WESM Mindanao

Brought about by the entry of more than 700 MW of capacity in 2016 and expected additional capacity of 1,260 MW by end of 2018, Mindanao has started to experience a power supply situation with ample margin.

In view of this, the Department of Energy (DOE) has declared the launch of the Wholesale Electricity Spot Market (WESM) in Mindanao through DOE DC2017-05-0009. Similar to its function for the Luzon and Visayas grids, the WESM would be the venue for efficient scheduling, dispatch, and settlement of energy withdrawal and injections in the Mindanao grid.

As provided under Section 1.1 of the DOE Circular, the existing WESM Rules and Market Manuals shall be applied to the WESM in Mindanao resulting in an integrated electricity market for the whole Philippines.

The integration of Mindanao to the WESM would cover, among others, the following:

• Application of the ERC-approved Price Determination Methodology (PDM) for pricing and settlement of electricity transactions in the Mindanao grid;
• Utilization of the Market Management System (MMS) for the determination of dispatch schedules in the Mindanao grid;
• Provision of access to Mindanao generators and customers to the MMS for the submission of bids, offers, and self-schedules, and other trading functions;
• Real-time publication of wholesale prices for electricity in the Mindanao grid in the public website; and
• Eligibility of Mindanao stakeholders for membership in the Philippine Electricity Market Board and its various committees (e.g., Rules Change Committee).