Trial runs for the integration of the Mindanao grid into the wholesale electricity spot market, or WESM, have started, with power stakeholders joining in end-to-end testing of all interfaces and systems that will involve simulations of all processes such as registration, bid submission, pricing and scheduling and settlement
Philippine Electricity Market Corp., operator of the WESM, said in a statement around 41 Mindanao participants participated in the trial operations program as of press time.
WESM is a centralized venue for buyers and sellers to trade electricity as a commodity where its prices are based on actual demand and supply.
The participants include National Grid Corporation of the Philippines as the system operator and metering services provider, generation companies, distribution utilities, and grid-connected customers.
The trial operations program signals the start of implementing test cases of a market-based mechanism for the efficient scheduling, dispatch and settlement of energy withdrawal and injections in the Mindanao grid.
Mindanao currently has an excess generation supply starting in 2016 with the entry of 748 megawatts of new capacity, which is expected to increase further by 1,260 MW until 2018.
The trial runs are expected to last for three months.
“PEMC as the designated market operator is committed in ensuring the readiness of the personnel and interfaces of our Mindanao participants to ensure a functional electricity market working in raising the competition and transparency in the power industry,” said PEMC president Melinda Ocampo.
Several capacity-building activities are also in the offing parallel to the trial runs to ensure the readiness of participants prior to the commercial operations and integration of Mindanao into the WESM.