The Independent Electricity Market Operator of the Philippines (IEMOP) on Wednesday projected the coming online or the full commercial operation of the power reserves market before the end of the month.
The IEMOP said a pilot reserve market operation was launched a day after Christmas with full commercial operations seen by 26 January this year involving binding financial transactions.
The reserves market provides a venue for investors to venture into new generating capacities for both energy and reserve purposes.
The business said the co-optimized scheduling of generators to provide energy and reserve, coupled with the dynamic determination of reserve requirements should result in an optimal mix of contracted and spot reserve capacities that promises stakeholders and end-users a more reliable supply of electricity.
The IEMOP said the modern power grids’ increasing complexity and expanding functionalities require a system capable of promptly addressing grid imbalances.
In a separate statement, the Philippine Electricity Market Corp. (PEMC) gave assurance the full commercial operation of the co-optimized energy and reserves market will be realized soon.
PEMC helps determine the readiness of the reserve market based on six readiness criteria that include the approval of a price determination methodology for the reserve pricing mechanism; a successful completion of ancillary service capability testing for all generating facilities; and that all necessary systems and procedures including interfaces are in place.
It is also mandated to establish measures including, but not limited to, reserve offer price cap and floor, and secondary price cap; schedule, dispatch, bill and settlement procedures relative to energy and reserves co-optimization are fully operational; and successful trial operations to ensure readiness of providers.
While the IEMOP said the commercial operation of the reserves market is due before the end of the month, the PEMC said this will be determined by the Department of Energy to ensure all six parameters are met.
