IEOMP starts trial operations for power reserve market

MANILA, Philippines — The Independent Electricity Market Operator of the Philippines (IEMOP) commenced on Monday the trial operations program (TOP) for the country’s much awaited reserve market.

The Department of Energy (DOE) said the TOP would be a non-binding exercise for the reserve market participants to test all market systems for registering, scheduling, dispatch and pricing, metering, cost recovery, and settlement.

“For clarity, the non-binding exercise shall mean that the results of the TOP shall not be used commercially for scheduling, dispatch, settlement, and cost recovery,” the agency said.

Among the conditions for the commercial operations of the reserve market is the approval of the price determination methodology by the Energy Regulatory Commission (ERC), as well as the successful conduct of the TOP by the market operator, system operator, and WESM participants.

The DOE has directed IEMOP, as the market operator, to commence the TOP by June 26 in anticipation of the eventual approval by the ERC of the price determination methodology.

IEMOP said all generation companies accredited as ancillary service (AS) providers are mandated to register in the WESM starting June 26, with deadline for registration set on July 14, 2023.

It said only registered AS providers with valid AS certificates are expected to participate in the reserve market TOP.

Accredited AS providers are those with valid AS capability certificates that were issued by the National Grid Corp. of the Philippines., according to IEMOP.

The reserve market is a mechanism where generation capacities for power reserves are auctioned off.

Its implementation is expected to spur more investments in battery storage and ancillary capacity to support the needs of the power grid.