by Myrna Velasco October 25, 2016
The new design of the trading
platform of the Wholesale Electricity Spot Market (WESM) will expectedly
improve efficiencies in the buying and selling of power commodity and will
similarly bring the maturity of the deregulated electricity sector to higher
notches.
One of the key features of the
WESM’s new market management system (NMMS) will be the shortened dispatch
interval – that was originally from one hour to just five minutes, parallel to
practice in more mature jurisdictions, such as Australia.
With that, WESM operator Philippine
Electricity Market Corporation (PEMC) noted that inter-hour deviations and
imbalances in power trading would be lessened.
Additionally, the system improvement
calls for a “single pricing mechanism as a result of the shortened dispatch
interval that will no longer require ex-post runs.” Prior to the changes, WESM
pricing had been anchored both on ex-ante (based on forecast) and ex-post
(actual outcome) pricing schemes.
PEMC added that there would also be
“automatic pricing re-runs that will yield to availability of prices in
real-time.”
For gate closure on price and volume
offers, this shall also be reduced from one hour to just 30 minutes or less,
purportedly to provide trading participants flexibility in managing risks for
unplanned events.
And with the planned setting up of
the reserve or ancillary services market, co-optimization of resources will be
pursued, along with that of energy offers.
The live run on the new trading
platform is expected around June next year, the timeline set by German firm
Siemens, the contractor of PEMC for the project.
PEMC President Melinda L. Ocampo
said these trading platform reinforcements in the WESM design and operations
were based on a study previously commissioned by the Department of Energy.
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