Manila Bulletinby Myrna VelascoSeptember 25, 2013
An accelerated timeline was laid down by Energy Secretary Carlos Jericho L. Petilla for the establishment of a reserve market – not by year-end but possibly a date earlier than that.
He disclosed that he will be meeting with the Energy Regulatory Commission (ERC) by the end of this month to discuss the remaining submissions and other documentary requirements that the Philippine Electricity Market Corporation (PEMC) must comply with to finally wheel into motion the setting up of the reserve market. The energy secretary is the chair of the Philippine Electricity Market (PEM) Board.
“By September 30, we will have a meeting with the ERC to discuss remaining issues on the regulatory framework for the reserve market. I cannot give details for now but I have already set a timeline (for PEMC) as to when I would want it done,” Petilla said.
PEMC President Melinda L. Ocampo confirmed that the energy chief indeed gave a specific date on the targeted launch of the reserve market, “and it’s a schedule that almost made us fall from our chairs… he wants it done soon, so we have to deliver.”
The reserve market sets a trading platform for the offers of ancillary services (AS) requirement of the National Grid Corporation of the Philippines (NGCP) so it can ensure quality, as well as security and reliability of the power system.
Based on PEMC’s plan, the AS capacities that may be traded in the market will cover: Frequency regulating reserve, contingency as well as dispatchable reserves.
For reactive power support and black start services, Ocampo said these are excluded, hence, they must still be contracted by system operator NGCP.
The establishment of the reserve market is already integrated in the existing algorithm of the Wholesale Electricity Spot Market (WESM); although Ocampo noted that some adjustments will have to be done in its market network model.
Department of Energy (DOE) director Mylene Capongcol emphasized that prior to the commercial operations of the reserve market, certification of AS provider power plants must first be accomplished.
“We are already preparing the protocols for testing and certification of power plants which can qualify for trading into the reserve market. If they fail in the testing and qualification process, they cannot bid their capacities for AS,” she stressed.
That, plus the regulatory approval on the AS trading process flow and cost recovery schemes are among the remaining works that the DOE, ERC and PEMC will have to work on for the envisioned marketplace of power system reserves. source
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