RE Market Goes Into Interim Commercial Operations

Under the Renewable Energy Act (Republic Act No. 9513) (the "RE Act"), it is a policy of the state to increase the utilization of renewable energy ("RE") by institutionalizing the development of national and local capabilities in the use of RE systems. Towards this end, the RE Act instituted the Renewable Portfolio Standards ("RPS"), a policy mechanism that obliges electric power participant such as generation companies, distribution utilities and retail electricity suppliers (referred to as "Mandated Participants") to source or produce a fraction of their electricity requirements from eligible RE resources.

To facilitate Mandated Participants' compliance with the RPS, the RE Act mandated the creation of the renewable energy market ("REM"). The REM is the venue for the trading of Renewable Energy Certificates ("RECs") equivalent to an amount of power generated from RE resources. Under the REM, the Renewable Energy Registrar ("RER") will issue to eligible trading