Philippines Launches Renewable Energy Certificates Trading

RECs represent one megawatt-hour of electricity produced from renewable source.

The Philippines has officially commenced trading of Renewable Energy Certificates (RECs) last month, marking the full commercial operation of the Renewable Energy Market (REM).

In a statement, the Department of Energy (DOE) said the certificates are market-based instruments representing one megawatt-hour of electricity generated from eligible renewable energy facilities, such as solar, wind, hydro, geothermal, and biomass. The REM provides a trading platform, helping participants meet their compliance obligations under the Renewable Portfolio Standards (RPS).

The annual RPS requirement for grid-connected areas increased from 1% to 2.5% in 2023. With renewable energy projected to supply 11.4% of the total power demand in 2024, the REM plays a crucial role in meeting these increased compliance targets, DOE said.

In 2023, the annual incremental RPS requirement for grid-connected areas was increased from 1% to 2.5%. For 2024, renewable energy is projected to supply 11.4% of the total power demand, underscoring the critical role of the REM in achieving compliance.

Around 285 participants, including generators, distribution utilities, and end-users, are expected to register with the REM.