MANILA -Full commercial operations of the power reserve market may start on Dec. 26, the Department of Energy (DOE) said, as the market operator finalizes preparations for what is seen as another way to ensure stable and reliable electricity supply across the country.
In a draft circular published earlier this week, the DOE said the Independent Electricity Market Operator of the Philippines (Iemop) must conduct final preparations and limited live dispatch operations of the reserve market from Sept. 26 to Dec. 25.
“During this period, the market operator, in coordination with the government arm and the system operator, and all trading participants, shall ensure the completion of all requirements for the full commercial operations,” the DOE said in its draft policy.
READ: Trial run for power reserve market begins
Iemop is the operator of the Wholesale Electricity Spot Market (WESM), the country’s power trading floor. National Grid Corporation of the Philippines (NGCP), meanwhile, serves as the system operator.
Under WESM rules, NGCP is mandated to provide adequate ancillary services in each region by entering into contracts with service providers or purchasing from the reserve market. The reserve market is crucial in ensuring supply availability in cases of power interruptions or power plant outages.
While the Energy Regulatory Commission (ERC) has yet to issue its approval of the price determination methodology (PDM), which specifies the dispatch schedules in the market, Iemop began trial operations on June 26, as ordered by the DOE.
The trial operations are expected to run until Sept. 25, which is also the deadline for ancillary service providers to submit their registration on the reserve market, the DOE said.
Last week, the ERC granted interim relief on the application of Iemop and Philippine Electricity Market Corp. for the PDM, but clarified that this was only a preliminary approval, “pending collection of more data from applicants on their operations in order for ERC to have a final determination of the application.”
ERC chair Monalisa Dimalanta previously explained that the reserve market would help determine the “actual amount of power reserves we have, as well as how much reserves we will need to prevent blackouts.” She added that it would likewise entice investors to prioritize funding for the construction of additional power plants if there is minimal trade observed in the market.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
