The Philippines starts trading in renewable energy certificates

It was announced that trading in renewable energy certificates (RECs) began in the Philippines from December 26, 2024. This is based on “Department Circular No. 2024-12-0031: Declaration of the Full Commercial Operations of the Renewable Energy Market”, and the platform for trading RECs will be provided by the Renewable Energy Market (REM). According to the announcement by the Department of Energy(DOE) of the Philippines, as of December 2024, it is expected that approximately 285 power producers, power distribution companies, end users, etc. have been registered with the REM.

About Renewable Energy Certificates (RECs)

RECs are certificates issued for each megawatt-hour (MWh) of electricity generated by eligible renewable energy facilities such as solar, wind, hydro, geothermal, and biomass. In the Philippines, they are being introduced as an important means of achieving the targets set by the country’s Renewable Portfolio Standards (RPS) system.

The RPS system in the Philippines

The RPS is a system that obliges electricity providers to use a certain amount or more of renewable energy sources in order to promote the introduction of renewable energy, and in the Philippines, participation is obligatory for distribution utilities (DU) etc., and the target has been set to supply 11.4% of total electricity demand with renewable energy in 2024.

The original media release from Department of Energy of the Philippines can be viewed at the following URL.
https://doe.gov.ph/press-releases/rec-trading-starts-26-december-2024-full-operationalization-rem

Department of Energy Circular 31 of 2024 (DC2024-12-0031) can be downloaded from the following.
https://www.wesm.ph/downloads/download/TWFya2V0IFJlcG9ydHM=/MzM3Mg==

For more information about REM, please see the following.
https://www.wesm.ph/market-development/re-market