DOE sets start of demo for wholesale spot market

The Department of Energy (DOE) expects the demo market for the Wholesale Electricity Spot Market (WESM) to commence within this month.

Last February, the DOE awarded the demonstration market operation of WESM to OnLine Systems Ltd. (OSL), which will specifically provide for the software, hardware and consulting services for the system.

The demo market will run until the final WESM is put into place, which is targeted to commence in the third quarter of next year.

"The demo market is expected to result in clear rules for the WESM and at the same time prepare and educate all the industry participants for the operations of the final WESM," Energy Secretary Vincent S. Perez said.

Perez said the technical evaluation of the market management system (MMS) turnkey project, which will provide for the system that will be used in the final WESM, is ongoing.

He added the WESM project management consultancy services, on the other hand, is still undergoing evaluation by the Asian Development Bank (ADB).

The companies that have expressed interest for the MMS project include: ALSTOM, G.E. International Inc., ABB Inc., Union Fenosa Solutions, Logica, Siemens, Questronix Corp., China State Construction Engineering Corp., Ayala Systems Technology Inc., ePLDT Inc., Mitsubishi Corp. and BAP Inc.

For the consultancy services, the DOE has shortlisted five firms: Australian Power and Water/Transgrid, Marketplace Co. Ltd., On-Line Systems/Wise Technology, KEMA Consulting and EFRI.

The Electric Power Industry Reform Act (RA 9136), which restructures the power sector, mandates the establishment of the WESM. Once in place, WESM will empower consumers to choose their supplier of electricity with the main goal of purchasing the least cost of power.