IEMOP proposes nationwide system for renewable energy development

MANILA, Philippines — The operator of the wholesale electricity spot market (WESM) is proposing the development a nationwide system to establish the country’s renewable energy market (REM).

The Philippine Renewable Energy Market System (PREMS) was set to be implemented by January 2019, but may face delays due to a failed bidding, Independent Electricity Market Operator of the Philippines Inc. (IEMOP) president Francis Saturnino Juan said.

The development of PREMS is part of the joint effort of  the United Nations Development Program (UNDP), the Department of Energy (DOE) and the Global Environment Facility (GEF) called Development for Renewable Energy Applications Mainstreaming and Market Sustainability (DREAMS) Project.

UNDP and GEF have extended to the DOE a financial grant amounting to $38 million for the project which aims to reduce greenhouse gas (GHG) emissions by promoting and facilitating the commercialization of the RE markets through the removal of barriers to increase investments in RE-based power generation projects.

Earlier this year, the UNDP sought bids to develop a nationwide system for the commercialization of the Philippine REM.

The initial round of bidding failed and the next process could take place by the middle of next year, Juan said.

Because of the failed bidding, the newly-established WESM operator is making a pitch to develop the PREMS.

“We proposed to do it if we need to observe the January 2019 timeline. There was reference in the rules to make the market operator as registrant,” Juan said.

“But we’re still seeking clarity or guidance on that. In case we are tapped to do it, then we’re preparing already the org and the necessary system,” he said.

A mechanism under the Renewable Energy Act passed in 2008, the REM is a market for the trading of renewable energy certificates (RECs) under the Renewable Portfolio Standards (RPS) and green energy option program (GEOP).

RPS requires distribution utilities to source a portion of their power supply from eligible renewable energy producers, while GEOP empowers end-users to choose renewable energy resources for their energy requirements.