The Wholesale Electricity Spot Market in Mindanao started commercial operations on Thursday, according to the Department of Energy.
It said in an advisory the Independent Electricity Market Operator of the Philippines would oversee the operations of WESM Mindanao.
Similar to its function for the Luzon and Visayas grids, WESM would be the venue for efficient scheduling, dispatch and settlement of energy withdrawal and injections in the Mindanao grid.
The DOE said IEMOP would use its two main systems—the Market Management System and the Central Registration and Settlement System—for WESM Mindanao.
The MMS will determine the optimal dispatch schedule of generators and customers in the grid, including their respective locational prices. The CRSS will facilitate the registration of market participants and the settlement of WESM transactions.
Energy Secretary Raphael Lotilla issued Department Circular No. DC 2022-12-0039 in December last year to announce the start of WESM Mindanao’s commercial operations on Jan. 26.
The department said the operations of WESM Mindanao and the Mindanao-Visayas Interconnection Project were expected to improve the reliability of power supply not only in the Mindanao grid, but also in the Luzon and Visayas grids.
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 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 for the commercial operations of WESM Mindanao.