WESM Participant Handbook Vol2

7/25/2019 WESM Participant Handbook Vol2

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A U G U S T 2 0 1 5

Vol. 2 Trading Operations in the Philippine WESM


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WESMHandbookA Guide to All Members and Applicants of the

Philippine Wholesale Electricity Spot Market (WESM)

The Philippine Electricity Market Corporation (PEMC) provides this document (the Document)

for general information purposes only. The information contained in this Document is correctto the best of PEMCs knowledge at the time of publishing but may change over time. The

Document is reviewed and updated from time to time. If you have further inquiries regarding this

Document, please contact PEMCs Participant Support Section via e-mail at [email protected],

or through telephone at (+632) 631.8734 loc. 229/239.

Disclaimer/Waiver:

All information in this document may still be subject to change after nal verication by the

PEMC. This publication is meant to provide a timely overview of the trading operations in the

WESM. As such, PEMC does not make any representation or warranties as to the completenessor accuracy of the information. PEMC, likewise, accepts no responsibility or liability whatsoever,

for any loss or costs incurred by the reader arising from, or in relation to, any contributions or

assumptions derived from the information.

EDITORIAL TEAM

Phillip C. Adviento

Josephine C. Corpuz

Cerise M. Cabactulan

Eric Nio U. LouisMenachem Reykarl B. Loyola

Katrina A. Garcia-Amuyot

Daisy Jane C. Alfafara

Arnesh Y. Inostro

Theresse Joy V. Calo

LAYOUT ARTIST

Rhlee B. Amojilar

ADVISER

Robinson P. Descanzo

CONTRIBUTORS

Edwin N. Mosa

Arthur P. Pintado

Edward I. Olmedo


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WESM Operations

Introduction

Scheduling and Dispatch in the WESM

WESM Timetable

During Normal Conditions

During Emergency Conditions

Sample Cases of Market Interventions

Market Suspension

Sample Normal Dispatch Process

Load Forecasting

Introduction

Demand Forecasting for Market Projections

Demand Forecast for the Real-time Dispatch Runs

Operational Market Reports

Introduction

Procedure

Daily Operation Reports

Market Participant Interface

Scheduling and Pricing

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7

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TABLE OF CONTENTS


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WESM OPERATIONS

INTRODUCTION

A clear denition and delineation of responsibilities are necessary to ensure the reliable operation of

the grid, especially with the Market Operator (MO) and the System Operator (SO) being two separateentities.

As a result, the WESM Manual on the Dispatch Protocol was formulated after rigorous discussions

between MO and SO.

The Dispatch Protocol

Clearly establishes the WESM Timetable for the execution of specic processes (WESM Rules 3.4.2

and 10.4.8.1)

Establish scheduling and dispatch procedures to be followed in

Normal Conditions-

Emergency Conditions-that should be consistent with the WESM Timetable and features of the MMS

SCHEDULING AND DISPATCH IN THE WESM

WESM was established as the trading platform of energy transactions.

WESM was also established as the central platform for the dispatch scheduling of generating facilities.

SO is still responsible in the dispatch of generating units at real-time.

MO has the responsibility of forecasting demand, and prepares a Security Constrained Economic

Dispatch (SCED) schedule of generators and loads based on the hourly demand bids and generation

offers.

MO also maintains a Market Network Model (MNM) which shall be used by the Market Dispatch

Optimization Model (MDOM), which shall be able to consider transmission constraints and losses.

Responsibilities in WESMs Scheduling and Dispatch

The MO, SO, and Trading Participants (TPs) are the three entities involved in the scheduling and dispatch of

generating facilities in WESM

MO Responsibilities in Scheduling and Dispatch

Maintenance of the MNM in coordination with the SO

Generation of dispatch schedules using the MDOM

Transmittal of dispatch schedules to the SO for implementation


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SO Responsibilities in Scheduling and Dispatch

Submission of overriding constraints to ensure the reliable operation of the grid

Outage Schedule - List of Equipment (e.g. generators, lines, transformers, breakers, etc.) that will be

out of service for a certain dened period.

Contingency List - List of Equipment enlisted for contingency analysis (as per Grid Code: N-1

Contingency Requirement).

Security Limits - List of Generators and Branch Groups that will have its limits overridden for security

purposes (e.g. MRU/testing/commissioning).

Transmission Limits - list of transmission capacities of lines and transformers to be consider in the

scheduling process

Implementation of the dispatch schedules provided by MO

Issuance of deviation report to MO (actual vs. schedule)

TP Responsibilities in Scheduling and Dispatch

Submission of bids and offers to WESM consistent with the WESM Timetable

Comply to the dispatch instructions of SO

Figure 1. Scheduling and Dispatch in the WESM


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WESM TIMETABLE

Trading activities in WESM operate at different time frames

Week Ahead Projection (WAP)

Day Ahead Projection (DAP)

Hour-Ahead or Real-Time Dispatch (RTD)

Real-Time Ex-post (RTX)

WESM TIMETABLE: WAP

The Week-Ahead Projection (WAP) gives indicative hourly dispatch schedules and spot prices for the

next seven days.

Its results serve as a guide to the following entities:

Participants when bidding transactions in the market for the next seven days

SO in the determination of the cost impact of planned outages

It considers the following information, which shall be used by the Market Management System (MMS) to

generate schedules:

Demand bids and energy offers from Trading Participants

Demand forecasts

Outage Schedules

Security Limits

Latest available system snapshot

WAP is executed every day to produce results for the next seven days.

WAP is executed at 0900H of each trading day

D-1 D D+1 D+2 D+3 D+4 D+5 D+6 D+7 D+8 D+9

TRADING DAYS

Execut on oWAP at Day D

Study Period of WAP at Day D

(From D+1 to D+7)

4

4

TRADING DAYS

4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

WAP Results and Analysis

Coordination with SOPrior to 0900H, thefollowing activities aremade for D+1 to D+7 Gathering of weather

forecasts Preparation of demand

forecasts Submission or revision

of bids and offersThe latest information provided by

SO prior to 0900H shall be used System Snapshot Outage Schedule Security Limit Transmission Limit Contingency List

Publish WAPResults in WEB

WAP Execution

Figure 2. WESM Timetable: WAP


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TRADING DAYS

4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

DAP Results Analysis Coordination with SO isdone up until 1 hour after the DAP execution

The latest information provided by SO prior to each DAP run shall be used The latest bids and offers shall be used. Submission or revision of bids and offers relevant to the succeeding hours can

be made prior to the execution of the DAP run. Demand forecasts for each of the succeeding hours evaluated by the DAP run should be provided prior to its execution.

Revisions may still be implemented prior to the DAP run

0800H DAP

DAP Results AnalysisCoordination with SO

1200H DAP 1600H DAP0400H DAP

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WESM TIMETABLE: DAP

The Day-Ahead Projection (DAP) gives indicative hourly dispatch schedules and spot prices covering the

succeeding hours of the day up to the end of the following day.

It allows the SO to prepare a more accurate contingency plan for the relevant intervals.

It considers the following information, which shall be used by the Market Management System (MMS) togenerate schedules

Demand bids and energy offers from Trading Participants

Revisions of bids and offers for consideration in the DAP run can be done until a cut-off time

(four hours prior to the trading hour)

Demand forecasts

Outage Schedules

Security Limits

Latest available system snapshot

DAP is executed every four hours to produce results for the succeeding hours until the end of the

following day.

DAP Study Period

DAP Run atCurrent Day D

Study Horizon

From To

0400H 0500H of D 2400H of D

0800H 0900H of D 2400H of D

1200H 1300H of D 2400H of D+1

1600H 1700H of D 2400H of D+1

2000H 2100H of D 2400H of D+1

2400H 0100H of D+1 2400H of D+1

Figure 3. WESM Timetable: DAP

Table 1. DAP Study Period


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WESM TIMETABLE: RTD

The Hour-Ahead or Real-Time Dispatch (RTD) publishes schedules that shall be implemented by SO,

and spot prices that shall be used in the settlement of market transactions.

The RTD schedules are subject to the nal screening of SO before a dispatch instruction is issued to a

Trading Participant.The dispatch schedule is the target MW loading of all Trading Participants at the end of a trading interval.

RTD is executed every 55th minute of the hour.

WESM TIMETABLE: RTX

The Real-Time Ex-Post (RTX) represents the duration of the trading interval.

It is not used by the SO in the dispatch implementation since it is merely used for price discovery, in

which its results represent the actual events that transpired for the duration of the trading interval

Its results are used to settle imbalances in the market (schedule vs. actual)

RTX is executed every 1st minute of the hour

40 50 00 10 20 30 40 50 0 0 10 20 30 40 50 00 10 20 30 40

HH-2 HH-1 HH HH+1

Gate Closure for

bids and offers

Dispatch Implementation for HHto meet Target Schedule

Trading Interval HH

Trading Interval HHRTD Execution for

Trading Hour HHThe latest information

provided by SO prior to each

RTD run shall be used

Transmit RTD Schedules and

MOT to SO

Publish results in WEB

40 50 00 10 20 30 40 50 0 0 10 20 30 40 50 00 10 20 30 40

HH-2 HH-1 HH HH+1

Trading Interval HH

RTX Execution for

Trading Hour HHThe latest information

provided by SO prior to each

RTX run shall be used

Figure 4. WESM Timetable: RTD

Figure 5. WESM Timetable: RTX


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WESM Rules 6.3.1.1 states that an emergency condition is a situation which has an adverse effect on

electricity supply or which poses a signicant threat to system security

SAMPLE CASES OF MARKET INTERVENTION(06 FEBRUARY 2012: 1200H TO 1400H)

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Activities Procedure in the Dispatch ProtocolResponsible Group

MO SO

System Emergency and Restoration -- x x

Market Suspension and Intervention Appendix B.2 x

EMS Disaster Recovery Procedures -- x

MMS Disaster Recovery Procedures -- x

Report and Documentation of Events -- x x

Emergency Market intervention was declared due to tripping

of several power plants affected by magnitude 6.9 earthquake

in the Visayas Region.

The intervention was initiated by the Visayas

System Operator.

The Market Intervention Report prepared by the National Grid

Corporation of the Philippines (NGCP) is attached.

(WESM Rules clause 6.3.1.2 (c))

Table 4. WESM Tasks During Emergency System Conditions

Figure 6. Sample Case: Market Intervention


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MARKET SUSPENSION(14 JULY 2010)

SAMPLE NORMAL DISPATCH PROCESSFOR THE 0900H TARGET TRADING INTERVAL (08:01 AM UNTIL 09:00 AM)

FOR THE 0900H TARGET TRADING INTERVAL (08:01 AM UNTIL 09:00 AM)

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Pursuant thereto and by reason of the power sys-

tem disturbance brought by typhoon BASYANG,

the commission has suspended the operations of

the WESM effective on 14 July 2010 at 1200H, as

contained in the notice of Market Suspension is-

sued by this commission which is attached hereto

and made an integral part hereof as Annex A

Figure 8. Sample Normal Dispatch Process

Figure 7. Sample Case: Market Suspension


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0

LOAD FORECASTING

INTRODUCTION

Forecasting is a process of predicting market condition using historical data. In the WESM, we predict the

energy to be consumed in a certain area for a specic trading interval incorporating historical data, real timegrid system status, weather condition and events.This process is known as Load Forecasting. The provision

of load demand is necessary for the calculation of market prices and dispatch schedules. It is an integral

requirement of the market dispatch optimization model. The WESM Rules provide the calculation of market

projections and real-time schedules which require accurate load demand forecast information. The load

forecasting in the market has three time frames; namely hour-ahead, day-ahead and week-ahead

forecasting.

Hour-Ahead Forecast

The process of forecasting the load energy demand for next top of the hour. It is conducted every hour anduses the latest real time grid system status, weather condition and events. The Ex-ante (Real-Time Dispatch

or RTD) utilizes this forecast.

Day-Ahead Forecast

The process of forecasting the load energy demand for the next day and is being updated every four hours

to accurately reect the near real time load energy demand. The Day-Ahead Projection (DAP) utilizes this

forecast.

Week-Ahead Forecast

The process of forecasting the load energy demand for the next seven days. It is being updated daily. The

forecast output is an indicative gure for Market Participant bidding strategy and generator maintenance

scheduling. The Week-Ahead Projection (WAP) utilizes this forecast.


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Week-Ahead and Day-Ahead Demand Forecasts

Hourly Demand Forecasts for each Forecast Area from the current day to the next seven days shall be

determined by the Market Operator using the Similar Day Load Forecast (SDLF) module of the MarketManagement System (MMS).

The Demand Forecasts obtained in the week ahead forecast shall be used as Input Demand Forecasts

to obtain the WAP and the DAP.

The summation of the Net Load Forecast plus the losses computed for a Forecast Area after the

optimization process in the relevant market run (i.e. WAP or DAP) constitutes the Final Demand

Forecast for that Forecast Area.

DEMAND FORECAST FOR MARKET PROJECTIONS

Figure 9. SDLF Methodology Load Forecasting


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Hour-Ahead Forecasts

Demand Forecasts for the next hour in each Forecast Area shall be determined by the Market Operatorusing the Load Predictor (LDP) module of the Market Management System.

The Demand Forecasts obtained in the hour-ahead forecast shall be used as Input Demand Forecasts toobtain the Real-Time Dispatch (RTD).

The summation of the Net Load Forecast plus the losses computed for a Forecast Area after theoptimization process in the relevant RTD run constitutes the Final Demand Forecast for that ForecastedArea.

DEMAND FORECAST FOR THE REAL-TIME DISPATCH RUNS

Figure 10. LDP Methodology Load Forecasting


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OPERATIONAL MARKET REPORTS

INTRODUCTION

The Market Operator (MO) regularly publishes operational market reports to the public required by the

WESM Rules in accordance with the WESM Timetable. Using a web-based report system, operational

market reports are easily made available online to the trading participants and the general public.

PROCEDURE

Market Participant Interface (MPI)

Registered Trading Participants (TPs) shall have access to the Market Management System (MMS) or

WESM through a Market Participant Interface (MPI). The MPI is connected to the MMS through the world-

wide web. The MPI shall be used by all TPs to bid and retrieve market information from the WESM-MMS.The MPI may be accessed through: www.mms.wesm.ph

Information to be Published

System Messages

The System Messages display is the primary link between the Trading Participant and the WESM

Market Operator. The TP is notied of all kinds of system events such as report publication and

availability, market suspension or re-activation, and the like.

System Messages are classied as:

Normal: These are generally system-generated messages displayed in GREEN-

Urgent: Urgent Messages are displayed in BLUE-

Emergency: Emergency Messages are displayed in RED-

Market Status Display

The Market Status Display shows the status of Hourly Energy Markets e.g. if the Market is still Open

or had already Closed.

Market Participant Interface Data

Using MPI, the Trading Participants will be able to access the following information:

Market Participant Registration-

Bids and Offers Data-

Market and System Advisories-

Updates on Market Prices, Dispatch and Pre-dispatch schedules-

Demand Forecasts-

Real-Time Ex-post (RTX) Prices-

Market Participant Specic, All Market Participants, and ADHOC Reports-

Settlement (Prudential Requirements)-


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WESM Website

The WESM website contains technical information on the WESM as well as all recent WESM development

and announcements.

The WESM website is: www.wesm.ph

Information to be Published

All Market information required to be published by the Market Operator under the WESM rules shall be

made accessible to the WESM members, DOE, ERC and the general public through the WESM website.

Access to the Market information other than the WESM website shall be the responsibility of the parties

concerned.

Systems and Procedures

The following are standard operating procedures that are to be observed during WESM operation:

WESM Timetable-

WESM Operating Procedures during Normal System Condition-

Emergency Procedures jointly developed by System Operator and Market Operator.-

Detailed procedures developed by the System Operator in relation tocompetitive tendering-

process for Ancillary Services.

Dispatch and pricing procedures in the event of load shedding and excess generation developed-

in consultation with the System Operator.

Other WESM Reports

The following are the relevant reports that are to be prepared as required by the different provisionsof the WESM rules:

Findings and recommendation of the PEM auditor regarding changes in WESM rules consequent-

to annual audit, review, check, or otherforms of review.

Suspension notice issued to a WESM participant. It shall also be published in a newspaper of-

general circulation, as soon as practicable.

Revocation of suspension issued to a WESM Participant. It shall also be published in a-

newspaper of general circulation, as soon as practicable.


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DAILY OPERATIONS REPORT

The Market Operator shall closely monitor Market Operations on an hourly basis within the trading day.

Likewise, the MO shall record and verify all signicant events that are not recorded in the MMS. The MO-

DOR shall be reviewed and approved by the Operations Unit Head.

At the end of every trading day, the Market Operator shall prepare a report containing the summary of its

operations on an hourly basis of the previous day which includes the contents of the Post Dispatch Report.

The following are the daily Operations report being published by the Market Operator:

WESM WEB SITE (https://www.wesm.ph)

WAP_DAY_LUZON

WAP_DAY_VISAYAS

NEXT_DAY_LUZON

NEXT_DAY_VISAYAS

PREVIOUS_DAY_LUZON PREVIOUS_DAY_VISAYAS

RTD Marginal Plant

RTX Marginal Plant

Market Participant Interface (MPI)

RTD OUTAGE SCHEDULE

RTX OUTAGE SCHEDULE

PEN REPORT

DAP Pmin

PSM REPORT-Hourly Price Substitution occurrence if any for RTD and RTX

Next Week Summary (NWS)

A summary of the results of WESMs Week-Ahead Projection (WAP).

The Next Week Summary (NWS) report contains a daily summary of the following results for each of the

trading days included in the relevant WAP workow run.

Demand and Reserve Requirement1.

Market Participant Bids and Offers Summary2.

Energy and Reserve Schedules3.Market Price Summary4.

The WAP is executed daily to project the hourly results for the next seven days (e.g. Monday WAP run

contains hourly results from the next day (Tuesday) up to the following Monday).


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Next Day Summary (NDS)

A summary of the results of WESMs Day-Ahead Projection (DAP).

The NDS report contains a summary of the following results projected for the following day as obtained in the

relevant DAP workow run.



Energy and Reserve Schedules3.

Market Price Summary4.

The DAP is executed every four hours to project the hourly results from the next hour of the same day, up

until the end study period of a particular run (some DAP runs end at 2400H of the same day while other DAP

runs end at 2400H of the next day). The following table shows the study periods of the different DAP runs.

Previous Day Summary

A summary of the results of WESMs Hour-Ahead or Real-Time Dispatch (RTD) and Real-Time Ex-Post

(RTX)

The Previous Day Summary (PDS) report contains a summary of the following results that transpired

during the previous day involving the RTD and RTX workows in the market.



Energy and Reserve Schedules3.

Market Price Summary4.

The information contained herein are those obtained at real-time for the RTD and RTX workows, and it

does not reect any pricing corrections that may be involved in cases of pricing errors.

The Market Operator regularly publishes market reports to the public that contains a summary of the

markets results, primarily involving the RTD and RTX.

DAP RUN FROM TO

0400H 0500H of DAY D 2400H of DAY D

0800H 0900H of DAY D 2400H of DAY D

1200H 1300H of DAY D 2400H of DAY D+1



2400H 0100H of DAY D+1 2400H of DAY D+1

Table 5. DAP Runs


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Marginal Plants

The Marginal Plant (MP) data presents information on the hourly Marginal Plants and their corresponding

price offers in the market.

The MP is the generating unit or plant whose price offer corresponds to the system marginal price for a given

trading interval.

In an unconstrained system, the market price is set by one MP (i.e., the system marginal price). This price is

adjusted for each node to consider transmission losses and/or congestion costs to come up with a resulting

value called the Locational Marginal Price (LMP).

Where the system is constrained, the relevant ows of electricity are affected as the line limitations arising

from the congestion may impede the supply of cheaper electricity from one area to another. In such cases,

there may be more than one MP setting the marginal price for the different nodes on either side of the

constraint.

Available Market Data in the WESM Website

The following list shows a variety of market information made available to the general public in the WESM

public website.

Market Bids and Offers1.

Market Prices and Schedules2.

Ex-ante and Ex-post LWAP3.

Market Re-Run Results4.

Marginal Plants5.

Administered Price6.HVDC Schedule7.

Net Settlement Surplus8.

Must-Run Unit Generation Price Index9.

Price Substitution Methodology for Congestion10.

Daily PEN-MRR-PSM-AP Summary11.

Final Market Prices12.

MARKET PARTICIPANT INTERFACE

The results of the Real Time Dispatch (RTD and RTX) shall be published in the Market Participant Interface(MPI). The following information shall be published (for each Resource of a Trading Participant)

Other system data that will be published includes the following:

Total energy dispatched

Total dispatchable load

Total system losses

Locational Marginal Prices

Information RTD RTX

Energy Dispatch TargetActual Energy / Delivered /

Consumed

Nodal Price Ex-Ante Price Ex-Post Price

Table 6. RTD & RTX Results Published in the MPI


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Publication of Results

The results of the Real Time Dispatch shall be published in accordance with the WESM timetable.

The results of the Real Time Dispatch shall be published in the Market Participant Interface (MPI) and

correspondingly submitted to the System Operator on the following schedules:

RTD Outage Schedule

The RTD Outage Schedule data presents information on the hourly Outage Schedules for the RTD run for

the 24-hour interval within a trading day.

RTX Outage Schedule

The RTX Outage Schedule data presents information on the hourly Outage Schedules for the RTX run for

the 24-hour interval within a trading day.

PEN Report

The PEN Report data presents information on the summary of all the Pricing Error Notice (PEN) issuedwithin the trading day.

DAP Pmin

The DAP Pmin data presents information on the computation of the total Pmin of the generators resulted

from the 1600H DAP run of the trading Day. It aims to see whether there shall be a possibility of an over

generation for the next trading day.

PSM Report

The PSM Report data presents information on the hourly price substitution occurrence if any for RTD andRTX.

Process Study Horizon Execution Frequency

RTD Results Publication 1 Hour-aheadHourly, at the start of Trading

Interval

RTX Results Publication 24 Hours of the previous Day 1200H of the following Day

Table 7. RTD & RTX Results Schedule in the MPI


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OPERATIONAL MARKET REPORTSSCHEDULING AND PRICING

Scheduling and Dispatch upon Establishment of WESM Operations

WESM was established as the central trading platform for the scheduling, dispatch, and net settlement of

generating facilities and loads in grids with WESM operations.

The Market Operator (MO), System Operator (SO), and Trading Participants (TPs) are the three entities

involved in the scheduling and dispatch of generating facilities in WESM.

The SO is responsible for the dispatch of generating units at real-time.

The MO has the responsibility of forecasting demand and the scheduling of generators and loads

based on hourly generation offers and demand bids through a Security-Constrained Economic Dispatch

(SCED).

The SCED of generators and loads are obtained using WESMs MDOM, which utilizes the MNMmaintained by the MO. As such, pricing and scheduling calculations are able to consider transmission

losses and constraints.

TPs are responsible for the following:

Submission of generation offers and/or demand bids.

Comply with the dispatch instructions.


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USEFUL CONTACTS

Philippine Electricity Market Corporation

Participant Support Section9F Robinsons Equitable Tower, ADB Avenue

Ortigas Center, Pasig City, Philippines 1600

Tel. No.: (+632) 631.8734 loc. 239 / 229 / 220 / 302

Facsimile: (+632) 636.0802 / 634.0985

Email: [email protected]

Department of Energy

DOE Information Center

Information Technology & Management Services

Energy Center, Merritt RoadFort Bonifacio, Taguig, Philippines 1201

Tel. No.: (+632) 840.2120


National Electrifcation Administration

57 NEA Building, NIA Road, Government Center

Diliman, Quezon City, Philippines 1001

Tel No.: (+632) 929.1909 local 124

Facsimile: (+632) 929.2171

National Grid Corporation of the Philippines

Quezon Avenue corner BIR Road

Diliman, Quezon City, Philippines

Trunk-line (connecting all Departments): (+632) 981.2100

Energy Regulatory Commission

Pacic Center Building, San Miguel AvenueOrtigas Center, Pasig City, Metro Manila, Philippines 1600

Tel. No.: (+632) 914.5000 local 114

Facsimile: (+632) 631.5816


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