WESM readies shift to one-settlement power spot market.
From a trading platform with ex-ante and ex-post offers, the Wholesale Electricity Spot Market (WESM) will soon shift to a one-settlement process and with a faster five-minute dispatch interval.
According to Philippine Electricity Market Corporation (PEMC) President Melinda L. Ocampo, this shift to a single settlement and faster trading interval will happen by 2017 as part of the overall calibration of the WESM's new market management system.
Fundamentally, the electricity spot market's shift to new MMS will require changes in the WESM Rules, then the price algorithm plus the billing and settlement systems.
PEMC vice president for information systems and technology development Carlito C. Claudio has explained that the WESM will have to undergo major transformation in its algorithm or the process and system of rules that sets calculations of volumes/capacities and price offers done through the spot market.
Although linear programming will still be adopted, he reiterated that "there will be a big change in the new MMS because we will already implement the five-minute dispatch interval...no more gate closure as to when offers shall be accommodated, and we will just also have one-settlement ...no more ex-ante and ex-post settlements."
He added that the MMS hardware "is designed to be for that trading interval, so we can accommodate the offers at a faster pace."
In the existing WESM set-up, ex-ante offer is based on forecast demand, while ex-post is referenced on actual demand. From these, the price is determined using the same set of offers. In the settlement process, the ex-ante price takes reference on the megawatt-schedule less the bilateral contract quantities (BCQs); while in ex-post, it uses metered quantity minus the MW schedule.
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|Title Annotation:||Business News|
|Date:||Sep 7, 2015|
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