Business World Online
Posted on June 18, 2013 10:43:57 PM
THE ENERGY department’s Interim Mindanao Electricity Market (IMEM) is expected to be launched in August as a pre-trial operation at a time when the island is projected to hit another deficit of about 100 megawatts (MW).
"We expect to have 150 MW to 200 MW available [for trade] by that time. We have enough resources to start IMEM," Mr. Jalocon told journalists on Tuesday.
The full operation of the Mindanao electricity market system will start in September, based on the timeline of the Philippine Electricity Market Corp. (PEMC), which operates the wholesale electricity spot market, or WESM, for Luzon and the Visayas.
The IMEM office will be set up in Cagayan de Oro City.
The idea of establishing the IMEM was floated during the Mindanao Power Summit last year, when President Benigno S. C. Aquino III asked the Energy department to create mechanisms that would augment power supply on the island.
The IMEM was conceptualized to provide an immediate venue for the transparent and efficient utilization of additional capacities to address Mindanao’s energy supply shortfall.
In the first half of this year, Mindanao has reached close to 500 MW deficiency, leading some areas such as Zamboanga City and General Santos City to suffer five to eight hours of blackouts a day.
Since last week, however, the grid’s power supply has been at a surplus. Based on the National Grid Corp. of the Philippines’ Web site, the Mindanao grid on Tuesday had a 164 MW surplus, with an estimated supply of 1,351 MW and demand of 1,187 MW.
Among the expected electricity sellers under the IMEM are some large companies that qualify under the interruptible loading program and a few electric cooperatives which have excess power. Examples are big shopping mall operators in Davao City that have their own power generator sets. These companies could sell their power to local electric cooperatives via the IMEM.
Davao City, however, has not been affected by the power deficiency in the main grid since its distribution utility has its own embedded power generator, thus making it easier for private companies to sell excess power.
Mr. Jalocon said registration among sellers and buyers is now taking place.
The IMEM manager said his group is just waiting for a tripartite group composed of the Energy department, PEMC, and the Energy Regulatory Commission to finalize the pricing schedule and the price cap.
The IMEM would have the same function as WESM and would also have its own governance committee "to monitor the market, and the enforcement and compliance officer who will investigate breaches to the rules," Mr. Jalocon said.
The establishment of IMEM will come when Mindanao is expected to again suffer a deficiency instead of the surplus it is enjoying now.
Romeo M. Montenegro, director for Investment Promotions, International Relations and Public Affairs of the Mindanao Development Authority, has said that the island will have at least 100 MW deficiency starting in August because the 200 MW from STEAG State Power, Inc., one of the biggest providers of electricity in Mindanao, will undergo maintenance work. The deficiency will last until the end of the year, he said.
Mr. Jalocan said that with the IMEM, Mindanao power cooperatives may augment their contracted power agreements with the National Power Corp. as well as with independent power providers. -- Darwin T. Wee source
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