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Ee2333l Wesm

The document explains the concept of commodities, specifically focusing on electricity as a commodity that is produced and consumed in real-time, requiring a balance between supply and demand. It details the trading process in the Wholesale Electricity Spot Market (WESM), where generators submit energy offers that are matched with customer demand by the Market Operator. The objective is to maximize the value of dispatched load while minimizing costs, with prices determined through an approved methodology.

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RONALD LUIS D. BOQUIREN
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30 views35 pages

Ee2333l Wesm

The document explains the concept of commodities, specifically focusing on electricity as a commodity that is produced and consumed in real-time, requiring a balance between supply and demand. It details the trading process in the Wholesale Electricity Spot Market (WESM), where generators submit energy offers that are matched with customer demand by the Market Operator. The objective is to maximize the value of dispatched load while minimizing costs, with prices determined through an approved methodology.

Uploaded by

RONALD LUIS D. BOQUIREN
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

EE2333L: WESM

Wholesale Electricity Spot Market


What is a Commodity?

➢ In economics, a commodity is defined as a tangible good that can be bought and sold or exchanged
for products of similar value.

➢ Like other classes of assets such as stocks, commodities have value and can be traded on open
markets, and can fluctuate in price according to supply and demand.

➢ A commodity is a good that is usually produced and/or sold by many different companies or
manufacturers. It is uniform in quality between companies that produce and sell it. One cannot tell
the difference between one firm's goods and another
Characteristics of Electricity

➢ Electrical energy is produced and consumed at the same time. Real-time balance must be
maintained at almost any cost.

➢ The marginal cost of producing electricity (i.e. the spot price) varies over the course of the day due
to constantly changing load behavior

➢ In order for the system to function securely, the power system requires a set of ancillary services (i.e.
reserves)
➢ A requirement for restructuring the industry

➢ A shift from cost-based to market-based pricing

➢ A venue for the buying and selling bulk electricity

➢ A mechanism for wholesale supply competition


How is Electricity Traded in the WESM?

• Generators submit online hourly PEMC, the Market Prices of electricity traded
energy offers thru the Market Operator (MO), matches in the WESM are
Management System (MMS). the offers of generators determined based on the
with the demand of ERC-approved Price
• Offers are submitted by customers thru the MMS. Determination
accessing the Market Participant Methodology.
Interface of the MMS through
the Generator’s computers
installed with digital certificates.!
OBJECTIVE: Maximize the value of dispatched load while minimizing cost of dispatched generation,
dispatched reserves, and constraint violations
SUBJECT TO: Constraints – generating units, transmission network, and system requirements
13.50
13.00

12.00

11.00 11.00

10.00
9.50
9.00

8.00 8.00

7.00

6.00 6.00

5.00
4.50
4.00 4.00

3.00
2.50
2.00
1.50
1.00

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,000

Hourly Demand* (MW)


13.50
13.00

12.00

11.00 11.00

10.00
9.50
9.00

8.00 8.00

7.00

6.00 6.00

5.00
4.50
4.00 4.00

3.00
2.50
2.00
1.50
1.00

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,000

Hourly Demand* (MW)


Demand* = 6,100 MW
13.50
13.00

12.00

11.00 11.00

10.00
9.50
9.00

8.00 Clearing Price = P8.00 / kwh 8.00

7.00

6.00 6.00

5.00
4.50
4.00 4.00

3.00
2.50
2.00
1.50
1.00

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,000

Hourly Demand* (MW)


Demand* = 6,100 MW

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