MANILA — The Department of Energy (DOE) announced plans to reactivate the reserve market early this month, aiming to enhance the efficiency and reliability of the Philippines' electricity supply. This decision follows recent regulatory adjustments and coordination with various energy sector entities.
According to Philippines News Agency, the lifting of a suspension by the Energy Regulatory Commission (ERC) on Section 8 of the Price Determination Methodology (PDM) will enable the resumption of the reserve market. This development is anticipated by stakeholders within the power sector and the DOE. Guevara emphasized the importance of coordination among the DOE, ERC, the Independent Electricity Market Operator of the Philippines (IEMOP), and the National Grid Corporation of the Philippines (NGCP) in making necessary adjustments to the Wholesale Electricity Spot Market (WESM) systems to ensure a smooth transition.
The DOE highlighted the need for changes in the WESM systems and processes to synchronize the reserve market's one-hour dispatch interval with the energy market's five-minute trading interval. This synchronization is crucial for the co-optimization of energy and reserves, enhancing the overall efficiency of electricity market operations.
Further, the DOE has instructed the market operator to submit new guidelines for approval to ensure compliance with the updated ERC's PDM. An official advisory is expected to be issued by the DOE on August 5, once these guidelines are in place, officially marking the resumption of the reserve market operations.