DOE targets June opening for Mindanao WESM

DOE eyes opening of WESM Mindanao in June 2017

The Department of Energy (DOE) is targeting a June launch for Mindanao’s Wholesale Electricity Spot Market (WESM), with over 1,000 megawatts (MW) of power set to enter the grid.

“The establishment of the WESM will serve as the mechanism to efficiently tap the excess capacities in the area to avoid rotating brownouts and ensure 24-hours continuous electricity service,” DOE said in a report by The Standard.

Earlier, DOE said that 782 MW was added to the Mindanao grid in 2016. This year, an additional capacity of 1,208 MW is expected.

But despite the additional capacity, power interruptions continue to haunt Mindanao – particularly in franchise areas of distribution utilities that lack power supply agreements to keep pace with the growing demand of power.

Power generation companies have doubts in operating their plants in the absence of approved supply contracts or compensation mechanism from the Energy Regulatory Commission (ERC).

The DOE has also completed two public consultations in preparation of the WESM Mindanao launch, in Cagayan de Oro and Zamboanga City.

Public consultations in Davao City, Butuan City, and General Santos City will run until March.

DOE has inked a partnership with the Mindanao Development Authority that will undergo an information, education, and communication (IEC) drive. The partnership includes the Philippine Electricity Market Corp. (PEMC) and the National Grid Corp. of the Philippines (NGCP).