DOE Declares the Interim Commercial Operations of the Renewable Energy Market

The Department of Energy (“DOE”) issued DOE Department Circular No. DC2022-06-0019 on 10 June 2022 to declare the commencement of the Renewable Energy Market (“REM”) Interim Commercial Operations (“I-COP”) and the governing rules therefor.

The REM I-COP will not involve any financial transactions until the DOE declares the Commercial Operations of the REM. Thus, the Renewable Energy Registrar (“RER”) can perform its functions except for any financial transactions until the declaration of the full Commercial Operations of the REM. 

Under the REM I-COP, the RER can perform all functions related to the following activities:

1. Registration and Participant Support:
   
   
   1. Continue accepting applications for REM registration by the REM Participants to achieve one hundred percent (100%) registration; and
   2. Ensure availability of REM information on the Market Information Website.
   
   
   
2. REM Awareness Activities:
   
   
   1. Conduct REM and Philippine Renewable Energy Market System (“PREMS”) training and lectures at least twice a month for the benefit of REM Participants, electricity end-users and/or other stakeholders; and
   2. Publish online materials for REM and PREMS on the Market Information Website for the REM.
   
   
   
3. Renewable Portfolio Standards (“RPS”) Mandates and Computations:
   
   
   1. Facilitate the uploading to the PREMS of gross sales data form Mandated Participants; and
   2. Compute the RPS requirements for a compliance period and issue preliminary and final statement reports to the Mandated Participants.
   
   
   
4. Renewable Energy Certificate (“REC”) Data Submission and Validation:
   
   
   1. Secure and process the data required for the full commercial operation of the REM from the Market Operator and National Transmission Corporation and upload the same to the PREMS;
   2. Facilitate the submission of data by Distribution Utilities with registered voluntary generators in the PREMS;
   3. Facilitate the validation of data by the REM Participants through submission of Data Validation Forms, meetings, and email exchanges;
   4. Address concerns and issues raised by REM Participants on their data prior to REC issuance; and
   5. Coordinate with the data provider for any issues and concerns on the REM data.
   
   
   
5. REC Issuance and Validation:
   
   
   1. Prepare and/or update, as necessary, the REC Manual Computation Template for the issued RECs under the Feed-In Tariff (“FIT”) mechanism for reference of and use by each REM participant in validation;
   2. Issue RECs under the FIT and Non-FIT Compliance Mechanisms;
   3. Address concerns and issues raised by REM Participants on their issued RECs; and
   4. Adjust the issued RECs, as necessary.
   
   
   
6. REC Reports Submission:
   
   
   1. Prepare and submit REM Reports to the DOE including the Annual REC Report required under the RPS Rules; and
   2. Prepare other related reports, as required by PEMC Management, REM Governance Committee (“RGC”), Philippine Electricity Market Corporation (“PEM”) Board, DOE and Energy Regulatory Commission (“ERC”).
   
   
   
7. Operability of the PREMS:
   
   
   1. Ensure 99.5% availability of the PREMS and PREMS public websites;
   2. Propose and implement PREMS enhancements, as deemed necessary and approved by the DOE;
   3. Monitor the functioning of the PREMS and ensure that operational issues are immediately resolved; and
   4. Propose and implement PREMS public website enhancements, as deemed necessary and approved by the DOE.
   
   
   
8. Support Services to RGC:
   
   
   1. Provide technical and administrative support to the RGC;
   2. Facilitate regular meetings and other activities of the RGC;
   3. Facilitate the processing of the REM Rules and Manual change proposals;
   4. Monitor compliance of the REM participants;
   5. Conduct studies related to REM implementation and developments; and
   6. Monitor and report the completion of the items enumerated in the DOE-approved Readiness Checklist.
   
   
   
9. REM Transaction Fees:
   
   
   1. Determine the market transaction fees and file the same to the ERC for approval.

Guidelines on the RPS Compliance

While Compliance Year 1 of the RPS Off-Grid Rules is suspended until further notice, Compliance Year 1 of the RPS On-Grid Rules shall remain Year 2020. RECs shall be issued by the RE Registrar corresponding to the metered generation of RE Facilities eligible for RPS compliance starting 2018 and onwards. RECs shall be valid for three (3) years from the date of issuance, regardless of the date the energy component was generated.

Upon recommendation of the RPSCT, the DOE may, in lieu of suspending compliance of a Mandated Participant, allow such Mandated Participant to carry-over the compliance shortfall for a period of three (3) years under any of the following conditions based on Section 25 of the RPS On-Grid Rules:

1. Inadequate supply of the Eligible RE Facilities to meet the minimum annual RPS requirements;
2. Inadequate supply of RECs to meet the minimum annual RPS requirements;
3. Unavailable capacity at both the transmission and relevant distribution network to transport the power produced by the Eligible RE Facilities to the grid;
4. Occurrence or existence of a force majeure event affecting or preventing a Mandated Participant from complying with the minimum annual RPS Requirements, as the case may be, and that it exerted all efforts to comply therewith; or 
5. Such other consideration or condition, economic or otherwise, which is outside the control of a Mandated Participant as may be determined by the RPSCT.

 A Mandated Participant needs to show, through clear and convincing proof, that the reason for its anticipated non-compliance is beyond its control and that it exerted all efforts to comply therewith.