DOE pushes for wholesale electricity spot market in Mindanao  

Feb. 21, 2017

DAVAO CITY, Philipines — The Department of Energy on Monday said the establishment of Wholesale Electricity Spot Market in Mindanao gained public support after the agency conducted two separate consultations this month in Cagayan de Oro and Zamboanga City, respectively.

“The consultation participants were united in expressing confidence that with a stable and competitively-priced energy source, Mindanao can experience and sustain an economic boom under the Duterte Administration’s 10-point socio-economic program,”  DOE said in a statement.

The preparatory activities for the launch of the Wholesale Electricity Spot Market in Mindanao are being undertaken by DOE in coordination with the Philippine Electricity Market Corporation and the National Grid Corporation of the Philippines.

The energy department said that two public consultations were focused on a draft circular:  “Declaring the Launch of the Wholesale Electricity Spot Market in Mindanao and Providing for Transition Arrangements” which  governs the operation of WESM Mindanao.

The two public consultations gathered energy experts and power industry participants, as well as investors, consumers, members of the academe and other stakeholders.

DOE said the establishment of WESM in Mindanao is a high priority agenda targeting its commercial operation by June 26, 2017. The DOE is set to conduct three more public consultations in Davao City on Feb. 21, Butuan City on the 28th, and General Santos City on March 7.

“The objective of the public consultations is to solicit the views of all stakeholders on how to improve the circular which will lay down the policies for the establishment of WESM Mindanao,” it said.

In 2016, Mindanao had an additional generating capacity of 782 megawatts and is expecting the commercial operations of additional 1,208 MW this year.

Despite the additional supply, there remains power interruptions in Mindanao especially in the franchise areas of distribution utilities which do not have sufficient power supply agreements to cover their increasing demand for electricity.

According to DOE, in the absence of such contracts, power generation companies are hesitant to operate their plants without an approved supply contract or any compensation mechanism duly approved by the Energy Regulatory Commission.

“Thus, the establishment of the WESM will serve as the mechanism to efficiently tap the excess capacities in the area to avoid rotating brownouts and ensure 24-hours continuous electricity service,” DOE said. (

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