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REGIONAL DEVELOPMENTS:
PHILIPPINESSingapore Electricity Roundtable 2015
08 July 2015
Outline
Market
Developments
Market
Statistics
WESM
Overview
Future
Directions
WESM OVERVIEW
What is the WESM?
• The Philippine wholesale electricity spot market
(WESM) is a real time energy market.
• It is currently operational in two of the three major
regions of the country, Luzon and Visayas, which are
interconnected by an HVDC link.
• The WESM was created in 2001 by virtue of the
Electric Power Industry Reform Act (EPIRA).
WESM Objectives
• To establish a competitive, efficient, transparent and
reliable market for electricity where:
A level playing field exists
Trading of electricity is facilitated
Third parties are granted access to the power
system
Prices are governed as far as practicable by
commercial and market forces
Efficiency is encouraged
Market Design
HOURLY, REAL TIME GROSS POOL
SCHEDULING
PRICING SETTLEMENT
NET SETTLEMENT
MANDATORY
NODAL (LMP)
BID/OFFER-BASED
EX
ANTE
EX
POST
TWO-SETTLEMENT SYSTEM
Market Structure
PEMC Board
PEM Auditor
Rules Change
Committee
Dispute Resolution
Administrator
Market Surveillance
Committee
Technical CommitteeEnforcement and
ComplianceMarket Assessment
GroupMarket Operator
Self-Governance & Operations
Suppliers /
Aggregators
Metering Services Providers
Network Service Providers
(NGCP & DUs)
Generators /
A / S Providers Customers
MARKET DEVELOPMENT
Implementation: Timeline
Market Development
INTEGRATION
OF VISAYAS
IN THE WESM
DECEMBER 2010
RETAIL
COMPETITION
AND OPEN
ACCESS
(PHASE I)
JUNE 2013
INTERIM
MINDANAO
ELECTRICITY
MARKET
DECEMBER 2013
CENTRAL
SCHEDULING
OF ENERGY
AND RESERVES
(TRIAL)
MARCH 2015
RENEWABLE
ENERGY MARKET
TRADING OF
RE
CERTIFICATES
Renewable Energy
INTEGRATION OF
INTERMITTENT RE
RESOURCES IN THE WESM
PREFERENTIAL
DISPATCH
FEED-IN TARIFF
MECHANISM
REMMITANCE
OF WESM
PROCEEDS TO
FIT-ALL FUND
MARKET STATISTICS
Market Participants
64 85 77
Registered
Capacity:
15,892 MW
Intermittent
RE:
511 MW
Market Trading Nodes
GENERATOR
NODES
CUSTOMER
NODES
113 222LUZON
GENERATOR
NODES
CUSTOMER
NODES
63 99VISAYAS
Generation Mix
0%
20%
40%
60%
80%
100%
2007 2008 2009 2010 2011 2012 2013 2014
SOLAR BIOFUEL
WIND DIESEL/OIL
GEOTHERMAL HYDROPOWER
COAL NATURAL GAS
2014 GEN MIX
Supply, Demand & Load-Weighted Ave. Price
MALAMPAYA
PLANNED
MAINTENANCE
MAINTENANCE
SHUTDOWNS OF
SEVERAL COAL
/ NAT. GAS
PLANTS
TYPHOON
“GLENDA”
NOTE: 7-DAY SIMPLE MOVING AVERAGE (SMA)
A
A AA C AB B
B
C
A
2009 2010 2011 2012 2013 2014 2015
Market Transaction Levels
YEAR 2007 2008 2009 2010 2011 2012 2013 2014
Luzon Peak Demand, MW 6,590 6,681 6,932 7,643 7,530 7,898 8,237 8,671
Visayas Peak Demand, MW -- -- -- -- 1,447 1,486 1,572 1,550
System Peak Demand, MW -- -- -- -- 8,849 9,303 9,735 10,145
Total Energy Volume, GWh 40,052 41,153 42,168 46,228 53,006 55,822 57,901 59,474
Spot Volume, % 15% 14% 15% 14% 8% 8% 10% 7%
Effective Spot Settlement
Price, USD/MWh124 102 91 163 116 181 129 127
FUTURE DIRECTIONS
Future Directions
RCOA
Phase II
Contestability
threshold: 750
KWH monthly
average
Reserve Market
Pricing and cost
recovery
mechanism – for
regulatory
approval
Market Systems
Central Registration
and Settlement
System: 2015
New Market
Management
System: 2017
Mindanao
Preparations for
IMEM resumption
Readiness
assessment:
WESM Mindanao
Research and
studies ongoing
Derivatives
MarketTraders
Accreditation
Program
Industry Code of
Ethics
Market
Governance
For more info, visit www.wesm.ph
THANK YOU VERY MUCHWESM Works.