The Department of Energy (DoE) is optimistic that it will be able to establish the power reserve market within this year despite regulatory issues, and the agency even hoped that it can be finalized within this month.
In an interview with reporters during the Energy Forum held on Friday, Energy Secretary Jericho Petilla said that he is still hoping to finally establish the power reserve market regardless of some regulatory issues with the Energy Regulatory Commission (ERC).
“We [still]have to set a policy kasi hanggang ngayon ang ERC, wala pang approval sa reserve market [there’s still no approval with the ERC],” Petilla said, adding that the application for the reserve market was still actually filed in 2009.
According to Petilla, he will meet with the ERC in the next two weeks to discuss the implementation of the reserve market, adding that the commission is proposing to implement it in 2015, in contrast with his target to execute it this month.
“Ang target ko pa rin kung pwede makunan pa rin ng approval within the year [My target is to secure the approval within the year]. It is a slim chance but I’m hoping it will be approved,” he said.
Petilla said that it is necessary to implement it within the year in order to firm up the preparation for the forecasted tight supply of energy in the Luzon region.
In a text message to reporters, Melinda Ocampo, Philippine Electricity Market Corp. president, said that PEMC is still in the process of completing the requirements for the reserve market.
In July, Petilla said that the energy department was pushing for the establishment of the power reserve market in the country, as well as the importation of liquefied natural gas (LNG) this year.
Petilla then said the department is in the process of exploring possibilities on LNG importation. At the same time, he said that the department may finally come up with something regarding the delayed establishment of a power reserve market in the country.
According to him, there is frequency imbalance in the country’s grid, because there are not enough power reserves.
The deadline set by the DoE for the energy reserve market has been delayed by more than a year.