Mindanao power spot market starts operations

MANILA, Philippines — The wholesale electricity spot market (WESM) in Mindanao has finally started operations after encountering numerous delays.

The Department of Energy (DOE) announced that the commercial operations of the WESM in the Mindanao grid commenced yesterday.

According to the DOE,  the Independent Electricity Market Operator of the Philippines will oversee the market operations of WESM Mindanao using its two main systems – the market management system (MMS) and the central registration and settlement system (CRSS).

The MMS will determine the optimal dispatch schedule of all generators and customers in the grid, including their respective locational prices.

The CRSS, meanwhile, will facilitate the registration of market participants and the settlement of WESM transactions.

The launch of the WESM in Mindanao has been pushed back in the past after encountering numerous challenges.

Commercial operations were originally eyed to start on Dec. 26, 2021.

The WESM is a venue where electricity can be traded as a commodity.

Similar to its function for the Luzon and Visayas grids, the WESM in Mindanao is seen as a venue for efficient scheduling, dispatch, and settlement of energy withdrawal and injections in the Mindanao grid.

Having WESM in Mindanao is seen beneficial in the region and is expected to open a lot of opportunities.

The DOE earlier said the reliability of electric power supply in the country is expected to improve with the commercial operation of the WESM Mindanao and the completion of the Mindanao-Visayas Interconnection Project (MVIP) in the first quarter.

The agency  expects the MVIP to be completed by March 2023, the commercial operation of which necessitates the implementation of WESM in Mindanao to allow the efficient transfer and settlement of electricity exchanges through the Mindanao-Visayas interconnection.

The MVIP,  which is being constructed by the National Grid Corp. of the Philippines (NGCP), will connect the Visayas and Mindanao grids through a high-voltage direct current system.

Once completed, it will realize a one Philippine grid that will allow a power exchange of initial 450-megawatt capacity.