Upgraded WESM system trial attracts few takers

By Adam J. Ang – September 21, 2020 | 7:02 pm
from Business World

THE operator of the wholesale power market’s trading floor said it is attracting low levels of participation from small producers for the trial run of its upgraded system.

The segment, which includes renewable generators, is not keen to join the trial operations of the enhanced Wholesale Electricity Spot Market (WESM) due to the absence of sanctions for failing to do so, according to the Independent Electricity Market Operator of the Philippines (IEMOP).

“There is a challenge when it comes to the participation of renewable energy generators,”  Edward I. Olmedo, manager of market information modeling at IEMOP, said at a recent virtual briefing.

IEMOP Chief Operating Officer Robinson P. Descanzo said: “Di naman natin nilalahat sila pero (We’re not referring to all the companies but) in general  (that is our) observation because wala pang imposition ng mga penalties (there is still no penalty for not joining). They are just challenging the rules and process,” he added.

In the latest trial system run, conventional or large generators in Luzon were “actively” participating with about 94% of them submitting supply offers, while 65% of the sector in the Visayas have put up offers.

Meanwhile, 43% and 24% of small generators in the Luzon and the Visayas markets, respectively, have nominated their capacities.

Offer submissions and nominations of supply constitute participation in the trials. IEMOP is targeting at least 90% participation.

By the end of September, IEMOP expects the enhanced WESM design to be ready. It will continue conducting trial operations until the system is launched on Dec. 26, a target date set by the government.

A WESM in Mindanao is also being tested.