Wholesale Electricity Spot Market

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The Wholesale Electricity Spot Market (also known as WESM) is the Philippine spot market for the trading of electricity as a commodity.

Contents

Timeline

  • 2003, November, The Philippine Electricity Market Corporation was incorporated as a non-stock, non-profit corporation
  • 2004, March, the WESM project commenced
  • 2005, January, WESM Trial Operations in Luzon began
  • 2006, June 26, WESM Luzon Went LIVE
  • 2007, October, WESM Trial Operations for live dispatch in Visayas commenced

Overview of WESM

The WESM is governed and managed by the Philippine Electricity Market Corporation. The basic features of the WESM are as follows: [1]

Gross Pool

  • All energy transactions (whether contracted or not) are scheduled through the market.
  • Energy transactions include the demand and supply of electricity.
  • This allows all the power produced, supplied and used to be accounted for.

Net Settlement

  • Only spot market quantities are settled in the market, i.e., bilateral contract quantities between generators and distribution utilities or customers transacted in the pool are settled outside of the market.

Locational Marginal Price

  • Marginal price is computed at each market trading node (as defined in the WESM Market Network Model (MNM)) or transmission system location reflective of the transmission system loss and/or congestion (if there are any)

Reserve Co-optimization

  • Energy and Reserve offers are scheduled at the same time.

Demand Bids

  • Customers that can qualify to have their loads to be scheduled through the market can opt to submit demand bids for their scheduled loads

Mandatory Market

  • Existing distributors are mandated by law to procure at least 10% of its electricity from the WESM for the first 5 years from its establishment.
  • Entities directly connected to the transmission system are not allowed to inject or withdraw without registering in the WESM.

The trading process maybe summarized in five steps as follows: [2]

Step One: Trading participants submit online hourly energy offers (price and quantity).

Step Two: The Market Operator matches offers of generators with demand bids of customers, prioritizing the lowest offers (generators) and highest bids (customers).

Step Three: The Market Operator submits the dispatch schedule to the System Operator for central dispatch and informs the trade participants of the price and schedule.

Step Four: Electricity is dispatched to the buyer, for distribution to the end-users.

Step Five: Electricity used is measured and settled using the locational marginal prices and schedule.

Market Participants [3]

Distribution Utilities

The following entity is a direct participant:

The following entities are indirect participants:

  • Angeles Electric Corporation (AEC)
  • Dagupan Electric Corporation (DECORP)

Electric Cooperatives

The following entities are direct participants:

  • Albay Electric Cooperative (ALECO)
  • Benguet Electric Cooperative (BENECO)
  • Camarines Sur II Electric Cooperative (CASURECO II)
  • Ilocos Norte Electric Cooperative (INEC)
  • Tarlac I Electric Cooperative (TARELCO I)

The following entities are indirect participants:

  • Abra Electric Cooperative (ABRECO)
  • Camarines Sur III Electric Cooperative (CASURECO III)
  • Central Pangasinan Electric Cooperative (CENPELCO)
  • Mountain Province Electric Cooperative (MOPRECO)
  • Pangasinan I Electric Cooperative (PANELCO I)
  • Pangasinan III Electric Cooperative (PANELCO III)
  • Sorsogon II Electric Cooperative (SORECO II)

Generators

The following entities are direct participants:

The following entities are indirect participants:

  • Asia Pacific Energy Corporation (APEC)
  • Duracom Mobile Power Corporation (DMPC)
  • Hedcor, Incorporated (NMHC)

The following entities are intending to become WESM participants:

Non-Utilities

The following entity is an indirect participant:

  • Holcim Philippines, Incorporated (HPHI)

Suppliers

The following entities are intending to become WESM participants:

  • Aboitiz Energy Solution, Inc. (AESI)
  • AES Philippines Inc. (AESPI)
  • Angeles Power Inc. (API)
  • Team (Philippines) Energy Corporation (TPEC)
  • Trans-Asia Oil and Development Corporation (TAO)

List of Applicants

The following is a list of applicants as of 24 March 2008:

  • AES Philippines Incorporated (AESPI)
  • Angeles Power Incorporated (API)
  • Batangas II Electric Cooperative (BATELEC II)
  • Emeral Energy Corporation (EEC)
  • First Cabanatuan Ventures Corporation (FCVC)
  • First Cavite Industrial Estate Association Incorporated (FCIE)
  • First Gen Energy Solution (FGES)
  • Montalban Methane Power Corporation (MMPC)
  • Nueva Vizcaya Electric Cooperative (NUVELCO)
  • SN Aboitiz Power - Benguet, Inc. (SNAP-Benguet)
  • Sorsogon I Electric Cooperative, Incorporated (SORECO I)
  • Tarlac II Electric Cooperative (TARELCO II)
  • Tarlac Power Corporation (TPC)

Other Market Players [5]

Retail Electricity Supplier

A Retail Electricity Supplier (RES) is a person or entity authorized by the Energy Regulatory Commission (ERC) to sell, broker, market or aggregate electricity to the end-users. As of March 2008, the following have been granted licenses as RES:

  • Aboitiz Energy Solutions Inc.
  • First Gen Energy Solutions Inc. (FGES)
  • GN Power Ltd. Co.
  • GN Power Mariveles Coal Plant Ltd. Co.
  • Trans-Asia Oil and Energy Development Corp.

Wholesale Aggregator

A Wholesale Aggregator is a person or entity duly authorized by the Energy Regulatory Commission (ERC) to sell electricity to a distribution utility (DU) or a consortium/group of DUs. As of March 2008, the following have been grantes licenses as wholesale aggregators:

  • AES Philippines Inc.
  • Trans-Asia Oil and Energy Development Corp.
  • First Cabanatuan Ventures Corp. (FCVC)
  • Aboitiz Energy Solutions Inc. (AESI)
  • First Gen Energy Solutions Inc.
  • Angeles Power Inc. (API)
  • Manta Energy, Inc. (formerly iN2Power, Inc.)
  • GN Power Ltd. Co.
  • TeaM (Philippines) Energy Corp.

Registered Generation Capacities

Coal Power Plants

Plant Capacity (MW) Location Market Participant
Calaca Coal Power Plant 600 Calaca, Batangas National Power Corporation
Masinloc Coal Power Plant 600 Masinloc, Zambales National Power Corporation

Natural Gas Power Plants

Plant Capacity (MW) Location Market Participant
Ilijan Natural Gas Power Plant 1,200 Ilijan, Batangas Power Sector Assets & Liabilities Management Corporation

Hydroelectric Power Plants

Plant Capacity (MW) Location Market Participant
Ambuklao Hydroelectric Plant 0 Bokud, Benguet National Power Corporation
Angat Hydroelectric Plant 245 Norzagaray, Bulacan National Power Corporation
Binga Hydroelectric Plant 100 Itogon, Benguet National Power Corporation
Magat Hydroelectric Plant 360 Ramon, Isabela SN Aboitiz Power, Incorporated
Pantabangan Hydroelectric Plant 100 Pantabangan, Nueva Ecija First Gen Hydro Corporation
San Roque Hydroelectric Plant 345 San Manuel, Pangasinan Power Sector Assets & Liabilities Management Corporation

Geothermal Power Plants

Diesel and Oil-Based Power Plants

Volume and Spot Market Prices

The following are the weekly volume of energy traded and the corresponding load-weighted average price (LWAP) in Luzon: [4]

Week Ending Volume (MWh) LWAP (P/MWh) Week Ending Volume (MWh) LWAP (P/MWh)
July 2, 2006 824,020 3,370 July 1, 2007 863,654 5,753
July 9, 2006 829,544 2,259 July 8, 2007 856,737 5,267
July 16, 2006 777,989 2,473 July 15, 2007 837,790 8,571
July 23, 2006 792,899 1,853 July 22, 2007 874,657 8,887
July 30, 2006 755,131 1,410 July 29, 2007 859,849 5,858
August 6, 2006 770,381 2,339 August 5, 2007 860,155 3,677
August 13, 2006 796,394 4,003 August 12, 2007 800,590 2,951
August 20, 2006 779,714 3,176 August 19, 2007 793,951 2,248
August 27, 2006 765,809 3,629 August 26, 2007 802,033 2,725
September 3, 2006 828,823 4,511 September 2, 2007 770,226 1,344
September 10, 2006 822,460 4,396 September 9, 2007 842,990 4,350
September 17, 2006 828,286 3,970 September 16, 2007 854,646 3,282
September 24, 2006 823,578 6,826 September 23, 2007 815,126 3,146
October 1, 2006 591,675* 6,083 September 30, 2007 816,009 2,611
October 8, 2006 737,513 10,073 October 7, 2007 799,770 1,845
October 15, 2006 775,489 8,098 October 14, 2007 821,979 3,984
October 22, 2006 788,184 5,741 October 21, 2007 833,910 4,069
October 29, 2006 775,582 3,261 October 28, 2007 806,965 2,485
November 5, 2006 749,604 2,996 November 4, 2007 723,259 1,788
November 12, 2006 805,240 3,384 November 11, 2007 832,587 5,095
November 19, 2006 807,485 5,822 November 18, 2007 800,163 2,494
November 26, 2006 807,744 9,198 November 25, 2007 775,702 1,108
December 3, 2006 754,152 8,890 December 2, 2007 746,183 2,742
December 10, 2006 756,520 10,139 December 9, 2007 783,224 4,794
December 17, 2006 760,711 9,449 December 16, 2007 820,826 5,546
December 24, 2006 727,402 2,861 December 23, 2007 804,113 4,445
December 31, 2006 636,300 2,809 December 30, 2007 724,816 1,826
January 7, 2007 715,593 3,361 January 6, 2008 693,976 1,115
January 14, 2007 752,155 4,677 January 13, 2008 782,411 985
January 21, 2007 779,567 2,360 January 20, 2008 796,415 1,891
January 28, 2007 778,541 2,444 January 27, 2008 795,242 1,918
February 4, 2007 705,161 780 February 3, 2008 810,077 4,757
February 11, 2007 753,772 2,845 February 10, 2008 813,250 8,387
February 18, 2007 769,158 4,121 February 17, 2008 770,263 2,982
February 25, 2007 824,441 6,989 February 24, 2008 772,691 1,554

* Market suspension due to typhoon Milenyo

See Also

  1. Philippine Power Statistics from the Department of Energy

References

  1. ^ Light Up The Future With A Competitive Electricity Market, brochure published by Philippine Electricity Market Corporation (PEMC)
  2. ^ The Power To Make A Brighter Future, brochure published by Philippine Electricity Market Corporation (PEMC)
  3. ^ List of Registered WESM Participants, Accessed 05 June 2008
  4. ^ Weekly Summary Report published by Philippine Electricity Market Corporation (PEMC), see also Operational Market Reports Overview
  5. ^ ERC approves First Gen, AES bids as power suppliers, By Donnabelle L. Gatdula, ABC-CBN News Online, 9 March 2008

External links