A Circular has been issued by the
Department of Energy (DOE) setting forth the forward enhancements that it
requires the Wholesale Electricity Spot Market (WESM) in line with improving
service to industry participants – and subsequently, for it to have favorable
outcome to electricity consumers.
Under DOE Circular No. DC
2015-10-0015 signed by Energy Secretary Zenaida Y. Monsada, the department has
listed the various enhancements that will soon be enforced in the WESM’s design
and operations.
These include the removal of the
minimum stable loadings (PMin) for power generators being deemed as constraint
in the Market Dispatch Optimization Model (MDOM); and the introduction of
shorter trading and dispatch interval of five minutes.
The other prescription is on the
institutionalization of ex-ante pricing only “for every five-minute trading and
dispatch interval” in the spot market.
There is also a mandate of one-hour
settlement interval just “for settlement purposes based on weighted average of
the five-minute ex-ante prices,” automated pricing corrections; and mandatory
integration of distribution utilities’ sub-transmission network, which
materially affect dispatch schedules and prices in the WESM and its market
network model.
The spot market enhancements shall
also cover change in the “values and priorities of some of the constraint
violation coefficients (CVCs), including the corresponding values…taking into
consideration the imminent implementation of the WESM Reserve Market.”
The department similarly requires
the “imposition of WESM offer cap and floor for energy and reserve as
determined through joint study by the DOE, Energy Regulatory Commission (ERC) and
the PEMC (Philippine Electricity Market Corporation).”
The rest of the market improvements
shall delve with implementation of the hourly day-ahead projection with
sensitivities and hour-ahead dispatch; and the implementation of nodal-based
short-term demand forecasting.
There have also been enhancement
requirements being set for system operator National Grid Corporation of the
Philippines (NGCP) to keep pace with the mandated adjustments in the operations
of the country’s power spot market.
The energy department has emphasized
that the Circular will take effect 15 days “from its publication and shall
remain in effect until otherwise revoked.”
The power spot market is pursuing reinforcements
in its market management system (MMS) that is targeted for completion by the
year 2017.
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