ALMOST 300 entities are expected to participate in the Philippines’ Renewable Energy Market (REM), which is expected to become fully operational on Dec. 26, the Department of Energy (DoE) said on Monday.
“The full commercial operation of the REM is pivotal in advancing the country’s clean energy transition,” Energy Secretary Raphael P.M. Lotilla said in a statement. “It supports compliance with the RPS (renewable portfolio standards), fosters investment in renewable energy and ensures a robust framework for sustainable energy trading.”
Under Republic Act No. 9513 or the Renewable Energy Act of 2008, the DoE must establish REM for the trading of RE certificates, equivalent to one-megawatt-hour of RE generation.
The REM provides a platform for trading these certificates, allowing participants to meet their obligations under renewable portfolio standards.
The standards require distribution utilities, electric cooperatives and retail electricity suppliers to get a portion of their energy supply from eligible RE resources, contributing to the growth of the RE industry in the country.
In 2023, on-grid power suppliers were ordered to expand the share of RE in their output to 2.52% from 1%.
The REM launched its interim commercial operations in 2022.
Mr. Lotilla said the Energy Regulatory Commission, Independent Electricity Market Operator of the Philippines, Philippine Electricity Market Corp. and private stakeholders have worked with the DoE in ensuring the readiness and operationalization of the REM.
The Energy chief said the trading and usage of RE certificates are expected to become more frequent as renewable energy demand continues to grow.
“With the REM now fully operational, the country is poised to harness the power of renewable energy for a cleaner and greener future,” the DoE said.
The Philippine government seeks to increase the share of renewable energy in the country’s power generation mix to at least 35% by 2030 and 50% by 2040. — Sheldeen Joy Talavera
