PEMC takes part in the ASEAN ADB Energy Transition Dialogue

The Philippine Electricity Market Corporation (PEMC), the governing body of the Wholesale Electricity Spot Market (WESM), emphasized the gains from implementing “must dispatch” and “priority dispatch” for renewable energy (RE) generators as one of the measures toward supply diversification to address power supply concerns.

In a dialogue hosted by the Asian Development Bank (ADB), participants from ASEAN and overseas discussed energy transition, focusing on RE and energy efficiency. The dialogue discussed the international trends in the power sector and the Cambodian power sector’s recent efforts in scaling– up RE.

PEMC’s Corporate Planning and Communications (CPC) Department Head, Mr. Clares Loren C. Jalocon, participated in the dialogue and discussed the efforts in the Philippines to bring in RE. “The  acknowledgment of preferential dispatch generating units in the Philippine WESM can be recognized as a pioneering effort in Asia. This effort yielded an addition of 50% to the total RE capacity participating in the market after the first year of its implementation. The registered capacity of preferential dispatch resources in the WESM currently stands at 1,800 MW from its meager level of 350 MW prior to operationalizing preferential dispatch.”. 

To further strengthen and uphold PEMC’s efforts in ensuring the WESM’s significant contribution to the clean energy transition in the Philippines, it recently signed a Partnership Agreement with the United Nations Office for Project Services through the Southeast Asian Energy Transition Partnership (ETP). This partnership will usher in the implementation of an energy transition roadmap focused on introducing market mechanisms and enhancements promoting participation in the market of renewable and sustainable technologies while encouraging supply stability and diversification.

The Partnership will be initiated through a study on the participation of battery and other energy storage systems (ESS) in the electricity market bringing in international experience to the country’s energy landscape by enabling ESS to contribute to ensuring the grid’s security and reliability despite the influx of cleaner energy technologies that are variable or intermittent.

In addition, the study will also introduce protocols for the coordinated operations of the ESS within the WESM while giving due regard to effective governance on their market participation.

Jalocon also shared technological advancements in the Philippine power industry through DOE and PEMC efforts such as the introduction of various policies concerning ESS to address the problem with their intermittency and stabilize the power generation from Variable Renewable Energy (VRE) resources.

In 2018, the DOE issued Department Circular No. DC2018-08-022 on Adopting Further Amendments to the WESM Rules and Market Manuals on the Participation of Battery Energy Storage Systems (BESS) and  Pumped-Storage Units (PSU) in the WESM. This issuance arose from the WESM Technical Committee’s proposed amendments to the WESM Rules on the participation of BESS and PSU in the WESM.

Another circular was issued by the DOE in 2019, DC2019-08-0012 on Providing a Framework for Energy Storage System (ESS) in the Electric Power Industry acknowledging that the increasing penetration of the VRE resources necessitates the recognition of ESS as one of the technologies in managing intermittent operations of the VRE resources’ output in ensuring system stability.

These Circulars set the framework for the participation of BESS and PSU in the market with respect to registration, dispatch protocol, and modeling in the market network model.

PEMC recognizes and fully supports the transition to renewable energy with PEMC President Leonido J. Pulido III pointing out the need to strengthen renewable energy sources during the recently conducted virtual Solar Summit.