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Manila Bulletin devider Business devider WESM-Mindanao operation pushed ahead of MVIP energization

WESM-Mindanao operation pushed ahead of MVIP energization

Published May 3, 2022 04:48 pm

The Wholesale Electricity Spot Market (WESM) in Mindanao is being pushed for commercial operation in June this year, ahead of the energization of the Mindanao-Visayas Interconnection Project (MVIP), which is subsequently targeted by the fourth quarter.

According to Edward I. Olmedo, senior manager for Operations Planning and Modeling of the Independent Electricity Market Operator of the Philippines (IEMOP), a definitive recommendation on WESM-Mindanao’s planned commercial operation has already been forwarded to the Department of Energy.

“We had discussion with the DOE during the WESM-Mindanao review. We’re really looking at the final preparation for establishing WESM in Mindanao. Hopefully that happens on or before June, but we’ll get more of a feel on the final declaration of DOE if that pushes through,” he said.

The IEMOP executive pointed out “We would want WESM to operate already in Mindanao before the energization of MVIP, because there would be a lot of hurdles on transactions if there would be exchange of power between Visayas and Mindanao and the WESM is not yet there.”

To date, IEMOP Manager for Registration and Stakeholder Services Katrina Garcia-Amuyot indicated that the number of registered participants in the Mindanao power spot market already surpassed 50-percent vis-à-vis qualified players in the grid.

“We have more than 50 percent that are fully registered out of the total expected of about 58 out of 96. And then we continuously coordinate with them (trading participants), so they can complete their registration requirements,” she noted.

Olmedo added if the spot market in Mindanao is already on commercial state, the transactions involving exchange of power will be handled by WESM "That’s what IEMOP is recommending – that we do WESM in Mindanao even before the energization of MVIP, so we’ll wait for the final decision of the DOE,” said Olmedo.

Once the targeted June commercial operation has been firmed up, “We have enough time before the energization (of MVIP), so we’ll not end up problematic relative to transactions on the exchange of power between the two grids.”

The P52-billion MVIP undertaking of system operator National Grid Corporation of the Philippines (NGCP) will connect Visayas and Mindanao grids -- and this will also be integrated with the Luzon and Visayas grids; hence, that will ultimately realize the country’s bid for having a fully linked-up national grid.

It was stated by IEMOP that the new target set for MVIP’s energization will be October this year and injection of capacity into the interconnected power grids may be ramped up until December.

There is currently surplus capacity in Mindanao grid that once exported to Visayas could also be successively injected into Luzon grid, which is now wobbling through tight supply conditions.

Related Tags

#WESM #MVIP #MINDANAOGRID #INTERCONNECTION #SURPLUSCAPACITY #POWEREXCHANGE
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