The Philippine Renewable Energy Market (REM) is the venue for the trading of RE Certificates equivalent to an amount of power generated from RE resources, and is intended as a facility for Mandated Participants to comply with their Renewable Portfolio Standards (RPS) obligations. The RPS refers to a market-based policy that mandates electricity suppliers to source an agreed portion of their energy supply from eligible RE resources contributing to the growth of the RE industry in the country.
The Renewable Energy Act (R. A. 9513) or the RE Act is the legislation that provides for the establishment of the REM. Pursuant to Section 8 of the RE Act, the Department of Energy (DOE) shall establish the REM and shall direct the Philippine Electricity Market Corporation (PEMC) to incorporate changes to the Wholesale Electricity Spot Market (WESM) Rules for the operation of the REM under the WESM.
The objectives of the REM are to:
Establish a fair and transparent market for the trading of RECs
Facilitate compliance with RPS through mechanisms established under the REM Rules
Ensure level playing field for all REM participants
Ensure REC prices are governed as far as practicable by the fundamentals of supply and demand
Ensure that the prices of RECs are, in the long-term, reflective of the benefits of bringing an additional MWh of RE generation into the Philippine electricity system
Issue RECs only to actual RE generation from eligible RE generating facilities
Click here to learn more about the RE Market