NGCP was instrumental in WESM launch in Mindanao

By Lenie Lectura – August 17, 2017

from Business MIrror

THE National Grid Corp. of the Philippines (NGCP) said on Thursday it was instrumental in the successful launch of the Wholesale Electricity Spot Market (WESM) in Mindanao.

“NGCP’s biggest and most crucial contribution is the development of the Interim Mindanao Dispatch Protocol [IMDP]. This was implemented during the transitory period in preparation for the start of WESM’s commercial operations in Mindanao,” the grid operator said.

As part of the IMDP, NGCP developed a web site for generators and load customers to submit their available supply and forecasted demand. After collating the submitted data, the web site enables NGCP to publish the demand profiles and Generation-to-Maintain Matrix, a summary of the daily capacity allocation per hour for each individual, for the reference and use of players in the Mindanao electricity market.

The web site also allows the NGCP to monitor the actual load per customer in real time, which provides NGCP a better understanding of how to manage the balance of supply and demand in order to ensure reliable delivery of power-transmission services in the area.

NGCP also handled the installation of metering software and hardware to the market participants. At present, NGCP and PEMC continue to closely coordinate and share data to ensure the smooth implementation of the new system.

In recent years, the Mindanao grid suffered rotating brownouts due to generation deficiency. However, the entry of large generators significantly increased supply, now creating a surplus and prompting the extension of WESM operations to Mindanao. With NGCP’s support, WESM Mindanao was officially launched in June.

“From its inception to its launch, we are very proud to be a part of this major development in Mindanao power operations. In line with our mandate to provide the best transmission services, we are always eager to support initiatives which will improve the grid’s power situation,” the NGCP said.

The NGCP is a Filipino-led, privately owned company in charge of operating, maintaining and developing the country’s power grid, led by majority shareholders Henry Sy Jr. and Robert Coyiuto Jr.

The Electric Power Industry Reform Act (Epira) of 2001 mandated the Department of Energy (DOE) to establish WESM as a venue for trading electricity as a commodity.

WESM started commercial operations in the Luzon grid in June 2006 and in December of 2010 in the Visayas grid, while the intricacies of the Mindanao power industry delayed the establishment of WESM Mindanao.

WESM Mindanao is being operated by the PEMC, a non-stock, nonprofit corporation which also operates the Luzon and the Visayas WESMs.

“WESM Mindanao will enable a transparent and fair mechanism to bring in more competition, more investors and a sustainable business climate that will eventually redound to empowering consumers from Mindanao of their power of choice,” Energy Secretary Alfonso G. Cusi said.