As the eventual launch of the Enhanced WESM Design and Operations (EWDO) draws near, the Independent Electricity Market Operator of the Philippines (IEMOP) continues to conduct activities that are aimed to equip the market participants for the five-minute market. Through its recently concluded Market Participants’ Update (MPU), the Market Operator apprised the participants on the remaining activities for the highly anticipated implementation of WESM in Mindanao and Go-Live of the Enhanced WESM Design and Operations prior to its target launch on 26 June 2021.
With the theme “Gear Up: Get Ready for the Switch”, the MPU provided the protocols for the conduct of the Limited Live Dispatch Operations (LLDO) for Luzon, Visayas, and Mindanao which is set to commence on 29 May 2021. The conduct of the LLDO is the final step prior to the commercial operations of WESM Mindanao and EWDO. This effort is also in line with the Market Operator’s pursuit to provide sustainable market solutions and services to its stakeholders and participants.
“We, at IEMOP, have also been taking the necessary measures to keep up with the global trends and to come up with innovative solutions that are geared towards service excellence and overall market efficiency,” IEMOP President and CEO Atty. Richard Nethercott emphasized.
During the MPU, Market Developments and its roadmap as well as updates on the WESM Compliance were discussed by speakers from IEMOP and the Philippine Electricity Market Corporation (PEMC) who joined the open forum to address the concerns and inquiries of the market participants.
The event was also attended by Assistant Secretary Redentor E. Delola of the Department of Energy who addressed the participants regarding the milestones and the other promising programs within the energy industry.
Market Operations Highlights
For the month of May, the Market Operator noted an increasing demand trend as warmer temperature prevails throughout the country. As the dry season ensues, average demand increased from 10,120 MW from the previous month to 11,091 MW this May.
The abrupt increase in demand was coupled by lower supply levels due to generator outages. These resulted to occurrences of high market prices – averaging around P7.72/kWh. Given the sustained high prices, the Secondary Price Cap was imposed on 04-07 May and 20-22 May 2021. The Secondary Price Cap is a price-mitigating mechanism designed to limit the persistent high market prices.
Likewise, IEMOP observed an increase in the volume of customer transactions for the first four months of the year which amounted to 25,129 GWh or an increase of 3% from the previous year’s 24,388 GWh. Furthermore, generation from coal power plants continue to dominate the generation mix which totaled to around 13,885 GWh or 52.7%.
The Market Operator also noted that there are a total of 278 members (138 Generation Companies, 71 Electric Cooperatives, 49 Directly-Connected Customers, and 20 Private Distribution Utilities and Local Government Utilities) who are currently registered in the WESM. As the Central Registration Body (CRB) for Retail Competition and Open Access (RCOA), IEMOP handles all the coordination with the 1,791 contestable customers (CCs), to date.
