DOE approves guidelines on power reserve dispatch scheme

MANILA, Philippines – The Department of Energy (DOE) has approved the guidelines in the scheduling and dispatch of reserve power capacities at the Wholesale Electricity Spot Market (WESM).

Through Department Circular No. 2014-12-0022, the DOE approved and adopted the WESM Market Manual on the Protocol for the Central Scheduling and Dispatch of Energy and Contracted Reserves.

“The central scheduling and dispatch of energy and contracted reserves would provide the DOE better monitoring of all available generation capacity in both energy and reserve, and provide more preparations to the participants for the eventual commercial operation of the WESM reserve market,” the circular stated.

It’s implementation, however, “shall immediately cease upon the Commercial Operation of the WESM Reserve Market or upon declaration of its cessation by the DOE.”

The protocol covers the Philippine Electricity Market Corporation, the National Grid Corporation of the Philippines, and its members.

“(They) shall continuously submit an assessment report to the DOE on its implementation of this protocol and the development of the WESM reserve market,” it added. 

As such, WESM’s trading participants are required to submit their generation and reserve offers in tune with the its timetable for an accurate calculation of reserve requirements.

The WESM reserve market provides back up power that could be tapped by the NGCP; as such, there is a need for the DOE to craft a protocol that “provides for the mechanism to centrally schedule all energy and reserve capacities” at the spot market.

Central scheduling refers to activities taken prior to the commercial launch date of the WESM reserve market for the purpose of central dispatch of energy and reserve categories traded in the WESM.

It intends to reflect the entire capacities in the WESM, including reserve capacities contracted by the NGCP, so that these can be centrally scheduled for either energy or reserve.

The commercial launch date of the WESM’s reserve market was supposed to be in March 2014 but got stalled pending regulatory approval.

WESM was created as response to the Electric Power Industry Reform Act of 2001. It sets the price of generation charges based on the available energy supply.

Disclosure of energy supply is deemed important because any articial shortage affects the price of the commodity.

(INFOGRAPHIC: How WESM affects your electricity bill)

At present, it engages with the Manila Electric Company, electric cooperatives in Luzon, private and state power generative firms, non-utility corporations, and energy suppliers for available energy supply. – Rappler.com