MANILA, Philippines — The Philippine Electricity Market Corp. (PEMC) has partnered with the UN Office for Projects and Services (UNOPS) to prepare the electricity market for the entry of energy storage systems as part of the country’s energy transition plan.
PEMC signed a partnership agreement with UNOPS through the Southeast Asian Energy Transition Partnership (ETP) in preparation for the implementation of an energy transition roadmap.
The roadmap will be focused on introducing market mechanisms and enhancements promoting participation in the market of renewable and sustainable technologies while encouraging supply stability and diversification.
“The partnership agreement will strengthen PEMC’s governance functions and broaden its contribution to the country’s energy transition initiative, through the capacity-building and the technical assistance to be rendered by the ETP, which is to be initiated through the study about the participation in the electricity market of battery and other energy storage systems,” PEMC president Leonido Pulido III said in a statement.
ETP is a platform for governments, philanthropies, and partner countries to accelerate energy transition in Southeast Asia by increasing the deployment of renewable energy, energy efficiency, and sustainable infrastructures as well as enhancing policy alignment with climate commitments and expanding knowledge and awareness of energy transition.
“Our partnership is timely and aims to set up a resilient Battery Energy Storage Market Mechanism providing competitive conditions for the battery storage services in the wholesale electricity spot market and thus de-risk renewable energy investments as a part of the government’s efforts to dramatically increase variable renewable energy in the energy mix,” ETP director Sirpa Jarvenpaa said.
The partnership is in accordance with the country’s commitments in fighting the impact of climate change.
“We believe that this partnership is our contribution in realizing the Philippines’ commitments in the Conference of Parties (COP) through concrete actions and catalyzing the institution of climate justice,” Pulido said.
PEMC has been supportive of the adoption of sustainable energy development strategies, which include the establishment of the Renewable Energy Market, pursuant to the provisions of the Renewable Energy Act of 2008 and the implementation of preferential dispatch in the Wholesale Electricity Spot Market (WESM) for variable and emerging renewable energy plants.
The PEMC was incorporated in 2003 as a private non-stock, non-profit corporation upon the initiative of the Department of Energy (DOE) to oversee the WESM.
It served a dual purpose of being the governing body and autonomous group market operator for over a decade before turning over the operations of the market to the Independent Electricity Market Operator of the Philippines in September 2018.