiring power suppliers to source at least 11% of their energy from eligible RE plants.
The full operation of the REM is expected to drive the government’s goal of increasing renewables’ share in the energy mix to 35% by 2030 and 50% by 2040.
