Start of WESM in Mindanao expected to take some time

Business World Online

Posted on 11:07 PM, December 19, 2010

THE WHOLESALE Electricity Spot Market (WESM) may finally start commercial operations in the Visayas this Dec. 26, but it will take some more time to establish the market in Mindanao, the head of the Energy department told reporters late last week.

Much depends on how fast Mindanao can build up capacity, Energy Secretary Jose Rene D. Almendras said. "There should be enough reserves," he stressed.

Mindanao, which had suffered a crippling power deficiency amid the dry spell that lasted the first half, still has unstable power reserves. A check with the National Grid Corporation of the Philippines showed the entire island had 204 megawatts (MW) in reserve yesterday -- Sunday has low power demand -- but this is expected to dip to about 122 MW today.

Mr. Almendras said much depends on the coal-fired power plants that have been lined up for the island. He had said there will be 300 MW-400 MW of coal fired capacity in Mindanao by 2014.

Both the government and business sectors have cited the need to wean Mindanao away from hydroelectric power, on which the island depends for more than half of its electricity needs but which had been hit by the dry spell in the first half.

"Maybe, when the coal-fired plants enter [sic], we can shift the baseload of hydroelectricity to ancillary so there is ancillary power. We may start WESM when these coal plants come in," said Mr. Almendras.

He added that the department is also considering variants of the spot market for Mindanao. "We don’t think we can implement WESM in its full form in Mindanao, so we’re trying to pick what is needed to establish a semi-dynamic spot market in Mindanao. It can be supply bidding or nomination format, we’re studying all sorts." -- ENJD