President’s Hall, Malacañan Palace
February 6, 2023
“This is, indeed, a significant leap as we endeavor to achieve a reliable, secure and competitively priced electricity supply for our consumers,” said President Ferdinand R. Marcos Jr. when he led the ceremonial launching of the Wholesale Electricity Spot Market (WESM) commercial operation in the Mindanao grid at the President’s Hall in Malacañan Palace.
At present, Mindanao has 4,321 megawatts of registered capacity with peak demand reaching only around 2,167 megawatts. The President underscored that with the establishment of commercial operations in Mindanao, around 2,000 megawatts of uncontracted capacities can now be sold in the WESM and be dispatched at any time.
He further emphasized that this will provide supply to distribution utilities, electric cooperatives and other end-users whenever their contracted power plants are not available. In terms of pricing, WESM encourages generators to compete and sell electricity at lower prices to secure a schedule for dispatch.
“I believe that this is a very important step and in rationalizing our power capacity, our power distribution, and hopefully with an eye also to the lowering prices of fuel in the world market that this will lead to a lower cost not only for our industrial partners but also for our household consumers,” the Chief Executive conveyed in his message.
Pursuant to Republic Act No. 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001, the WESM was created to serve as a venue for trading electricity where prices are based on actual use and availability. It began commercial operations in Luzon in June 2006 and the Visayas in December 2010.
Through the EPIRA, operations of the WESM were transferred from the Philippine Electricity Market Corporation (PEMC) to the Independent Market Operator of the Philippines (IEMOP) in September 2018 upon the endorsement of the Department of Energy (DOE) and participants in the electric power industry market.
According to the PEMC, the WESM in Mindanao will have a similar function as a venue for efficient scheduling, dispatch, and settlement of energy withdrawal and injections.
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