Philippines’ Renewable Energy Market Set to Fully Launch by December

The Philippines’ renewable energy market (REM) is expected to be fully operational by December, according to the Independent Electricity Market Operator of the Philippines (IEMOP). This market aims to boost renewable energy adoption and support the country’s shift toward cleaner power.

Arjon Valencia, IEMOP’s corporate planning and communications manager, shared that REM will be a trading platform for renewable energy certificates (RECs), which represent power generated from renewable sources. These certificates help industry players meet required renewable energy quotas for their electricity sales.

The Department of Energy (DOE) initially established the REM’s framework in 2022, and interim operations began in August of that year under the Philippine Electricity Market Corp. (PEMC). Once fully launched, IEMOP will assume management of REM from PEMC.

“The REM facilitates compliance for mandated participants—electric cooperatives, distribution utilities, and retail suppliers—requiring them to source a portion of their electricity from renewables, measured by RE certificates,” Valencia explained. Industry players are currently mandated to meet 11% of their electricity sales from renewable sources, with the goal increasing to 35% by 2030.

The Marcos administration has actively encouraged private sector investment in renewable energy projects to help increase renewables’ share of the power mix, which currently stands at 22%.