The Independent Electricity Market Operator of the Philippines, which runs the Wholesale Electricity Spot Market, said Thursday it is ensuring market participants’ readiness for the launch of the Mindanao electricity spot market on Jan. 26, 2023.
IEMOP said it is conducting focus group discussions with Mindanao participants and the energy stakeholders to discuss the provisions of the Department of Energy Circular 2022-12-0039 and the activities leading to the commercial operations of WESM in the region.
It said this is a part of the preparations for the commercial launch of WESM Mindanao.
The first FGD with grid-connected generators was conducted on Jan. 6 and Jan. 12, 2023. Other batches of the FGDs for the other trading participants would be held until Jan. 13.
Energy Secretary Raphael Lotilla signed DC 2022-12-0039 requiring Mindanao electric power industry participants and entities to register as WESM members not later than Jan. 15, 2023.
“The commercial operation of WESM Mindanao and the MVIP [Mindanao Visayas Interconnection Project] is expected to improve the reliability of electric power supply not only in the Mindanao grid, but also in the Luzon and Visayas grids,” the circular said.
It said the MVIP was expected to be completed by March 2023, and its commercial operation would necessitate the implementation of WESM Mindanao to allow the efficient transfer of electricity exchanges.
The circular requires the market operator to facilitate registration in the WESM and authorize the disconnection of WESM participants and entities mandated to register, but are unable to comply with the rules.
The circular spells out the responsibilities of IEMOP, National Electrification Administration, Power Sector Assets and Liabilities Management Corp., Philippine Electricity Market Corp., and National Grid Corp. of the Philippines.
It mandates the IEMOP to ensure compliance of WESM Mindanao participants with the registration requirements and take action to address non-compliance.
The IEMOP should also ensure smooth transition and operation of the WESM Mindanao and the availability and applicability of all systems and procedures for the successful conduct of electricity trading in the Mindanao grid.
The PEMC will monitor and evaluate the implementation of the WESM Mindanao and recommend measures to address policy issues that may arise. It will also impose sanctions and penalties in accordance with the provisions of the circular.
NEA will provide assistance to electric cooperatives in the completion of their registration in the WESM and coordinate with relevant agencies to fulfill compliance of the ECs with the financial and technical requirements relative to the WESM registration.
It will assist the ECs, particularly those unable to post the necessary prudential requirements, in securing supply contracts and a direct WESM member counterparty.
NEA will also formulate and implement action plans to address the viability problems of ECs to ensure the continuous supply of electricity to member consumers.