Power reserves may soon be purchased on the spot
MANILA —The Independent Electricity Market Operator of the Philippines (Iemop) has begun the integration of the power reserve market into the Wholesale Electricity Spot Market (WESM) to ensure stable supply for households even when demand spikes.
Iemop on Wednesday said the pilot stage was being done in preparation for full commercial operations on Jan. 26.
Iemop added it was “another milestone” after the launch of the spot market in Mindanao a year ago.
The reserve market will usher in the trade of power reserves, or ancillary services, in the WESM. It is expected to help increase electricity supply that is crucial during power interruptions.
Readiness
“Modern grids’ increasing complexity and expanding functionalities require a system capable of promptly addressing grid imbalances,” Iemop said in a statement.
READ: Power reserve market seen fully operational by Dec 26
The Department of Energy mandated the pilot implementation last Dec. 22. It would allow the scheduling of contracted ancillary services using “enhanced systems” and real-time dispatch of committed reserves, among others, Iemop explained.
For its part, Philippine Electricity Market Corp., the governance arm of the market, said it would determine the readiness of the cooptimized energy and reserve markets in time for full operations.
Previously, reserves were secured solely through contracts with ancillary service providers.
ERC chair Monalisa Dimalanta said the reserve market could help ensure “reasonable” power rates, as WESM prices tend to fluctuate based on supplies fed by generators and market demand.
