THE Wholesale Electricity Spot Market (WESM), a trading platform for power industry players is targeted to be implemented in Mindanao on January 26, 2020.
WESM, a virtual venue where energy companies and power plants and the distribution utilities and electric cooperatives can trade buy and sell electricity, has only been operating in Luzon and Visayas.
The WESM market operator has Independent Electricity Market Operator in the Philippines (IEMOP) and the Philippine Electricity Market Corporation (PEMC) began training energy companies (ECs) and distribution utilities (DUs) in the Davao Region on the operation and processes WESM on Wednesday, November 13 at the Marco Polo Davao, Davao City.
They will also conduct a series of roadshows and roundtable discussions in Cagayan de Oro on November 19 to 21.
However, the group has observed fewer participations of the power industry players in the region during the ongoing trial operations.
“We are only seeing 30 percent participation on trial operations. It is very important that before you jump or proceed with commercial operations, you ensure that the participants are well-prepared, the dynamics and the processes of our market,” IEMOP corporate communications manager head Eric Nino U. Louis said in a media briefing at Marco Polo Hotel, Tuesday.
PEMC chief governance officer Rauf Tan said this does not mean the implementation of the energy market will be unsuccessful. Rather, it will only test if the system will work.
Since the buying and selling of power happens online, Tan said the one of the struggles they are trying to address for Mindanao is the internet connection.
“If you compare the status of the internet here in Mindanao versus in Luzon and Visayas medyo malaki ang problema (There is a big difference). That is one of the challenges,” he said.
IEMOP president and chief executive officer Jose Mari Bigornia said another obstacle that they are facing is on the introduction and familiarization of the WESM system to the DUs and the power companies to trade in the market.
“During the initial phase maglalabasan yung mga issue, technical man yan o sometimes familiarity lang. So dapat palagi tayong may nakahandang paliwanag lalo na pagdating sa settlement (Issues come out during the initial phase of implementation, either it is technical or just on familiarity. That is why we are always ready with explanations especially on the settlements),” he said.
“We were hoping that there will be more participation para yung mismong participants masubukan naman nila yung connectivity sa kanila, papano sila mag reinteract doon sa system, yun sana magandang masubukan nila (so that the participants will test internet connectivity in their area, how will they reinteract on the system. It is good that they try),” Tan said.
Louis said the roadshows are opportunities for the power industry players to be registered in the market and let them learn how to trade in the system such as selling their excess power as well as buying power to address their shortages, payment and settlement, and upload and download data.
He said currently, the DUs and ECs in Davao Region are starting to register in the system but the DUs have yet to complete the requirements, especially the metering service agreement (MSA) or metering installation registration forms (MIRF) which will be requested from the National Grid Corporation of the Philippines (NGCP).
Those who wanted to become a direct player of the WESM has also yet to secure the security deposit or the prudential requirement.
Six ECs have already complied with their requirements namely the Power Sector Assets and Liabilities Management Corporation (Psalm), Euro Hydro Power (Asia) Holdings, Inc., GNPower Kauswagan, AboitizPower subsidiaries Therma South Inc. and Hedcor Tudaya, and Alterpower Digos Solar,.
Louis said the NGCP has also registered as a customer.
Based on their data, the current capacity in Mindanao is 3,622.6 megawatts.
He said the WESM promotes competition among energy players which will lead to low cost of electricity to the consumers. This will also allow the energy companies to maximize their excess capacities and DUs find available supply in case of power shortages.