IEMOP: WESM Mindanao a success

THE Independent Electricity Market Operator of the Philippines (IEMOP) announced recently the successful first month of Wholesale Electricity Spot Market (WESM) operations in Mindanao.

In their monthly media briefing, the IEMOP reported an effective spot settlement price of P5.23 per kilowatt-hour in the first billing month of Mindanao WESM operations this February, reflecting a competitive price in the electricity market.

According to the group, the result is due to the significant supply margin averaging at 1,429 megawatts (MW) in the region, reflecting a surplus in available capacity compared to an average demand of only 1,745 MW.

The majority of Mindanao customers’ requirements were served by coal plants at 62.54 percent, followed by hydro plants at 30.39 percent and geothermal plants at 4.44 percent, with 13.90 percent of total consumption (1,142 gigawatt-hour) bought through the WESM.

During the briefing, the IEMOP also highlighted the successful scheduling and dispatch of generators during the first month of WESM operations, which employed an optimal and rules-based scheduling process that resulted in a more secure and reliable supply of electricity in the Mindanao grid.

The market operator also mentioned that it is continuously providing 24/7 operational support to Mindanao trading participants and conducting roadshows, focus group discussions and training to enhance their understanding of market operations.

Additionally, IEMOP is working closely with the stakeholders to facilitate full compliance with the pending WESM registration requirements before the end of the three-month relaxation period on April 25, 2023 as prescribed by the Department of Energy in its circular declaring the commercial operations of WESM in Mindanao.