DOE mandates WESM registration of self-generating power assets

By Myrna M. Velasco – August 27, 2018, 10:00 PM
from Manila Bulletin

Department of Energy (DOE) logo

       Department of Energy (DOE) logo (MANILA BULLETIN)


Industries or business establishments with self-generating facilities (SGFs) and embedded generation (EG) will be mandated to register at the Wholesale Electricity Spot Market (WESM) based on the propounded policy of the Department of Energy.

The department, in a draft Circular, has stipulated that this in line with its mandate of ensuring reliable operations of the electricity system as well as invoking transparency in the scheduling of generators that are either directly or indirectly connected to the grid.

“EGs and SGFs are mandated to register to the WESM,” the DOE Circular has stated; and they are also required to cooperate with other relevant industry stakeholders, relative to concerns, such as “WESM-compliant remote terminal units (RTUs); metering facilities and communication links and their location relative to the connection point, market trading node and scheduling points.”

Such processes must also be in keeping with the frameworks set forth under the Philippine Grid Code, the WESM Rules and market manuals. It has been further stated that the embedded generators and self-gen assets registration at the WESM may be as “either scheduled or non-scheduled generation company pursuant to the WESM Rules.”

For embedded generators, the facilities required to register at the WESM are those with maximum stable load (or Pmax) of: 10 megawatts for Luzon grid; and 5.0MW each for Visayas and Mindanao grids.

Spot market registration shall also be applied to embedded generators with maximum stable loads “below regional thresholds that have a contract outside its host distribution utility, or intends to sell to the WESM; or inject power to the grid.”

EGs would refer to generating units that are indirectly connected to the grid through the system of a distribution utility.

Meanwhile, self-generating facilities are those that are owned and constructed by an end-user for its own consumption or internal use; but excluding those facilities for utilization by households, clinics, hospitals and other medical facilities.

In addition, the specified EGs and SGFs are directed to secure certificate of compliance (COC) pursuant to the licensing guidelines for such facilities.

All EGs and SGFs shall secure a Certificate of Compliance (COC) pursuant to existing guidelines on licensing of generation facilities, the department stressed.