The Independent Electricity Market Operator of the Philippines (IEMOP) is eyeing for the full commercial operations of the power reserves market before the end of the month.
IEMOP said pilot operations of the reserves market was launched last December 26 with full commercial operations eyed by January 26 that will involve binding financial transactions.
IEMOP said the reserves market provides a venue for investors to venture into new generating capacities for both energy and reserves.
The firm added the co-optimized scheduling of generators to provide energy and reserve, coupled with the dynamic determination of reserve requirements will also result in an optimal mix of contracted and spot reserve capacities that promises stakeholders and end-users a more reliable supply of electricity.
IEMOP said modern power grids’ increasing complexity and expanding functionalities require a system capable of promptly addressing grid imbalances.
The firm said this will be addressed by the reserves market as it will mainly offer and trade frequency control ancillary services that provide a safety net to ensure the reliable and stable supply of electricity.
In a separate statement, the Philippine Electricity Market Corp. (PEMC) assured the full commercial operations of the co-optimized energy and reserves market will be realized soon.
PEMC is tasked to determine the readiness of the reserve market based on six readiness criteria including the approval of price determination methodology for the reserve pricing mechanism; a successful completion of ancillary service capability testing for all generating facilities; and that all necessary systems and procedures including interfaces are in place.
PEMC is also mandated to establish measures including, but not limited to, reserve offer price cap and floor, and secondary price cap; schedule, dispatch, bill and settlement procedures relative to energy and reserves co-optimization are fully operational; and successful trial operations to ensure readiness of providers.
IEMOP that the commercial operations of the reserves market is eyed before the end of the month but PEMC said that it will still be determined by the Department of Energy to ensure that all six criteria are met.
