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Sunday, June 16, 2024

ERC halts WESM operations after NGCP issues red alerts

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The Energy Regulatory Commission (ERC) suspended the operations of the Wholesale Electricity Spot Market (WESM) starting at trading intervals 1:05 PM in the Luzon Grid and 2:05 PM in the Visayas Grid with the imposition of the red alert status by the National Grid Corp. of the Philippines (NGCP).

This is pursuant to ERC Order on Case No. 2024-017 MC dated April 30, 2024 to mitigate the adverse impact of the red alerts to consumers.

The operations of the WESM, the trading floor of electricity, shall remain suspended until issuance of the notice of market resumption by the ERC.

“The conditions set out in our Order dated 30 April 2024 have been met. The suspension follows the issuance by the System Operator of Red Alert notice for Luzon and Visayas, noting the generation deficiency in said grids,” ERC chairperson Monalisa Dimalanta said.

A red alert was issued in the Luzon grid from 1 pm to 4 pm and 6 pm to 10 pm today while a yellow alert was declared from 12 noon to 1 pm, 4 pm to 6 pm, and 10 pm to 12 midnight.

A red alert was also issued in the Visayas grid from 2 pm to 4 pm and 6 pm to 7 pm, while a yellow alert was issued from 12 noon to 2 pm, 4 pm to 6 pm, and 7 pm to 10 pm.

Meanwhile, the Department of Energy (DOE) is closely monitoring and coordinating with the NGCP, generation companies, and distribution utilities to ensure the availability of power supply in meeting the demand in view of the declaration of red and yellow alert status in both grids today.

“Red and yellow alerts need not result in actual power interruptions if the power demand can be correspondingly reduced to respond to the decrease in power supply,” Energy Secretary Raphael Lotilla said.

The agency said supply from hydroelectric power plants in Luzon are still constrained. It called on the other generation plants that are on forced outage to ensure that these facilities are back online as soon as possible.

The DOE also said the tight power supply conditions have persisted due to the sustained high peak demands in both the Luzon and Visayas grids.

According to forecasts from the Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA), certain areas continue to experience extreme temperatures and high heat indices.

The actual peak energy demand for Luzon has surpassed forecasts in this El Niño year.

The peak demand reached 14,016 megawatts on April 24, higher than the forecasted peak demand for the year of 13,917 MW.

The DOE said there is a strong correlation of 93 percent between peak demand and heat index in Luzon.

“With the PAGASA projection of the heat index remaining elevated in select areas, the peak demand will likely remain above forecasted levels throughout the remainder of May,” the agency said.

The DOE enjoined all distribution utilities and electric cooperatives to be ready to activate their interruptible load program (ILP) to reduce the overall demand in the grid.

It said the Manila Electric Co. (Meralco) has already advised their ILP participants to prepare for possible de-loading.

“The Department acknowledges the proactive efforts of stakeholders in the power sector, particularly the role of the ILP in the Meralco franchise area. The DOE also encourages everyone to continue minimizing power use during critical hours to help mitigate the impact of supply shortages,” it said.

The DOE said these initiatives are crucial in preventing power interruptions and ensuring the stability of continued power supply.

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