Republic of the Philippines

DEPARTMENT OF ENERGY
(Kagawaran ng Enerhiya)

DEPARTMENTCIRCULAR NO. DCbU . T2' NI+O

v-

AMENDING CERTAIN PROVISIONS OF ANNEX "A" OF DEPARTMENT

CIRCULAR NO. DC2O21.06.0015 ENTITLED "DECLARING THE COMMERCIAL
OPERATIONS OF ENHANCED WHOLESALE ELECTRICITY SPOT MARKET
(WESM) DESIGN AND PROVIDING FURTHER POLICIES"

WHEREAS, Sections 30 and 37(f) ot the Electric Power lndustry Reform Act
(EPIRA) provides that the Department of Energy (DOE), jointly with the electric
power industry participants, shall establish the Wholesale Electricity Spot Market
(WESM) and formulate the detailed rules governing the operations thereof;

WHEREAS, on 28 June 2002, the DOE, with the endorsement of the electric power
industry participants, promulgated the WESM Rules through Department Circular
No. DC2002-06-003;

WHEREAS, on 04 May 2017, the DOE promulgated the policies for the launching of
WESM in Mindanao including the transition guidelines through Department Circular
No. DC2017-05-0009;

WHEREAS, on 25 June 2021 , lhe DOE issued the Department

Circular No
DC2O21-06-0015 declaring the commercial operation of Enhanced WESM Design
and Operations (EWDO) effective 26 June 2021;

WHEREAS, Annex "A" of DC2021-06-0015 specified that the WESM Central

Scheduling (WCS) shall be used for the initial phase of the commercial operation of
the EWDO in Mindanao grid until 25 July 2021;

WHEREAS, on 24 July 2021, the DOE issued an Advisory extending the

implementation of WCS in Mindanao grid until further notice on the DOE's
declaration of the actual commercial operations date of the WESM in Mindanao;

WHEREAS, on 1O September 2021, the DOE, during the 32nd WESM Mindanao
Readiness Assessment, noted the Market Operator (MO) and System Operator's
(SO) observations and concerns on the implementation of the WCS in Mindanao
grid, advised the MO and SO to conduct a focused group discussion to determine
and recommend solutions to the aforementioned concerns on WCS;

WHEREAS, on 17 September 2021, the DOE conducted the focused group

discussion with the Market Operator, System Operator and Mindanao Trading
Participants to discuss and propose a solution concerning the implementation of
WCS in Mindanao grid;

Energy Center, Rizal Drive cor.34th Sheet, Bonifacio Global City, TaguiS City, Philippines 1632
Tel. No. (Trunkline) (632) 84'19-2900;
Website: httD://www.doe.sov.oh: E-mail: infb(ir)doe. uov.oh
WHEREAS, the MO submitted to the DoE the proposed amendments to the
Guidelines on WCS as formulated in consultation with the market participants in
M indanao;

WHEREAS, on the basis of the recommendations submitted by MO, the pQE

drafted a ciicular amending the WCS Guidelines and posted the same in the DOE
website on 05 October ZOll to solicit comments from the market participants and
other interested parties.

WHEREAS, the DOE, in consultation with the Market operator and in .consideration
of the comments received on the same, reviewed and finalized the proposed
amendments to the wcs Guidelines for the efficient implementation of the same;

NOW THEREFORE, in consideration of the foregoing and pursuant to its authority

under the EPIRA and the wESM Rules, the DoE hereby issues and promulgates the
.A", providing for the Guidelines on wcs under
t"ir"*irg amendments to Annex
DC2021-06-0015:

Sectionl.AmendmentstotheGuidelinesontheWEsMCentralSchedulingin
lrlina"n"o (Annex ,,A"). The following provisions under Submission of Working
Offers are hereby amended to read as:

3. PROCEDURE DURING WCS

3.1 . xxx

3.2 Submission of Working Offers

..3.2'lscheduledGeneratorsareexpectedtosubmitworkingoffersinthe
Market Management System based on their Expected Day-Ahead
Generation OutPut (DAGO).
3.2.1.1 lf the generator's WESM registered capacity is based on.its
gross tilegawatt (MW) output; then the DAGO shall be equal to
plus
the g"nef,to,'. Day-Ahead Generation Schedule (DAGS)
its station use.
S.Z.I.Z lli tne generator's WESM registered capacity is based on its MW
outpui net of its station use, then the DAGO shall be equal to
its DAGS.
3.2.1.3 The MW quantity block up to the technical Pmin shall be
offered
at the offer floor price (- P10,000.00/MWh)'
3.2.1.4 The MW quantiiy block representing the q!?ltity beyond the
Pmin up to the DAGo shall be offered at P0 00/MWh'
price for
-
3.2.1.5
- Scheduled generators shall submit their preferred offer
ittu MW quintity block beyond the DAGS up to their maximum
available caPacitY.

N' _ADOPTING FURTHER AMENDMENTS TO THE GUIDELINES ON THE WHOLESALE

Ei-rnrcnv spor-r,,rnnier pesur) cENTRAL ScHEDULING lN MINDANAo
 Figure 1. Sample Offer Profile Based on DAGS

OFFER PROTILE IN MMS.MPI

+
INFO MW QUANIITY PRICE

DAGO 100
f 30 -10,000.00
Zero Break QuantitY

Technical Pmin

MAXAVAILABIIITY'. I I20 Day-Ahead Generalion 0utput (DAG0)

120 1000.00* Maximum AvailabilitY

tBased on TP input (e.q. production cost)

Section 2. Repealing Ctause. All issuances inconsistent with the provisions of this
Circular are hereby repealed or amended accordingly'

provisions of the Department Circular No. DC2021-06-0015 not affected by this

Circular shall remain in effect.

section 3. Separability clause. lf for any reason, any section-or provision of this
Circular is declared unconstitutional or invalid, such parts not affected shall remain
valid and subsisting.

Section 4. Effectivity. This Circular shall take effect immediately following its
complete publication in at least two (2) newspapers.of general circulation and shall
remain in effect until othenryise revoi<ed. Copies thereof shall be filed with the
Register
University of the philippines Law Center - Office of National Administrative
(UPLC-ONAR).

lssued 0EC 2 1 202lat Energy Center, Bonifacio Global City, Taguig City
"n

l'^/
CUSI
ry

DEPARTMET',IT OF ENERGY

EPT CIIE:
IN REPLYNq ?LS-

il il fi mmfifi fiirfi fifi fir1fililrrr rl

THE WHOLESALE
DC-- -ADOPTING FURTHER AMENDMENTS TO THE GUIDELINES ON
euecrnrcnv spoT MARKET (WESM) CENTRAL SCHEDULING lN MINDANAO
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GUIDELINES ON THE WESM CENTRAL

SCHEDULING IN MINDANAO

23 Jttly 2021
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1. BACKGROUND

All Mindanao Generator Trading Panicipants are expected to implement the 5-minute dispatch
schedules generated from the Market Management System (MMS) during the WESIV Central
Scheduling (or WCS) period. Settlement shall be based on the existing conlractual arrangements
in Nlindanao. There shall be no settlement oftransactions in the WESM.

All Generators that are required to register in the WESNI, including those thal voluntarily
registered, shall participate in the WCS. These shall include grid-connected and embedded
generators.

2. RESPONSIBILITIES

2.'1. Generators
2.1.1. Generators shall ensure that they have access totheir generation resources in the
User lnterface of the MMS' Markel Parlicipant lnterface (MPl). For this purpose, they
shall have an updated Digital Certificate and valid user credentials.
2.1.2. Alternatively, Generators can transact in the MN,S using the MPI'S API Web Service
(optional).
2.1.3. Trading Panicipants and their counterpart plant operators shallensurethat they have
a communication protocol in place for the timely communication and coordinalion of
dispatch targels.
2.1.4. Generators shall inform the L4arket Operator on any issues and/or concerns
encountered during the WCS.

2.2. Svstem Operator

2.2.1. fhe System Operator shall ensure that its Energy Management System (EMS) is
available forlhe lvlarket Operator to capture real'time data via the lnter-Control Center
Communications Protocol (ICCP).
2.2.2. The System Operator shall submj't the input constraints inthe MMS (e.9. overriding
constraints, outages, transmission limits, reserve requirements, etc.).
2.2.3. The System Operator shall submit information on all their re-dispatch instructions to
the Market Operator.
2.2.4. The System Operator shall submit a repon to the Market Operator on their
observations on the WCS implementation.
2.2.5. The Metering Services Providers shallcontinue to submit metered quantity (MQ) data
to the Central Registration and Settlement System (CRSS). lt is provided, however,
settlements during the WCS shall be in accordance with the current contracted
arrangements in Mindanao.

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2.3. Market Operator
2.3."1. The Market Operatorshall regularly update regional demand forecasts forthe market
projections (WAP, DAP, and HAP) and for the real-time dispatch (RTD) market runs.
2.3.2. The Market Operator shall ensure that the MMS is available to provide accurate and
timely dispatch schedules to the Generators and the System Operator.
2.3.3. The Market Operator shall ensure that the Market Participant lnterface (MPl) is
always available for access by the Market Participants.
2.3.4. The Market Operator shall submit to the DOE an evaluation of fhe WCS considering
all inputs from the Generators and the System Operator.

3. PROCEDURES DURING WCS

3.1. Current Contractual Obligations and lmplementation of lnterim Mindanao Dispatch Protocol
3.1.1. All generators and cuslomers shall still perform their existing processes in
accordance with their contracts.
3.1.2. All generators and customers are still expected to perform their responsibilities as
provided for in the lnterim Mlndanao Dispatch protocol.

3.2. Submission of Working Offers

3.2.1. Scheduled Generators are expected to submit working offers in the MMS based on
their Expected Day-Ahead Generation Output (DAGO).
3.2.1 .1 lf the generator's WESM registered capacity is based on its gross MW
output, then the DAGo shall be equal to the generator's Day-Ahead
Generation Schedule (DAGS) plus its station use.
3.2.1 .2 lf the generator's WESM registered capacity is based on its MW output net
of its station use, then the DAGO shall be equal to its DAGS.
3.2.1.3 The MW quantity block up to the DAGO should be offered ar PO.OO/MWh.
3.2.1.4 Scheduled generators shall submit their preferred offer price for the MW
quantity block beyond the DAGS up to their maximum available capacity.

Figure 1 . Sample Offer Profile Based on DAGS

OFFER PROFILE IN NMMS-MPI

INFO QUANIIIY J PRICE
DAGS 100 0 0_00
ZERO PMIN

MAX AVAITABILITY 120 100 0.00 DAGO

120 4.000r MAX AVAILABILITY

'8ased on TP iopul (e g produclion cogt)

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Generators shall also consider the commitment of the technical Pmin of their
generation units when submitting offers in the MMS (i.e. may revise offers to ensure
commitmenl of schedules at least at technical Pmin).
Generators shall revise their working offers in the N/|N.4S in consideration of their in-
day re-nominations. Similar to the DAGO, in-day re-nominations shall similarly
consider its station use in revising its offers if the generator's WESN,I registered
capacity is based on its gross [,4W output.
3.2.4 During tripping of their generation units, generators shall cancel their working offers
in the MMS.
Generators can only declare up to three (3) ramp rare break quantities for their
generation unit's ramp rate profile.

3.3. Central Scheduling of Contracted Ancillary Services in the WESM

3.3.'1. Scheduled Generators that obtained a Day-Ahead Ancillary Service Schedule (DAASS)
from the System Operator shall update their working offers to include reserve offers.
3.3.2. All reserve offers should contain two offer break quantities:the first MW should be
zero,lhe next MW should be based on the DAASS (except for regulation reserve).
3.3.2..1 Regulation reserve providers shallsubmit half oftheir DAASS for regulation
up (RU), and another half for regulation down (RD).
3.3.2.2 Fot contingency and dispatchable reserve providers, their reserve offers
should be equalto their DAASS
3.3.3. The two (2) reserve offer break quantities should be offered at p0.OO/tvtwh.
3.3.4. Generators may revise their reserve offers based on re-nominations with the System
Operator.

3.4. Submission of Working Nominations

3.4.1. Must-Dispatch, Priority Dispatch, and Non-Scheduled Generators are expected to
submit accurate 5,minute tvlW nominations in the MMS, Mpt.
3.4.2. Must-Dispatch, Priority Dispatch, and Non-scheduled Generators shall amply revise
their working nominations to reflect the best estimate of their generator,s output in
the immediate horizon.
3.4.3. During tripping of their generation units, the Generators shall cancel their working
nominations in the MMS.

3.5. Submission of Standing Offers and Nominations

3.5.1. Scheduled Generators shall submit Standinq Offer profiles in the MMS.
3.5.2. Must-Dispatch, Priorily Dispatch, and Non-scheduled submit Standing Nomination
Profiles in the MMS.

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3.6. Start-up and Shutdown Procedures
.
3.6.1 Generators whose generating units are scheduled to start-up or shutdown shall
request clearance from the System Operator at least four (4) hours before scheduled
start-up.
3.6.2. Once cleared by the System Operator, Generators shall manage the start-up and
shutdown sequence of their generation facilities through their offers (e.9. reflect
accurate ramp rate profiles, manage offer MW/price blocks, etc.).

3.7. lmplementation of 5-minute Dispatch Schedules

3.7.1 . Except for scheduled ancillary service providers, generators are expected to ramp to
their target s-minute dispatch schedules as generated from the MMS while
considering their DAGO or in-day re-nominations.
3.7.1.1 lf the s-minute dispatch schedule is greater than their DAGO or in-day re-
nomination, then generators are expected to dispatch their generating
facility up to their DAGO or in-day re-nomination.
3.7.2. fhe System Operator shall provide dispatch instructions to scheduled ancillary
service providers.
3.7.3. The System Operator may re-dispatch generators based on the following.
3.7.3.1 Available ancillary services; or
3.7.3.2 Load Adjustment Notlce.
3.7.4. Generators are expected to follow SO re-dispatch instructions.
3.7.4.1 For compliance reporting purposes, Generators are expected to ask for the
reason of SO's re-dispatch instruction: (i.e ancillary service and Load
Adjustment Notice)
3.7.4.2 Generators should log reason provided by the System Operator in the M MS-
MPI's Dispatch Conformance Display.
3.7.5. ln cases where s-minute RTD schedule is below Pmin:
3.7.5.1 lf expected to start-up/shutdown, ramp towards RTD schedule; or
3.7.5.2 lf cunently online, ramp towards Pmin; or
3.7.5.3 lf currently offline, stay offline.
3.7.5.4 lmmediately revise offers to ensure generating unit is scheduled at
intended MW level (e.g offline or at least at Pmin).
3.7.5.5 The above guidelines may still be overridden by the System Operator for
reliability reasons.

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3.8. Settlement During WCS
.
3.8. 1 Generators, Customers, the System Operator, and the Market Operator shall perform
their responsibilities as provided for in the lnterim Mindanao Dispatch Protocol.
3.8.2. Settlement shall be based on the existing contractual arrangements between
Generators and Customers in Mindanao.
3.8.3. There is no settlement of WESM transactions.

3.9. Complying to the 5-minute Dispatch Schedules and lnstructions

3.9.1. Generators are expected to follow the procedures of generation dispatch as provided
in section 3.7 of this document.
3.9.2. Should Generators be unable to comply with the procedures of generation dispatch
in section 3.7 of this document, they shall report the reasons for such non-
compliances to PEMC's Enforcement and Compliance Office. They shall provide the
same reason for non-compliance to the Market Operator near real-time through the
Dispatch Conformance Standards (DCS) module of the Market Participant lnterface.
3.9.3. The System Operator shall also report incidents where generators are unable to
comply with the procedures of generation dispatch in section 3.7 of this document.

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