As part of its preparation for full operational capacity, the Independent Electricity Market Operator of the Philippines (IEMOP) initiates the Reserve Market pilot operation.
The pilot stage is in compliance with the Department of Energy’s (DOE) recommendation to maintain the final preparations’ steady progress by directing the System Operator (SO), Market Operator (MO), and Trading Participants to follow the operational guidelines for the central scheduling and dispatch of contracted ancillary services.
Before the Reserve Market, the SO secures the requirements through contracts with ancillary service providers, which are submitted to the Energy Regulatory Commission (ERC).
Once the Reserve Market is deemed operational, the SO would now be able to get hold of reserves from the spot market to meet the reserve requirements of the system.
The primary products to be traded in the Reserve Market would be the Reserves, specifically the “Frequency Control Ancillary Services.” Through these, a dependable and stable electricity supply can be guaranteed to address unforeseen fluctuations in the supply and demand of electricity.
In addition to guaranteeing a steady and adequate supply of energy, the market would also aid the country by giving investors a chance to explore new energy and reserve production opportunities.
“The operation of the Reserve Market in the Philippine WESM is a testament to our shared commitment to the growth of the Philippine Energy Sector; a growth that ensures reliability, embraces innovation, and promotes competition, all leading to transparency and reasonableness of our power rates,” said ERC Chairperson Atty Monalisa Dimalanta.
