The Independent Electricity Market Operator of the Philippines (IEMOP) is preparing to begin full commercial operations of the country’s renewable energy (RE) market by the end of 2024.
In an interview with reporters, Arjon Valencia, IEMOP’s corporate planning and communications manager, said that the operator is ready to launch the market but is awaiting a key regulatory step from the Department of Energy (DoE).
Specifically, IEMOP is waiting for the DoE to issue a circular that will transfer the RE market’s registration functions from the Philippine Energy Market Corp. (PEMC) to IEMOP.
“Right now, we are preparing for the RE market full commercial operations, targeted hopefully by December to go full commercial operations,” Valencia said.
“The market has still been under interim commercial operations since 2022 and the current RE registrar is PEMC but we’re expecting to have it transferred to IEMOP along with the declaration of a commercial operation. The DoE will issue a department circular.”
REC spurs green power use
The RE market is designed to allow electric cooperatives, distribution utilities (DUs), and retail suppliers to comply with the Renewable Portfolio Standards (RPS) by purchasing Renewable Energy Certificates (RECs). Each REC represents one megawatt-hour of renewable energy generated.
Valencia explained that the RECs are essential for these mandated participants to demonstrate compliance with the RPS, which requires them to source a certain percentage of their electricity from renewable sources.
While the regulatory framework for the RE market is largely in place, Valencia acknowledged that some challenges remain, including the pending approval of the Reserve Market Transaction Fee.
The fee governs how market participants recover certain costs, and its approval is necessary for full market operations.
To date, Valencia said about 17,000 net metering facilities have been registered across the country, allowing households and businesses with renewable energy systems, such as solar panels, to send excess electricity back into the grid in exchange for RECs.
However, some DUs have yet to submit their metering data to secure RE certificates for their accounts, hindering their ability to fully participate in the market.