Updated January 31, 2009 12:00 AM
To address the current power situation in the Visayas grid, the Department of Energy (DOE) has given the go-signal for the Philippine Electricity Market Corporation (PEMC), the governing body of the Wholesale Electricity Spot Market (WESM), and the System Operator (SO) to launch the Visayas Supply Augmentation Auction Program (VSAAP).
While generation in the Visayas may not be adequate; additional generation may be obtained from customers with embedded generators as a way to address the power situation, said Energy Secretary Angelo T. Reyes.
Designed to compensate fairly, the recovery cost of plant operation or load interruption, the VSAAP will be implemented by PEMC in close coordination with the SO and will be supervised by the DOE.
PEMC, together with the SO and the Electric Power Industry Participants in the Visayas, will develop dispatch scheduling and metering protocols with embedded generation and interruptible loads, Acting President Mario R. Pangilinan emphasized in a statement.
In the implementation of the VSAAP, PEMC is also expected to develop pricing and settlements systems and procedures as well as coordinate with distribution utilities (DUs) in Cebu, Negros, and Panay.
Sec. Reyes reveals that the VSAAP is a peek in to the commercial operations of WESM. However, DOE will need to take into account the level of competitive arrangements as well as other considerations to ensure consumer protection before WESM can achieve full commercial operations.
Once the WESM begins in the Visayas, all energy will be traded through the market management system which should lead to more efficient use of capacity, as well as giving the appropriate investment signals for more power generation capacity at the right time.
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