The delay in the completion of the Mindanao-Visayas interconnection project (MVIP) will not affect the planned introduction of the Wholesale Electricity Spot Market (WESM) in Mindanao this year, according to the Independent Electricity Market Operator of the Philippines (IEMOP) .
“The feasibility to start up the market in Mindanao is not really hinged or tied with the interconnection. Even stand alone, the market in Mindanao can be operated,” said Robinson Descanzo, IEMOP trading operations head and acting chief operating officer.
Descanzo said the Department of Energy has indicated WESM in Mindanao should be pursued even if the grids of Luzon and Visayas are yet to be connected.
The National Grid Corporation of the Philippines earlier announced the MVIP may extend beyond its adjusted December 2021 target completion due to damage sustained by its fiber optic cable connection.
Meanwhile, IEMOP’s simulations showed no power shortages are expected this summer due to low demand and cooler temperatures brought by the La Niña phenomenon.
Where no outage was factored in, the average power supply and demand ratio from March to June will be at 14,433 megawatts (MW):9,682; 14,690 MW:9,823 MW; 14,783 MW:10,302 MW; and 15,071 MW:10,651 MW.
Under a scenario where 1,000 MW of power is on outage, supply and demand ratios for the same months are as follows: 13,345 MW:9,682 MW; 13,691 MW:9,823 MW; 13,784 MW:10,302 MW; and 14,072 MW:10,651 MW.
“Based on availability of supply, we have a big supply margin since demand has yet to take off,” said Descanzo, adding power supply will be stable unless power plants go on forced shutdown which normally happens when the weather is extremely hot.
“As long as these outages will not be simultaneous, supply will be enough and we will avoid power interruptions,” he said. – Jed Macapagal