WESM may be launched in Mindanao

MANILA, Philippines - With the launch of the wholesale electricity spot market (WESM) in the Visayas grid, the Department of Energy (DOE) may start looking at putting the same market in Mindanao, a top DOE official said.

Energy Secretary Jose Rene Almendras, however, said the electricity market in Mindanao would not happen until after supply is sufficient in the province.

“We will wait until the ancillary production levels will improve. There should be enough reserves. If the coal-fired power plants come in, there may be a shift from baseload hydro to ancillary so you have ancillary,” he said.

At present, he said the DOE is trying to look for way to dispatch power in the Mindanao area.

“We’re trying to look for a way to dispatch ancillary power in Mindanao in a fair pricing mechanism. It’s still way up in the air as to how exactly we’re gonna do it. That where ancillary price is set but if you go WESM, the price is not fixed,” Almendras said.

Almendras said the establishment of Mindanao WESM would hinge on the supply and demand situation.

“It is determined by supply and demand so the minute there’s enough ancillary services in Mindanao, because people are complaining that prices of ancillary are high, if we are able to build enough ancillary services in Mindanao, meaning you have diesel plants or you rehabilitate a lot of those diesel facilities, those are the most ideal for ancillary, so the only way you can dispatch that is by putting a market that will allow it,” he explained.

Almendras said that for the meantime, the DOE is studying a way to implement an electricity market for Mindanao.

“We don’t think we can implement wesm in its full form in Mindanao so were trying to pick what is needed to establish a semi dynamic spot market in Mindanao,” he said.