AC Energy Corp. (ACEN) said the creation of a power reserve market in the Philippines would encourage generation companies to build more capacity.
“With the reserve market, it is like having a spot market. Companies like us will be able to take our own view of the market and build the capacity ahead of an expected demand, knowing there will be a market to sell to,” said Eric Francia, ACEN president and chief executive officer, said in an online briefing hosted by the Philippine Institute for Development Studies yesterday.
The country’s power spot market operator is mandated to establish a market dedicated for reserve energy when “reasonably feasible.”
“It is important for the government or regulators to enforce the reserve market. We have been talking about this over the last decade or so but we’re still waiting for the reserve market to happen. It will really spur more investments especially in battery storage or ancillary capacity if we have this open and transparent reserve market,” Francia said.
Last June, the Independent Electricity Market Operator of the Philippines (IEMOP) said it is crafting a price determination methodology (PDM) on a reserve market for electricity.
The PDM will provide participants with specific principles and computational formulas that will verify the correctness of charges being imposed.
IEMOP said the proposed PDM will have to be approved by the Department of Energy, Energy Regulatory Commission and the Securities and Exchange Commission.
IEMOP said the creation of a reserve market does not additional legislation as it is provided under there the Electric Power Industry Reform Act of 2001. – Jed Macapagal
