THE Independent Market Operator of the Philippines (IEMOP) observed an improvement in its peak demand projections following the launch of its five-minute wholesale electricity spot market (WESM) last month.
“In our old system, our day-ahead projections only had an accuracy of roughly around 80%. Right now, our accuracy for a day-ahead perspective is at around 94.7% in Luzon. In Visayas, its 92% and in Mindanao, it’s actually faring much better at 96%. These are the improved market projections we saw,” IEMOP Manager of Operations Planning and Modeling Edward I. Olmedo told reporters in a virtual briefing on Friday, referring to the peak forecast accuracy levels recorded from June 27 to July 8.
Better forecasts allow market participants to access accurate estimates of the changes in prices and conditions for the next day, he said.
“Having improved market projections will allow (participants) to make better decisions in their commitments in terms of generation…and requirements,” Mr. Olmedo said.
The IEMOP rolled out the enhanced WESM design and operations (EWDO) setup in Luzon and the Visayas on June 26. The EWDO sought to implement various rule changes to the WESM, which reduced the time between scheduling and dispatch of power to five minutes, among others.
In a separate statement issued on its website, the IEMOP said with the shift to a new market design, the WESM is now “at par with the electricity markets of developed countries including the United States and Australia.”
The shift to a five-minute dispatch model also made the Philippine spot market “one of the technologically advanced markets based on global industry standards”, it said.
The market operator on Friday said the average spot market price last month hit P6.53 per kilowatt-hour (kWh), down from the P7.66 per kWh recorded in May.
Meanwhile, the effective settlement spot price for June declined by around 13% to P7.25 per kWh from P8.31 the month prior. — Angelica Y. Yang