WESM Mindanao operations likely by December – DOE

MANILA, Philippines — The commercial operations of the wholesale electricity spot market (WESM) in Mindanao is targeted to push through by December after numerous delays.

“We are finalizing the endorsement to open WESM Mindanao commercially in December this year, but with special considerations on some issues that need to be fully addressed,” Department of Energy (DOE)-Renewable Energy Management Bureau senior science research specialist Jordan Ballaran said.

“I believe there are some recurring issues under the WESM Mindanao that needs to be really fully addressed. So for that reason, they will open it with some considerations on that issues,” he said.

The Independent Electricity Market Operator of the Philippines (IEMOP), the operator of the WESM, was also hoping that the launch of WESM in Mindanao would happen this year.

“There is still no advise from the DOE as to when, but I think that can be done already this year,” IEMOP corporate communications OIC manager Josell Co earlier said.

The DOE published last year a draft department circular proposing to declare the commercial operations of the WESM in Mindanao on Dec. 26, 2021.

That did not push through, and launch date was previously moved to June this year, which also did not happen.

The WESM is a venue where electricity can be traded as a commodity.

Through it, generators can sell their excess capacities not covered by contracts, while customers can also buy additional capacities on top of their contracts.

Similar to its function for the Luzon and Visayas grids, the WESM in Mindanao is seen as a venue for efficient scheduling, dispatch, and settlement of energy withdrawal and injections in the Mindanao grid.

The IEMOP earlier pushed for the launch the Mindanao WESM ahead of the energization of the Mindanao-Visayas Interconnection Project (MVIP).

The MVIP will connect the Visayas and Mindanao grids through a high-voltage direct current system, realizing a one Philippine grid and allowing a power exchange of initial 450-megawatt capacity.