Mindanao grid WESM integration trials begin

THE trial integration of the Mindanao grid into the wholesale electricity spot market ( WESM) has so far involved 41 participants, and a test of the system for three months is expected before commercial operations start.

Philippine Electricity Market Corp. ( PEMC), the governance arm of WESM said the trial operations signaled the start of implementing test cases of a market-based mechanism that is aimed at an eff icient scheduling, dispatch and settlement of energy withdrawal and injections in the Mindanao grid.

The trial run of the electricity spot market in Mindanao started on Monday, June 26, 2017. The grid had been projected to have an excess capacity of 748 megawatts ( MW) starting last year, which could increase by 1,260 MW until next year.

“PEMC as the designated Market Operator is committed to ensuring the readiness of the personnel and interfaces of our Mindanao participants to ensure a functional electricity market working in raising the competition and transparency in the power industry,” said PEMC President Melinda L. Ocampo.

During the trial integration, power grid operator National Grid Corp. of the Philippines, generation companies, distribution utilities and grid-connected customers will be involved in end-to-end testing of interfaces and systems. Included in the tests are simulations of processes such as registration, bid submission, pricing and scheduling, and settlement.

PEMC said “capacity- building ” activities have been set parallel to the trial operations to ensure the readiness of participants before full commercial operations.

These include the application of the Energy Regulatory Commission- approved methods for pricing and settlement of electricity transactions in the Mindanao grid, and the use of the market management system to arrive at dispatch schedules.

PEMC said the trial run coincides with the start of the live parallel operations of a new market management system in the Luzon and Visayas grids, which it described as a milestone in enhancing WESM.

But the agency said the results of the new system will not be used in the billing and settlements processes of actual transactions, and will not be financially binding.

Ms. Ocampo said the live parallel operation is a transition phase that seeks to evaluate the resulting prices and schedules, as well as assess the new system’s performance in a real-time environment. —