MANILA, Philippines — The Philippine Electricity Market Corp. (PEMC) is working closely with energy agencies and market participants to ensure that operations of the renewable energy market (REM) will be successful leading toward a sustainable clean energy future for the country.
PEMC president Elvin Hayes Nidea said they are in the process of transferring the operation of the REM and its system to the Independent Electricity Market Operator of the Philippines (IEMOP).
PEMC is currently in charge of the REM, which is the venue for mandated participants to buy and sell renewable energy certificates for them to comply with their annual renewable portfolio standards (RPS) obligation, as set by the Department of Energy (DOE).
The REM is one of the nine programs envisioned to be implemented in the Renewable Energy Act of 2008.
Nidea said the future set up will define the critical roles of PEMC, IEMOP, DOE, and Energy Regulatory Commission (ERC) in making sure the operation of the REM is successful.
“Focusing on our governance function, PEMC and the REM Governance Committee oversee the compliance of the REM participants with their RPS obligations and improve the market rules and efficiency,” Nidea said.
“The DOE focuses mainly on the policy making aspect such as the promulgation of policies and setting of RPS requirement. On the other hand, ERC issues guidelines and rules on renewable energy-related programs, as well as the cost recovery mechanism for the RPS mandated participants and the methodology and determination of renewable energy certificates price cap,” he said.
In the REM, each mandated participant receives renewable energy certificates based on the generation from feed-in-tariff eligible facilities and their contracts with renewable energy generators, as well as the actual generation of their registered net-metering facilities and supply from the green energy option program.
Through the REM, PEMC said most of the programs in the RE Law would be implemented and contribute to the gradual increase in the usage of renewable energy as mandated by the government on the power industry, both for the generators and consumers.
There also have been efforts from PEMC to promote the increase of investments in the renewable energy sector through a partnership with the United Nations Office for Project Services.
PEMC said the Southeast Asian Energy Transition Partnership is looking into the possibility of introducing a voluntary renewable energy market in the Philippines which could help accelerate the plans of the government of 50 percent renewables in the power generation mix by 2040.
PEMC is a non-stock, non-profit corporation incorporated in November 2003 upon the initiative of the DOE with representatives from the various sectors of the electric power industry.
It remains as the governing body of the Wholesale Electricity Spot Market, primarily through the PEMC board of directors and the WESM and renewable energy market governance committees.