MANILA, Philippines - The Department of Energy (DOE) expects the establishment of the first renewable energy (RE) market by next year, a ranking official said.
Energy Undersecretary Josefina Patricia Asirit said they have been coordinating closely with the United States Agency for International Development (USAID) which is carrying out the first phase of the study on the RE market.
The USAID, which has provided technical assistance for the study, is helping the DOE come up with an inception report that would provide the roadmap for the establishment of the RE market.
Asirit said the second phase would involve the World Bank, which also provided a technical grant and would assist the DOE in crafting a design for the RE market.
Depending on the study and the design to be recommended by USAID and the World Bank, the RE market would be put in place anytime within next year or 2013, she said.
But the DOE official pointed out that the setting up of the RE market should coincide and should be consistent with the rules on Renewable Portfolio Standards (RPS) and installation targets for RE.
The RPS rules, she said, are expected to be published anytime before the end of the year.
Asirit said they would also be consulting the energy stakeholders for their views on the RE market.
Based on initial studies, she said they may not be creating a new market for RE but would only include it as another commodity to be traded at the existing wholesale electricity spot market (WESM).
In an earlier report by the DOE, the RE market is envisioned to become a venue for issuance, trading and monitoring of RE certificates to comply with the RPS.
As defined under the RE Act, the RPS refers to a market-based policy that requires electricity suppliers to source an agreed portion of their energy supply from eligible RE sources.
The purpose of the RPS is to contribute to the growth of the renewable energy industry by diversifying energy supply and help address environmental concerns of the country by reducing greenhouse gas emissions. This will be imposed on all electric power industry participants, serving on grid areas, on a per grid basis upon determination by the New and Renewable Energy Board (NREB).