advisories & notices

PEMC inks agreement with Energy Transition Partners

The Philippine Electricity Market Corporation (PEMC) and the United Nations Office for Project Services (UNOPS) through the Southeast Asian Energy Transition Partnership (ETP) held an online signing of a Partnership Agreement on 25 November 2021 that will usher in the implementation of an energy transition roadmap focused on introducing market mechanisms and enhancements promoting participation in the market of renewable and sustainable technologies while encouraging supply stability and diversification.

“The Partnership Agreement will strengthen PEMC’s governance functions and broaden its contribution to the country’s energy transition initiative, through the capacity-building and the technical assistance to be rendered by the ETP, which is to be initiated through the study about the participation in the electricity market of battery and other energy storage systems,” said PEMC President Atty. Leonido J. Pulido III, a known electric vehicle advocate during his stint with the Department of Energy.

ETP is a platform for governments, philanthropies, and partner countries to accelerate energy transition in Southeast Asia by increasing the deployment of renewable energy, energy efficiency, and sustainable infrastructures as well as enhancing policy alignment with climate commitments and expanding knowledge and awareness of energy transition.

UNOPS Multi-Country Office Director Samina Kadwani and ETP Director Sirpa Jarvenpaa signed the agreement on behalf of the ETP while Atty. Pulido and Chief Governance Officer Atty. Elvin Hayes E. Nidea signed on behalf of PEMC.

“ETP is delighted to sign a pioneering Partnership Agreement with PEMC. Our partnership is timely and aims to set up a resilient Battery Energy Storage Market Mechanism providing competitive conditions for the battery storage services in the wholesale electricity spot market and thus de-risk renewable energy investments as a part of the Government’s efforts to dramatically increase variable renewable energy in the energy mix,” stated Director Jarvenpaa.

In attendance at the simple signing ceremony were representatives from the Department of Energy (DOE), Energy Regulatory Commission (ERC), and the Philippine Competition Commission (PCC).

“We believe that this partnership is our contribution in realizing the Philippines’ commitments in the Conference of Parties (COP) through concrete actions and catalyzing the institution of climate justice,” said Pulido.

PEMC has been supportive of the adoption of sustainable energy development strategies, which include the establishment of the Renewable Energy (RE) Market, pursuant to the provisions of the Renewable Energy Act of 2008 and the implementation of preferential dispatch in the Wholesale Electricity Spot Market (WESM) for variable and emerging renewable energy plants.

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WE ARE PEMC

The Philippine Electricity Market Corporation (PEMC) is a non-stock, non-profit corporation incorporated in November 2003 upon the initiative of the Department of Energy (DOE) with representatives from the various sectors of the electric power industry. The PEMC served as the autonomous group market operator and governing body of the Philippine Wholesale Electricity Spot Market (WESM) for over 10 years.

The WESM is a centralized venue for buyers and sellers to trade electricity as a commodity where its prices are determined based on actual use (demand) and availability (supply). It was created pursuant to Republic Act 9136, also known as the Electric Power Industry Reform Act (EPIRA) of 2001. The WESM began commercial operations in Luzon in June 2006 and in the Visayas in December 2010.

OUR ROLE

The EPIRA mandated the formation of an independent entity to which the market operator functions, assets, and liabilities will be transferred. With this, the DOE, along with the electric power industry market participants, endorsed the transfer of the WESM operations from PEMC to the Independent Electricity Market Operator of the Philippines (IEMOP) on 26 September 2018.

The PEMC remains as the governing body of the WESM primarily through the PEM Board of Directors and the WESM Governance Committees.

PEMC’s role is to remain steadfast and proactive in its mission to ensure that there is POWER, EFFICIENCY, MARKET, and COMPETITION in the energy industry through the effective and efficient governance of the WESM.