The Philippine Electricity Market Corporation (PEMC), the governance arm of Wholesale Electricity Spot Market (WESM), is preparing for the deployment of a new market infrastructure, after the Department of Energy’s (DOE) approval of changes to WESM rules implementing enhancements to WESM design and operations, the agency said.
The DOE policy directed changes in the salient features of market design such as shortening of the power dispatch interval from one hour to five minutes to lessen intra-hour deviations and imbalances; a single pricing mechanism as a result of the shortened dispatch interval that will no longer require ex-post runs; automatic pricing re-runs that will yield availability of prices in real-time; reduction of gate closure from one hour to thirty seconds or less to provide trading participants flexibility in managing risks for unplanned events; and co-optimized energy and reserves that will ensure optimal scheduling of energy and ancillary services.
“The DOE’s timely action shows confidence in the WESM in its role in encouraging efficiency and transparency in the power industry,” Philippine Electricity Market Corporation (PEMC) President Melinda L. Ocampo said on Tuesday.
Enhancements to the WESM design and operations were based on a WESM design study commissioned by the DOE and the results of the yearly independent audits of the system and procedures of the market operations. These enhancements will be reflected in several market manuals, operating procedures, and IT infrastructure of the WESM.
“We had initial coordination with the DOE, Energy Regulatory Commission (ERC), and the National Grid Corporation of the Philippines (NGCP) to ensure the seamless deployment of the enhanced market design and operations. We will be holding several information drives for our WESM members and relevant stakeholders to engage them in this market milestone,” said Ocampo.
The amended WESM rules will be used for the development of the new IT infrastructure and improvements in design, and will be in effect upon the approval of the market manuals by the DOE and pricing-related methodologies by the ERC.