By THE Department of Energy (DoE) said it has set a target to begin commercial operations of the spot market for power reserves on Dec. 26.
“Starting Dec. 26, the market operator shall implement the full commercial operation of the reserve market, wherein the co-optimized energy and reserve schedules, including their associated prices, generated by the market dispatch optimization model shall be financially binding,” the DoE said in a draft circular issued on Sept. 16.
On Friday, the Energy Regulatory Commission (ERC) granted preliminary approval to the application for amendments to the price determination methodology.
The joint application was filed by the Independent Electricity Market Operator of the Philippines (IEMOP) and the Philippine Electricity Market Corp. in October 2022 for the implementation of the co-optimized energy and reserve market in the Wholesale Electricity Spot Market (WESM).
According to the circular, the IEMOP is directed to complete preparations and start limited live dispatch operations between Sept. 26 and Dec. 25.
During the period, the IEMOP will conduct live parallel operations which involves end-to-end testing using a non-production system between the market operator, system operator, and registered ancillary service (AS) providers.
IEMOP operates the WESM. The reserve market will facilitate the trading of AS or power reserves to support the transmission system.
It started trial operations for the reserve market on June 26, according to the DoE.
“All generation companies, duly certified and accredited by the system operator as AS providers, shall ensure completion of their registration on the reserve market before Sept. 26,” the DoE said.