DOE to launch spot market in Mindanao

By Lenie Lectura – May 29, 2017

from Business Mirror

THE Department of Energy (DOE) has issued a circular declaring the launch of a spot market in Mindanao next month.

“It has been signed and published.  The launch is on June 26,” Energy Secretary Alfonso G. Cusi said in a text message.

“The DOE hereby declares the launch of WESM [Wholesale Electricity Spot Market] in the Mindanao Grid effective June 26 to provide sufficient time for the Market Operator [MO], System Operator and WESM participants to prepare and familiarize themselves in WESM operations,” DOE Department Circular 2017-005-0009 stated.

“Activities for WESM Mindanao will push through. The launching on June 26 triggers the start of the trial operations period. This will aid us in determining the readiness of the trading participants including the system operator and the market operator,” DOE Undersecretary Felix William B. Fuentebella said.

Upon effectivity of the circular, all electric-power industry participants in the Mindanao grid shall be considered WESM participants and shall submit and comply with the registration requirements as prescribed in the WESM rules and Market Manuals, no later than the launch date.

Fuentebella said the launch date is not yet the state of the commercial operations.

The agency said the start of WESM Mindanao’s commercial operations will be declared by the DOE when the following criteria are met:

  • All systems and procedures needed in operating the spot market must be put in place;
  • The trial operations program should be completed;
  • The forecasting, scheduling, dispatch, pricing, metering and settlement processes of the WESM should be fully operational in the Mindanao grid;
  • Training programs shall have been conducted for the WESM Mindanao trading participants;
  • Energy Regulatory Commission  approval must be secured for the price determination methodology; and
  • The Market Dispatch Optimization Model must be certified by an independent auditor.

The DOE has tasked the Philippine Electricity Market Corp., the country’s power spot- market operator, to submit a certification on the compliance to the criteria within three months from the launch date.