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DOE pushing for power reserve market
The department said a reserve market is needed to prevent frequent power outages

MANILA, Philippines – The Department of Energy is pushing for the development of a power reserve market within the year to prevent frequent outages.

Energy Secretary Carlos Jericho Petilla said a reserve market is needed to satisfy the country’s power demand.

He said there’s a “frequency imbalance” in the country’s power grids because “there aren’t enough reserves.”

“That is why we’re pushing for a reserve market. We don’t have a reserve market right now,” Petilla said on the sidelines of the Platts Forum on Oil, Coal and Biofuels.

A reserve market houses additional power capacity that may be contracted by the grid operator for dispatch during emergencies. 

The National Grid Corporation of the Philippines (NGCP), operator of the country’s main transmission line, has the discretion to enter into contracts with power generators to boost its reserves.

However, Petilla said: “The monitoring of the performance of the grid is actually within the realm of ERC (Energy Regulatory Commission), even the penalties. There’s also a performance benchmark to see whether NGCP is complying with its franchise. This is also under ERC.”

In the meantime, Petilla said the country’s transmission line would be upgraded this year. “Some of the equipment are already 25 years old. They’re scheduled for upgrading.” –

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