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WHOLESALE ELECTRICITY
SPOT MARKET (WESM)
OVERVIEW

11 June 2024 | Eton Centris

 WESM OVERVIEW 03

AFTER THE PRESENTATION

The participants will have learned:

▪ The overview of the power industry and the legal basis for the establishment of the
Wholesale Electricity Spot Market (WESM)

▪ The guiding principles and basic operation of the WESM from scheduling and pricing
up to settlement

▪ The relevant market manuals and the market information website that serve as guide
for market members

▪ Updates on the electricity market

 WESM OVERVIEW 04

OUTLINE

01 BACKGROUND

02 WESM SCHEDULING, PRICING AND SETTLEMENT

03 MARKET MANUALS AND MARKET INFORMATION WEBSITE

04 MARKET UPDATES
01 BACKGROUND
In this section, we will discuss:
› What is the WESM?
› How electricity is delivered?
› How electricity is traded?
› What is the price determination methodology (PDM)?
› Guiding principles of WESM
 WESM OVERVIEW 6

INDEPENDENT ELECTRICITY MARKET OPERATOR OF THE PHILIPPINES

ROLES AND RESPONSIBILITIES

CENTRAL REGISTRATION BODY

MARKET RETAIL MARKET
TRADING (Luzon & Visayas)
NODE
REGISTRATION
WHOLESALE ELECTRICITY SPOT MARKET
CO-OPTIMIZED ENERGY and RESERVE
MARKET
(Luzon, Visayas, and Mindanao)

REGISTRATION CUSTOMER SWITCHING

GE P
Wholesale
DEMAND FORECASTING, Electricity METERING AND SETTLEMENT
PRICING AND SCHEDULING Spot Market

METERING AND SETTLEMENT

 Wholesale: Pertains to large quantities / volumes.

WESM
Electricity: Unique commodity being traded.

Spot: Transactions settled are only those that are not covered by contracts.

Market: A venue for buying and selling (trading) electricity.

 BACKGROUND 08

WHAT IS THE WESM?

Centralized venue for trading of large-scale buyers and sellers of

electricity where price is based on the interaction of demand and supply

Established pursuant to Republic Act 9136 or the Electric Power Industry

Reform Act (EPIRA)
 BACKGROUND 09

HOW IS ELECTRICITY DELIVERED?

Transmission Lines
Power Plant (NGCP)

Electricity is traded by sellers (generators) and buyers (DU and other customers) in the
WESM prior to production and delivery.

Distribution Lines Distribution Lines

(Distribution Utility) (Distribution Utility)
Directly Connected
Customers

Embedded
Power Plants

End-Users End-Users
 BACKGROUND 010

HOW IS ELECTRICITY TRADED?

1 Generators submit
energy offers online 2 The Market Operator
(MO), IEMOP, matches 3 Prices of electricity and
schedules of generators
the energy offers with are determined using the
customer demand thru ERC-approved Price
the Market Management Determination
System (MMS) Methodology (PDM)
 BACKGROUND 011

WHAT IS THE PDM?

PRICE DETERMINATION
METHODOLOGY
A market manual approved by the Energy
Regulatory Commission (ERC)

It ensures that the market design principles and

characteristics of WESM are achieved

Provides for the following methodologies:

› Pricing and Settlement of Energy Transactions
› Prices in cases of special pricing conditions
(e.g., market suspension)
› Settlement calculations
 BACKGROUND 12

WHAT ARE THE GUIDING PRINCIPLES OF WESM?

Gross Pool

Locational Marginal Pricing (LMP)

Net Settlement

Energy and Reserve Co-optimization

Demand Side Bidding*

Self-Commitment

*Not yet implemented

 BACKGROUND 13

GUIDING PRINCIPLES
OF WESM

GROSS POOL
All energy is traded through the WESM (i.e., mandatory
market) regardless of whether the trading participant is:
› Fully Contracted
GENERATOR ENERGY OFFER FOR GENERATOR
› Partially Contracted
TRADING FULL CAPACITIES DISPATCH
› Merchant PARTICIPANTS SCHEDULING
 BACKGROUND 14

GUIDING PRINCIPLES
OF WESM

NET SETTLEMENT Spot Quantity

Settled based on
WESM prices
Only Spot Quantities are settled at market price
(i.e., LMP) Total Energy
Generated or Netted out of WESM
Consumed and settled outside
Bilateral
(based on by counterparties
Note: Contract
meter reading) based on their
Spot Quantities are the energy (in MWh) not Quantity
contract price
covered by bilateral contracts between generators
and customers.
 BACKGROUND 15

GUIDING PRINCIPLES LMP at Market Trading Node

OF WESM 3.639
(PhP/kWh)

As of billing
LOCATIONAL MARGINAL PRICING 3.645 month May, there
(LMP) are 1020 market
3.660
3.670 trading nodes in
Marginal price is computed at each node or
location in the power system to reflect cost of the WESM
transmission line loss or congestion, or both. 3.640

3.908
3.760

LOCATIONAL MARGINAL PRICE =

3.895 3.740
SYSTEM MARGINAL PRICE +
COST OF LOSS + 2.802
COST OF CONGESTION 3.207
4.005
3.208

3.125

3.005
 BACKGROUND 16

GUIDING PRINCIPLES
OF WESM
Reserve With Co-Optimization
Capacities

ENERGY AND RESERVE CO-

OPTIMIZATION* Total
Energy and reserve schedules are jointly determined Capacities
(Energy + Reserve)
under a single solution

Advantages of Co-optimization:
› All available capacities can be seen by the WESM Co-optimization of
› Determination of optimal schedules and prices Energy and Reserve
between energy and reserves with the least Capacities
overall cost
› Mitigate artificial under-generation

*Started on Jan 26, 2024

 BACKGROUND 17

GUIDING PRINCIPLES
OF WESM

(P/MWh)
Bids to Buy

DEMAND SIDE BIDDING

Market
Loads may submit maximum price that Clearing
they are willing to pay. Price

Offers to Sell

(MW)

Dispatch Schedule Unscheduled

**Not being exercised in the market

 BACKGROUND 18

GUIDING PRINCIPLES
OF WESM

SELF-COMMITMENT
Trading participants are responsible for the
management of their technical operations, unit
commitment decisions and other market risks
through submission of offers to the WESM
TRADING
ENERGY OFFER
PARTICIPANT
 BACKGROUND 19

SUMMARY

• WESM is established by virtue of Sec. 30 of Republic Act 9136, otherwise known as

the Electric Power Industry Reform Act (EPIRA)

• The pricing and settlement for uncontracted energy and reserves is defined by the
Price Determination Methodology approved by ERC

• The WESM is guided by the following principles: Gross Pool, Locational Marginal
Pricing, Net Settlement, Demand Bidding and Self-commitment
02 WESM SCHEDULING,
PRICING AND SETTLEMENT
In this section, we will discuss:
› The trading process
› Merit ordering process on generation offers
› Locational marginal pricing and its components
› Dispatch implementation on normal and emergency conditions
› Overview of settlement process and trading amount calculation
› Billing timeline
 SCHEDULING, PRICING, AND SETTLEMENT 21

TRADING PROCESS OVERVIEW

Trading Participant Market Operator System Operator

Market Network Model Demand Forecast

Offers and Bids Real-Time System Status

Individual Schedules

All Schedules

Market Management
System

MO will process these inputs to

produce a security-constrained
economic dispatch schedules and
prices.
 SCHEDULING, PRICING, AND SETTLEMENT 22

MERIT ORDERING PROCESS

PLANT OUTAGE

MERIT ORDERING DECREASED DEMAND

PRICE
The process of ranking generation (P/MWH)
capacities from the cheapest offer to the
highest offer. DEMAND

OFFERS TO SELL
MARKET CLEARING PRICE

MARKET CLEARING PRICE

MARGINAL
PLANT

QUANTITY
(MW)
 SCHEDULING, PRICING, AND SETTLEMENT 23

MERIT ORDERING PROCESS

MERIT ORDERING PRICE

(P/MWH)
WITH PRICE TAKERS

The process of ranking generation

capacities from the cheapest offer to the DEMAND
OFFERS TO SELL
highest offer.
MARKET CLEARING PRICE

Price-takers (Self-Scheduled Generators)

include the following:
• Must-Dispatch Generators – Solar,
Wind, r-o-r hydro (FiT or non-FiT)
• Priority Dispatch Generatrors – FiT MARGINAL
PLANT
Biomass
• Non-scheduled Generators – Small PRICE TAKERS

power plants QUANTITY

(MW)
 SCHEDULING, PRICING, AND SETTLEMENT 24

DETERMINATION OF PRICES AND SCHEDULES

Transmission
EXAMPLE System

Offers to Sell
Generator Offers Demand Forecasted Demand

GEN 200 MW
200 MW
A @ P 5.0 / kWh Price
(P/MWh)
L
A

GEN 100 MW
D
B @ P 2.0 / kWh
L 100 MW
E

GEN 300 MW B
Marginal
C @ P 1.0 / kWh C Plant
L 250 MW
Quantity (MW)
GEN 150 MW
@ P 3.5 / kWh Scheduled to dispatch Unscheduled
D 550 MW
Other considerations: transmission system
limitations, real-time system status
GEN 50 MW
E @ P 3.0 / kWh Generators are dispatched according to their offer
price from the cheapest to the most expensive
 SCHEDULING, PRICING, AND SETTLEMENT 25

DETERMINATION OF PRICES AND SCHEDULES

Transmission
EXAMPLE System

Offers to Sell
Generator Offers Demand Forecasted Demand

GEN 200 MW
200 MW
A @ P 5.0 / kWh Price
(P/MWh)
Market Clearing Price L
A

GEN 100 MW
D
B @ P 2.0 / kWh
L 100 MW
E

GEN 300 MW B
Marginal
C @ P 1.0 / kWh C Plant
L 250 MW
Quantity (MW)
GEN 150 MW
@ P 3.5 / kWh Scheduled to dispatch Unscheduled
D 550 MW
Other considerations: transmission system
limitations, real-time system status
GEN 50 MW
E @ P 3.0 / kWh The Market Clearing Price (MCP) is set by the offer
price of the plant necessary to serve the demand
 SCHEDULING, PRICING, AND SETTLEMENT 26

LOCATIONAL
MARGINAL PRICING
GEN D
P 3,500 / MWh

GEN D
SMP = P3,500/MWh Metro Manila
P 3,510 / MWh
South Luzon
P 4,520 / MWh

Congestion

LMP in South System Cost of Cost of

= + +
Luzon Marginal Price Loss Congestion

= 3,500 + 300 + 1,000

LMP in South Luzon = P4,800/MWh

 WESM SCHEDULING, PRICING, AND SETTLEMENT 27

DETERMINATION OF PRICES AND SCHEDULES

Locational Marginal Pricing (LMP)

System Marginal Price System Demand

Price (P/MWh)
(SMP) – The price set
by the marginal System Marginal Price
generator scheduled in
any interval or period.
G4
G3
G2
G1
Quantity (MW)
 SCHEDULING, PRICING, AND SETTLEMENT 28

LOCATIONAL MARGINAL PRICING

COST OF LOSSES

P 3,520 for every 50kg P 3,500 for every 50kg

Metro Manila Baguio City

Cost of Delivery = P 20 per 50kg

The cost of transporting the commodity (e.g. gas, toll) represents the cost of losses.
 SCHEDULING, PRICING, AND SETTLEMENT 29

LOCATIONAL MARGINAL PRICING

COST OF CONGESTION
Constraint: NLEX was damaged
and Baguio can not serve all of
P 4,520 for every 50kg P 3,500 for every 50kg
Metro Manila’s demand

Metro Manila
Baguio City
Additional Cost Resulting from
Constraint = P 1,000 The additional cost of sourcing the
Metro Manila would have to
source from another place:
commodity from more expensive
sources due to constraints
P 4,500 for every 50 kg represents the cost of congestion.

Quezon
 SCHEDULING, PRICING, AND SETTLEMENT 30

DISPATCH SCHEDULE IMPLEMENTATION

NORMAL CONDITION EMERGENCY CONDITION

MO submits resulting SO dispatches the
generator schedules generators based on MARKET INTERVENTION MARKET SUSPENSION
to NGCP IEMOP’s submission (ERC)
(MO OR SO)

Electricity is produced • Power system failure • Natural calamities

by generators • SO system failure • National or international
• MO system failure security emergency

The DUs, participating in

the WESM as wholesale
customers, distribute
electricity to the end-
users. IMPACT
• System Operator handles scheduling and dispatch
• Administered prices are used
Electricity is consumed by
customers
 SCHEDULING, PRICING, AND SETTLEMENT 31

SPECIAL PRICING MECHANISMS

ADMINISTERED PRICE (AP)

• During natural calamities, significant outages, market system failure
• Prices are based on historical data

PRICE SUBSTITUTION METHODOLOGY (PSM)

• During instances of extreme nodal price separation (“spring washer effect”) due to congestion
• Based on bids and offers only (no transmission constraints)

MUST RUN UNIT (MRU) COMPENSATION

• For specific generators to address local problems such as low voltage or congestion
• Based on market price with additional compensation

SECONDARY PRICE CAP (SEC)

• Mitigating measure for sustained high market prices
• Based on the approved Secondary Price Cap, currently at P 6,245 / MWh
 SCHEDULING, PRICING, AND SETTLEMENT 32

MARKET RUNS

Week-Ahead Projections (once a day)

Hourly projections

D D+1 D+2 D+3 D+4 D+5 D+6 D+7

Day-Ahead Projections (hourly)

Before 1200H 1200H onwards
Hourly projections Hourly projections

D D+1 D D+1

Hour-Ahead Projections (every five minutes)

Per dispatch interval (DI) projections

DI DI+5m DI+10m DI+15m … DI+50m DI+55m DI+60m

Real-Time Dispatch (every five minutes)

Per dispatch interval (DI)

DI DI+5m DI+10m DI+15m … DI+50m DI+55m DI+60m

 SCHEDULING, PRICING, AND SETTLEMENT 33

SETTLEMENT PROCESS OVERVIEW

Generator Market Operator Metering Services Provider

Determination of
Spot Quantities
and its
BCQ Declaration equivalent PhP amount
Bilateral
Contract Metered Quantity
in MWh

Billing Statement

Customer Spot Settled based on WESM

20 MWh
prices
Quantity
Total Energy
Generated or
BCQ Confirmation Consumed
(based on Bilateral Netted out of WESM
and settled outside by
metering data) Contract counterparties based
80 MWh

100 MWh Quantity on their contract price

Billing Statement
 SCHEDULING, PRICING, AND SETTLEMENT 34

SETTLEMENT AMOUNT CALCULATION

Per dispatch interval (5 minutes):

Gross Energy Energy Trading Amount =

Settlement Quantity
(GESQ) (GESQ × FEDP) – (BCQ × FEDPS)
Gross Amount Bilateral Amount
Gross trading amount of Equivalent trading amount of its
participant at its node bilateral contract at its specified
reference node
Final Energy
Dispatch Price GESQ = 103 MWh BCQ = 90 MWh
(FEDP) FEDP = P 3,000 / MWh FEDPs = P 3,000 / MWh

Energy Trading Amount (ETA)

= 103 × 3,000
Bilateral Contract less
Quantities (BCQ) 90 × 3,000
= 309,000 – 270,000

ETA = 39,000

Note: GESQ = MQ with Site Specific Loss Adjustment (SSLA)

 SCHEDULING, PRICING, AND SETTLEMENT 35

BILLING TIMELINE

CALENDAR DAYS
Window for reporting errors in Preliminary
Settlement Statement

25 26 27 28 29 30 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

Preliminary Settlement Deadline of payments

Statements to the Market Operator
Seven (7) calendar days Every 25th of the following
after cut-off period month or following
working day

CUT-OFF OF Final Settlement Statements Payment to Trading Participants

BILLING PERIOD Eleven (11) calendar days after One (1) calendar day after deadline of
Every
25th day of the release of preliminary settlement collection
month 26 25 statement

Ex: February Billing Period is:

from 26 Jan to 25 Feb YYYY
 SCHEDULING, PRICING, AND SETTLEMENT 36

SUMMARY

• The WESM schedules generators in a process called ‘Merit Ordering’ in order to meet
projected demand requirement for every interval

• The WESM uses Locational Marginal Pricing (LMP) which considers the effects of losses and
congestion

• Dispatch schedules are provided to the System Operator (SO) for implementation

• WESM trading amounts are calculated every 5-minute interval and only covers the quantities
that are not covered by power supply contracts

• Payment and collection for WESM transactions (sales or purchases) happens on a monthly
basis
03 MARKET MANUALS AND
MARKET INFORMATION
WEBSITE
In this section, we will discuss:
› The different market manuals that will serve as guide for market participants regarding the
different WESM processes
› The market information website where participants and the public can monitor and download
market data and reports
 MANUALS AND WEBSITE 38

WESM MANUALS

WESM RULES
METERING, BILLING AND
REGISTRATION SCHEDULING AND PRICING OTHER REFERENCES
SETTLEMENTS

Registration, Suspension Price Determination Methodology Market Operator

and De-Registration Criteria Information Disclosure
and Procedures Load Forecasting Metering Standards and and Confidentiality Manual
Methodology Procedures
Market Surveillance,
Market Network Model
Dispatch Protocol Billing and Settlement Compliance and
Development and
Enforcement Market
Maintenance –Criteria and
Manual
Procedures Constraint Violation Management of Net
Coefficients (CVC) and Settlement Surplus
Pricing Re-runs Financial Penalty Manual

Note: This is a non-exhaustive list

 MANUALS AND WEBSITE 39

MARKET INFORMATION WEBSITE

IEMOP WEBSITE
[Link]
 MANUALS AND WEBSITE 40

MARKET OPERATIONAL
[Link]
OPERATIONAL HIGHLIGHTS
COO REPORT 041

System [26 April 2024 to 25 May 2024]

20,631 MW SUPPLY AVERAGE SUPPLY AVERAGE DEMAND AVERAGE PRICE

PEAK 0.4% 19,648 MW 15,688 MW 8.22 P/KWH

19,246 MW DEMAND
05/13/2024 14:30
68 MW 2.3% 19,199 9.1 % 14,375 19.1% 6.90
33.72 PHP/KWH PRICE 449 MW 1,313 MW 1.32 PHP/KWH
 COO REPORT 042

OPERATIONAL HIGHLIGHTS
System Wide Supply, Demand, and Price1 [26 February 2024 to 25 May 2024]

AVERAGE

PERIOD SUPPLY DEMAND RESERVE3 MARGIN PRICE4

COVERED (MW) (MW) (MW) (MW) (PHP/KWH)
Mar 2024 Billing 18,948 13,206 1,876 3,866 5.53
Apr 2024 Billing 19,199 14,376 1,146 3,677 6.90
May 2024 Billing 19,648 15,688 2,093 1,867 8.22

3Margin = Supply – (Demand + Reserve Requirement) ± HVDC

1 Daily average values are shown on the graph
2 Reserve 4Intervals are applied with a Secondary Price Cap (SPC)
Requirement (Regulating, Contingency & Dispatchable)
OPERATIONAL HIGHLIGHTS
COO REPORT 043

Luzon [26 April 2024 to 25 May 2024]

14,862 MW SUPPLY AVERAGE SUPPLY AVERAGE DEMAND AVERAGE PRICE

PEAK 0.1% 14,003 MW 11,369 MW 8.28 P/KWH

14,000 MW DEMAND
05/13/2024 14:30 5.3% 13,308 10.3% 10,310 24.8% 6.63
33.51 PHP/KWH 11 MW 695 MW 1,059 MW
PRICE 1.65 PHP/KWH
OPERATIONAL HIGHLIGHTS COO REPORT 044

Luzon Supply, Demand, and Price1 [26 February 2024 to 25 May 2024]

AVERAGE1 MIN MAX

SUPPLY DEMAND RESERVE REQ’T2 VIS to LUZ LUZ to VIS HVDC MARGIN3 PRICE4 MARGIN
PERIOD COVERED IMPORT
(PHP/KW
(MW) (MW) (MW) FLOW (MW) FLOW (MW) (MW) (MW) (MW)
H)
Mar 2024 Billing 12,838 9,385 1,312 314 -62 252 2,393 5.62 1,041 3,973
Apr 2024 Billing 13,307 10,310 1,359 234 -139 95 1,733 6.63 364 4,160
May 2024 Billing 14,003 11,369 1,458 204 -128 76 1,252 8.28 -84 2,355

3Margin = Supply – (Demand + Reserve Requirement) ± HVDC

1 Daily average values are shown on the graph
2 Reserve 4Intervals are applied with a Secondary Price Cap (SPC)
Requirement (Regulating, Contingency & Dispatchable)
OPERATIONAL HIGHLIGHTS
COO REPORT 045

Visayas [26 April 2024 to 25 May 2024]

2, 602 MW SUPPLY AVERAGE SUPPLY AVERAGE DEMAND AVERAGE PRICE

PEAK 3.8%
2,409 MW 2,168 MW 8.81 PHP/KWH
2,679 MW DEMAND
05/21/2024 14:20 98 MW 2.6% 2,347 8.3% 2,002 0.9% 8.73
6.37 PHP/KWH PRICE 61MW 166 MW 0.08 PHP/KWH
OPERATIONAL HIGHLIGHTS Market Outcome 046

Visayas Supply, Demand, and Price1 [26 February 2024 to 25 May 2024]

AVERAGE MIN MAX

NET
VISLUZ MINVIS
SUPPLY DEMAND RESERVE REQ’T2 VIS to LUZ LUZ to VIS IMPORT MARGIN3 PRICE4 MARGIN
PERIOD COVERED EXPORT IMPORT
(MW) (MW) (MW) FLOW (MW) FLOW (MW) BOTH (MW) (PHP/KWH) (MW)
(MW) (HVDC)
HVDCs
Mar 2024 Billing 2,414 1,867 364 -314 62 -252 325 73 256 6.38 143 336
Apr 2024 Billing 2,349 2,002 358 -234 139 -95 247 152 141 8.73 -7 404
May 2024 Billing 2,409 2,168 363 -204 128 -76 226 150 28 8.81 -104 228

3Margin = Supply – (Demand + Reserve Requirement) ± HVDC

1 Daily average values are shown on the graph
2 Reserve 4Intervals are applied with a Secondary Price Cap (SPC)
Requirement (Regulating, Contingency & Dispatchable)
OPERATIONAL HIGHLIGHTS
COO REPORT 047

Mindanao [26 April 2024 to 25 May 2024]

3,368 MW SUPPLY AVERAGE SUPPLY AVERAGE DEMAND AVERAGE PRICE

PEAK 2.6% 3,235 MW 2,152 MW 7.26PHP/KWH

2,711 MW DEMAND
05/21/2024 13:30 3,553 4.3% 2,063 13% 6.43
6.50 PHP/KWH
69 MW 8.9%
PRICE 316 MW 89 MW 0.84 PHP/KWH
OPERATIONAL HIGHLIGHTS COO REPORT 048

Mindanao Supply, Demand, and Price1 [26 February 2024 to 25 May 2024]

AVERAGE1 MIN MAX

RESERVE MINVIS
SUPPLY DEMAND MARGIN3 PRICE4 MARGIN
PERIOD COVERED REQ’T2 HVDC
(MW) (MW) (MW) (MW) (MW) (PHP/KWH) (MW)
Mar 2024 Billing 3,696 1,955 239 -325 1,177 4.21 760 1,540
Apr 2024 Billing 3,551 2,063 248 -247 993 6.43 329 1,817
May 2024 Billing 3,235 2,152 272 -226 585 7.26 354 859

3Margin = Supply – (Demand + Reserve Requirement) ± HVDC

1 Daily average values are shown on the graph
2 Reserve 4Intervals are applied with a Secondary Price Cap (SPC)
Requirement (Regulating, Contingency & Dispatchable)
Average HVDC Power Exchange RE Market Share Retail Market Share
26 April 2024 to 25 May 2024
March

April
LUZON TO VISAYAS
128 MW
39.09% of the time

VISAYAS TO LUZON May

204 MW
59.13% of the time
10.49 TWh
TOTAL CUSTOMER
Generation Mix TRANSACTIONS
System
Mar-24 Apr-24 MaY-24
TYPE

NON-RE
GWh % GWh % GWh %
VISAYAS TO MINDANAO COAL 5,548 62.1 6,511 62.7 6,866 62.8
NATURAL GAS 1,219 14 1,691 16 1,955 18
4 MW
OIL-BASED 71 0.8 198 1.9 242 2.2
3.55% of the time
GEOTHERMAL 889 10.0 889 8.6 862 7.9
HYDRO 570 6.4 440 4.2 364 3.3
RE

BIOMASS 92 1 90 1 87 1
MINDANAO TO VISAYAS
WIND 140 1.6 65 0.6 71 0.6
271 MW SOLAR 309 3.5 391 3.8 381 3.5
96.40% of the time PUMP 78 0.9 95 0.9 89 0.8
ES

BATTERY 18 0.2 22 0.2 20 0.2

S

TOTAL 8,934 100 10,390 100 10,937 100

 WESM Registered Capacities
WESM Registration Data as of 30 May 2024 | Luzon, Visayas, and Mindanao
*ESS refers to Energy Storage Systems

Capacity
(MW) Scheduled Generators Renewable Energy ESS*

Natural Oil Hydro Geo- Biomass Solar Wind Battery &

Coal Gas Based thermal Pump
Region Storage Total

1,130 20,436
8,787 3,723 1,741 1,838 800 183 1,769 466
Luzon (+50) (+50)
43.0% 18.2% 8.5% 9.0% 3.9% 0.9% 8.7% 2.3% 5.5% 100.0%

1,330 0 433 53 850 198 410 104 100 3,478

Visayas
38.2% 0.0% 12.4% 1.5% 24.4% 5.7% 11.8% 3.0% 2.9% 100.0%

2,266 0 652 1,115 105 52 67 0 100 4,356

Mindanao
52.0% 0.0% 15.0% 25.6% 2.4% 1.2% 1.5% 0.0% 2.3% 100.0%
1,330 28,270
12,382 3,723 2,825 3,006 1,755 433 2,246 570
Total (+50) (+50)
43.8% 13.2% 10.0% 10.6% 6.2% 1.5% 7.9% 2.0% 4.7% 100.0%
 052

REGISTRATION DEMOGRAPHICS
Records as of May 2024 | Luzon, Visayas and Mindanao

450 WESM Participants 2,188 RCOA Participants 422 GEOP Participants

352 DU Connected End-user Customer

212 Generation Companies 1,994 Contestable Customers
99 Electric Cooperatives 70 Retail Metering Services 36 GEOP Metering Services Provider
52 Directly Connected Customers Provider
17 Renewable Energy (RE) Supplier
25 Private DUs and Local Gov’t Utilities 41 Directly Connected
Contestable Customer 1 Local Retail Electricity Supplier
42 Ancillary Service Provider
27 Supplier of Last Resort 16 Supplier of Last Resort (SOLR)
1 Ancillary Service Buyer
41 Retail Electricity Supplier
19 Wholesale Metering Services Provider
15 Local Retail Electricity Supplier
04 HISTORICAL EVENTS
AND MARKET ROADMAP

In this section, we will discuss:

› The chronology of events that took place on the Electricity Market
› The market development roadmap that will happen for the next years
 WESM FUNDAMENTALS 15

WESM ESTABLISHMENT
IMPLEMENTATION TIMELINE
Central Scheduling of
Energy and Reserves
WESM Enhanced WESM
Integration of
Variable Renewable
Design and
WESM Central
WESM
EPIRA Visayas WESM Energy Resources Scheduling in
EPIRA-IRR Commercial Mindanao
WESM Rules Operations Enhanced WESM GEOP
PEMC Incorporation Design Amendments Commencement
2010
2002-03 2015-16 2021 2023
WESM

2001 2004 / 2013 2018 2022 2024

Electric Power 2006 Retail
Competition and Transition to the Reserve
Industry Reform Act Open Independent WESM Market
WESM Market
(RA 9136) Access for Luzon Market Operator Mindanao
Management
System (MMS) and Visayas (IMO) Commercial
Philippine Grid Code Operations
Project
Luzon WESM
Commercial
Operations
Market Development Roadmap
55

Retail
Green Energy
Competition
Option Program
(RCOA)
(GEOP) Renewable Retail Household-Level
Energy Market Aggregation Retail Competition

EPIRA

2001 2006 2010 2014 2022 2023 2024 2025-2026

Mindanao Reserve RCOA / GEOP Electricity Capacity

Luzon Visayas
WESM Market Mindanao Forwards Market
WESM WESM Market
 MANUALS AND WEBSITE 56

SUMMARY

• The market operates under the principles and provisions of the WESM Rules. The WESM
Rules is supported by the different market manuals that serve as guide for market
participants in understanding different market processes from registration, scheduling,
pricing, metering, billing up to settlement

• The Market Information Website is being maintained by the Market Operator providing the
market participants and the public real-time monitoring of market results and downloadable
historical market data and reports that will lead to a better understanding of the market and
improving business decisions.
[Link] | INFO@[Link] | @IEMOPINFO