A Renewable Energy Certificate (REC) represents 1 MWh of power generated by eligible renewable energy power generation facilities. It is an instrument used to facilitate Mandated Participants to comply with their Renewable Portfolio Standard (RPS) obligations.
- Validity period: Up to three years
- Issuing body: Renewable Energy Register (RER)
- Issuing region: The Philippines
- Number of certificates issued: Official data unavailable
- Calculation method: Calculate the power generation from the power generation side and issue the certificate
- Tracking unit: Renewable Energy Register (RER)
Every 1 MWh of green power generated by a renewable energy generator can be issued a REC after the eligibility is confirmed by the Renewable Energy Register (RER). Renewable energy generators under the Feed-in Tariff (FiT) can also apply for a REC.
Mandated Participants prove their compliance of RPS requirements through surrendering RECs, which cannot be traded once they are retired.
RECs are traded exclusively through the Renewable Energy Market (REM) established by Philippine Electricity Market Corporation (PEMC).
All trading participants can use the bulletin board of the renewable energy market as a place to publish information, issue certificates for sale or make a purchase request. All participants can coordinate the sale or purchase of certificates and settle transactions. Finally, the participants submit the transaction report to the RER, which transfers RECs to purchasers.
Every trading participant in the market can transfer RECs to the account of another participant and is required to disclose the price and number of certificates of each transfer.
Since the official price is not made public, the market price can be negotiated by participants. The price cap is determined by the Department of Energy (DoE) and approved by the Energy Regulatory Commission (ERC).