2 Mayo 2024, Huwebes
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WESM operation suspended on red alert
By J.Lo
“Commission is working hard to alleviate impact of El Niño in our power system…we are looking for ways to mitigate impact of extremely high demand resulting from high heat index as these affect our consumers,” Energy Regulatory Commission (ERC) chairperson and chief executive officer Monalisa Dimalanta said ERC has suspended Wholesale Electricity Spot Market (WESM) due to series of red alerts in Luzon and Visayas grids since April 16.
ERC cited data from WESM indicating average prices per day amid high heat index went up by 11 and 53 percent in Luzon and Visayas, respectively.
Due to this, ERC will implement “administered price” during period of market operation.
However, dispatch interval between administered price and secondary price cap will be “subject to price mitigation.”
The lower amount between two prices will be applied in settlement of transactions.
Suspension of WESM will be lifted once regional available capacity, less actual regional demand, reaches above zero for 24 consecutive hours.
Suspension is pursuant to Electric Power Industry Reform Act of 2001, allows ERC to suspend market operations in the wake of national calamity.
ERC cited increased power demand due to El Niño phenomenon as emergency.
Dimalanta urged power distribution utilities to be “proactive in exploring ways” to lessen its exposure to spot market.
“Impact of high prices can also be alleviated by existing programs, such as anti-bill shock lending program of Land Bank of the Philippines, to allow consumers to pay through installment incremental increases in their electricity bill,” Dimalanta said.
Independent Electricity Market Operator of the Philippines has yet to coordinate with ERC regarding suspension of spot market.
National Grid Corp. of the Philippines (NGCP) announced that Luzon grid is on yellow alert as available capacity is only at 15,026 megawatts amid peak demand of 12,899 MW.
NGCP issues red alert when operating margin is insufficient to meet transmission grid’s contingency requirement.
Yellow alert is raised when power supply is not sufficient to meet consumer demand and transmission grid’s regulating requirement.
Luzon and Visayas grids have been placed on red alert for around 20 hours as of April 25. Duration of alert was significantly longer than in previous years.
Meanwhile, Philippine Energy Efficiency Alliance (PE2) called for strategic shift in flattening 3,340-MW increase in demand through peak-shaving or load-shifting toward off-peak hours.
PE2 said permanent peak shaving is possible through “aggressive replacement of energy-intensive systems” in commercial, industrial, transport and government sectors with more efficient technologies.
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