The Independent Electricity Market Operator of the Philippines (IEMOP) is transitioning the renewable energy market (REM) to full commercial operations before the end of the year, potentially unlocking new benefits for renewable energy developers.
IEMOP corporate planning and communications manager, Arjon Valencia, confirmed that the REM, which has been operating under interim commercial status since 2022, is expected to fully launch by next month. This move comes as part of efforts to strengthen the country’s renewable energy (RE) sector and help participants meet their renewable portfolio standards (RPS) obligations.
The REM serves as a platform for the trading of renewable energy certificates (RECs), which are issued for RE power generation. These certificates enable participants—including electric cooperatives, distribution utilities (DUs), and retail suppliers—to fulfill their RPS commitments, which require a portion of their energy supply to come from eligible renewable sources.
Valencia explained that while the REM spans the entire national grid, participants from the off-grid sector will be excluded from the full commercial launch for now, as the Department of Energy is still finalizing the regulatory framework for off-grid transactions.
“The RE Market will facilitate the compliance of mandated participants across all three grids in the Philippines,” said Valencia. “It provides a structured mechanism for DUs and other entities to meet their renewable energy quotas using RECs.”
The Energy Regulatory Commission (ERC) has set a price cap of P241 per REC, with each certificate representing one megawatt-hour of RE generation.
While IEMOP is optimistic about the REM’s progress, there are still unresolved issues, such as the decision on the reserve market transaction fees. However, IEMOP, along with the Philippine Electricity Market Corporation, is preparing to submit a joint certification to signal that the market is ready for full-scale operations, despite this outstanding matter.
IEMOP’s target for the REM’s commercial launch is seen as a significant step forward in the Philippines’ push to expand its renewable energy capacity and create a more sustainable energy market.
