With the endorsement of the Department of Energy (DOE) and the Energy Regulatory Commission (ERC), the commercial operations of the Reserve Market are now in full swing.
The Independent Electricity Market Operator of the Philippines (IEMOP) announced that providers of Ancillary Services (AS) are now eligible to participate in the scheduling and dispatch process of the Wholesale Electricity Spot Market (WESM). This participation specifically covers offering regulation, contingency, or dispatchable ancillary services.
In a statement, the DOE explained that Reserves are essential services designed to maintain power system balance, ensuring normal frequency and voltage levels.
These services respond to demand fluctuations, variability in renewable energy, and potential large generating unit losses.
“The full commercial operations of the Reserve Market today is a significant step forward for the energy sector. This will bring efficient dispatch of all available capacities by co-optimizing the capacity and price offers for energy and reserve to ensure that the required levels for both services are always met,” said Energy Secretary Raphael P.M. Lotilla.
Lotilla also said that this would empower the National Grid Corporation of the Philippines (NGCP) to fulfill its obligation of ensuring the availability of ample reserves at all times. These reserves can be promptly dispatched whenever required.
“The Full Commercial Operations of the Reserve Market heralds a new era of competitive power supply procurement with the end goal of ensuring sufficient and reliable power supply for our country,” said IEMOP in its statement.
The successful initiation of the Reserve Market reflected the government’s commitment to fostering investment opportunities for generation companies. Additionally, it served as a fuel for infrastructure development and has the potential to generate local employment opportunities.