Energy transition roadmap in the works

MANILA, Philippines — The Philippine Electricity Market Corp. (PEMC) is launching a study aimed at introducing mechanisms and enhancements in the country’s electricity market with the entry of energy storage systems.

The study is hinged on the partnership agreement between PEMC and the UN Office for Projects and Services (UNOPS) through the Southeast Asian Energy Transition Partnership (ETP) late last year.

“We recently concluded the signing of a memorandum of agreement (MOA) with UNOPS team about a month ago,” PEMC president Leonido Pulido III said during the Philippine Solar PV Energy Virtual Summit last Thursday.

Under the agreement, an energy transition roadmap will be established, focusing on introducing market mechanisms and enhancements promoting participation in the market of renewable and sustainable technologies while encouraging supply stability and diversification.

“The efforts under the ETP will be initiated through a study of the participation of battery and other energy storage systems in the electricity market which is a follow through of the wholesale electricity spot market (WESM) technical study conducted in 2018,” he said.

The PEMC is helping the ETP draft the terms of reference for the conduct of a selection process for the local-international consultants for battery energy storage.

“This study will bring in international experience in the country’s energy landscape by enabling energy storage systems to contribute in ensuring grid security and reliability despite the influx of cleaner energy technologies that are intermittent or variable,” Pulido said.

Once a consultant is hired, PEMC and UNOPS hope to conduct the study in the third or fourth quarter.

The 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.

The partnership is in accordance with the country’s commitments in fighting the impact of climate change.

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 WESM for variable and emerging renewable energy plants.

It was incorporated in 2003 as a private non-stock, non-profit corporation upon the initiative of the Department of Energy to oversee the WESM.

The PEMC 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.