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2 Mayo 2024, Huwebes Happy 48th Anniversary Mariveles Baptist Church, Mariveles, Bataan WESM operation suspended on red alert By J.Lo "Commission is working hard to alleviate impact of El Niño in our power system…we are looking …
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May 2

2 Mayo 2024, Huwebes

Happy 48th Anniversary Mariveles Baptist Church, Mariveles, Bataan

WESM operation suspended on red alert

By J.Lo

"Commission is working hard to alleviate impact of El Niño in our power system…we are looking for ways to mitigate  impact of  extremely high demand resulting from  high heat index as these affect our consumers," Energy Regulatory Commission (ERC)  chairperson and chief executive officer Monalisa Dimalanta said ERC has suspended  Wholesale Electricity Spot Market (WESM) due to  series of red alerts in Luzon and Visayas grids since April 16.

ERC cited data from WESM indicating average prices per day amid  high heat index went up by 11 and 53 percent in Luzon and  Visayas, respectively.

Due to this,  ERC will implement  "administered price" during  period of market operation.

However,  dispatch interval between administered price and  secondary price cap will be "subject to price mitigation."

The lower amount between two prices will be applied in settlement of transactions.

Suspension  of WESM will be lifted once regional available capacity, less  actual regional demand, reaches above zero for 24 consecutive hours.

Suspension  is pursuant to Electric Power Industry Reform Act of 2001, allows ERC to suspend market operations in the wake of  national calamity.

ERC cited increased power demand due to  El Niño phenomenon as  emergency.

Dimalanta urged power distribution utilities to be "proactive in exploring ways" to lessen its exposure to  spot market.

"Impact of high prices can also be alleviated by existing programs, such as  anti-bill shock lending program of  Land Bank of the Philippines, to allow consumers to pay through installment  incremental increases in their electricity bill," Dimalanta said.

Independent Electricity Market Operator of the Philippines has yet to coordinate with  ERC regarding  suspension of  spot market.

National Grid Corp. of the Philippines (NGCP)  announced that  Luzon grid is on yellow alert as  available capacity is only at 15,026 megawatts amid peak demand of 12,899 MW.

NGCP issues red alert when  operating margin is insufficient to meet  transmission grid's contingency requirement.

Yellow  alert is raised when power supply is not sufficient to meet consumer demand and  transmission grid's regulating requirement.

Luzon and Visayas grids have been placed on red alert for around 20 hours as of April 25.  Duration  of  alert was significantly longer than in previous years.

Meanwhile,  Philippine Energy Efficiency Alliance (PE2) called for  strategic shift in flattening 3,340-MW increase in demand through peak-shaving or load-shifting toward off-peak hours.

PE2 said  permanent peak shaving is possible through "aggressive replacement of energy-intensive systems" in  commercial, industrial, transport and government sectors with more efficient technologies.

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