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Friday, March 29, 2024

Mindanao WESM up despite conflict

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The Energy Department on Monday said the wholesale electricity spot market in Mindanao will be launched as scheduled next month despite the martial law imposed in the island and the armed conflict in Marawi City.

“Activities for WESM Mindanao will push through. The launching on June 26, 2017 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,” Energy Undersecretary Felix William Fuentebella said.

The department has been pushing for the establishment of the WESM in Mindanao by June 26 with the anticipated entry of some 1,208 megawatts of additional capacity in the island this year.

The department said in a statement around 782 MW was already added to the Mindanao grid last year, increasing the island’s power reserves.

“The launch date is not yet the start of the commercial operations. Commercial operations will only start when all readiness criteria are met,” Fuentebella said.

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He said the Marawi conflict ddid not affect the department’s WESM Mindanao schedules.

“However, we will subject the schedule for inputs by the members of the IATSEF (Inter-Agency Task Force on Securing Energy Facilities),” he said.

IATFSEF is composed of the department, Armed Forces of the Philippines, Philippine National Police and the other industry players.

The department has declared  the launch of the WESM in Mindanao and provided the transition guidelines effective June 26.

All electric power participants in Mindanao grid will be considered WESM participants and must submit and comply with the registration requirements as prescribed in the WESM rules and manuals not later than the launch date.

All embedded generators with an installed capacity of at least 5 MW, those with installed capacity below 5 MW that have contract outside their host distribution utility, or those that plan to sell to the WESM or supply power to the grid may register with the WESM on a voluntary basis

The government will launch WESM’s full commercial operations once the trial operations has been successfully implemented, the price determination methodology approved by Energy Regulatory Commission and the new market management system certified compliant to the rules.

Philippine Electricity Market Corp., operator of the WESM, meanwhile, will ensure the timely commercial operation of WESM in Mindanao and coordinate with the system operator and participants for the completion of the necessary procedures for its efficient operation.

The National Electrification Administration will provide guidance to the electric cooperatives during the transition to the new market environment and ensure timely compliance to the requisites for their registration in the WESM.

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