The commercial implementation of the Wholesale Electricity Spot Market (WESM) in Mindanao may finally happen next year.

“Latest timeline is middle of next year,” said Francis Saturnino C. Juan, president of Independent Electricity Market Operator of the Philippines (IEMOP), operator of the WESM.

WESM’s commercial run in Mindanao was supposed start midyear but was later pushed to October this year.

WESM started commercial operations in the Luzon grid in June 2006 and in December of 2010 in the Visayas grid, while the intricacies of the Mindanao power industry delayed the establishment of WESM Mindanao.

The Department of Energy (DOE) launched WESM in Mindanao in June 2017, although it never became fully operational.

Juan said trial operations are being conducted as part of the preparations, which include software audit of the new market system.

“We’re doing trial operations already, conducting trainings and workshops with the market participants in Mindanao, attending DOE-organized meetings for the readiness assessment and resolution of issues,” said Juan when asked for the preparations being undertaken. “Regarding the market system to be used, the New Market Management System, we’re in the final stretch of the software certification audit. We’re also registering participants already.”

In recent years, the Mindanao grid suffered rotating brownouts due to generation deficiency. However, the entry of large generators significantly increased supply, now creating a surplus and prompting the extension of WESM operations to Mindanao.

“WESM Mindanao will enable a transparent and fair mechanism to bring in more competition, more investors and a sustainable business climate that will eventually redound to empowering consumers from Mindanao of their power of choice,” Energy Secretary Alfonso G. Cusi said.