MANILA, Philippines – An energy official said the first renewable energy market in the country would likely be up by 2012 or 2013.
This would help ease the inclusion of electricity sourced from wind, solar, ocean, run-of-river, hydropower, and biomass in the portfolio mix of industry players.
The law on renewable energy requires electricity suppliers to source an agreed portion of their energy supply from eligible RE sources.
Energy undersecretary Josefina Patricia Asirit said they have been coordinating with the United States Agency for International Development (USAID) and the World Bank to respectively conduct a study to provide a roadmap and design for the renewable market (RE).
Asiri said that, based on initial studies, they might not be creating a new market for RE market but would only include it as another commodity to be traded at the existing wholesale electricity spot market (WESM), where electricity produced by generating companies is centrally traded like any other commodity.
A trading market for RE sources meets the requirements of the RE Act, which sets a Renewable Portfolio Standards (RPS), a market-based policy that aims to contribute to the growth of the renewable energy industry by diversifying energy supply and help address environmental concerns of the country by reducing greenhouse gas emissions.
Asiri pointed out that the setting up of the RE market should coincide and be consistent with the RPS rules, which would go through consultation with stakeholders before these are published before end-2011.
The RPS rules should determine the fixed tariff to be paid to electricity produced from each type of emerging renewable energy and the mandated number of years for the application of these rates.
In an earlier report by the DOE, the RE market is envisioned to become a venue for issuance, trading and monitoring of RE certificates to comply with the RPS.
There would also be the priority purchase and transmission of, and payment for, such electricity by the grid system operators. – Rappler.com