The Energy Department is pushing for the establishment of the Wholesale Electricity Spot Market in Mindanao on June 26 in time for the entry of 1,208 megawatts of additional capacity in the grid.
The department said in a statement that 782 MW was already added to the Mindanao grid last year, increasing the region’s power reserves.
The department said despite the additional supply, power interruptions continued in Mindanao especially in the franchise areas of distribution utilities which did not have sufficient power supply agreements to cover their increasing demand for electricity.
It said power generation companies were hesitant to operate their plants without an approved supply contract or any compensation mechanism duly approved by the Energy Regulatory Commission.
“Thus, the establishment of the WESM will serve as the mechanism to efficiently tap the excess capacities in the area to avoid rotating brownouts and ensure 24-hours continuous electricity service,” the department said.
It said that given the excess in power generation capacity in Mindanao, the government was now undertaking preparatory activities for the launch of WESM in Mindanao.