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The Philippine Electricity Market Corporation (PEMC) provides this document (the “Document”)
for general information purposes only. The information contained in this Document is correct
to the best of PEMC’s 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 PEMC’s Participant Support Section via e-mail at helpdesk@wesm.ph,
or through telephone at (+632) 631.8734 loc. 229/239.
Disclaimer/Waiver:
All information in this document may still be subject to change after final verification 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 completeness
or 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.
Layout Artist
Rhlee B. Amojilar
Adviser
Robinson P. Descanzo
Table of contents
WESM Operations 2
Introduction 2
WESM Timetable 4
Market Suspension 9
Load Forecasting 10
Introduction 10
Procedure 13
INTRODUCTION
• A clear definition 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 separate
entities.
• 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 specific processes (WESM Rules 3.4.2
and 10.4.8.1)
The MO, SO, and Trading Participants (TPs) are the three entities involved in the scheduling and dispatch of
generating facilities in WESM
2
2
SO Responsibilities in Scheduling and Dispatch
• Submission of bids and offers to WESM consistent with the WESM Timetable
• Comply to the dispatch instructions of SO
3
3
WESM Timetable
• 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:
WESM timetable: WAP
○○ Demand bids and energy offers from Trading Participants
○○ Demand forecasts
○○ Outage Schedules
○○ Security Limits
○○ Latest available system snapshot
• WAP is isexecuted
• WAP every
executed every day today to produce
produce results for theresults for
next seven the next seven days
days.
• 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) to
generate 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
•
WESM timetable: dAP
○○ 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 is executed every four hours to produce results for the succeeding hours until the end of the
following day Figure 3. WESM Timetable: DAP
trAdiNG dAyS
… 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 …
• 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
5
5
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 final screening of SO before a dispatch instruction is issued to a
•
Trading Participant. WESM timetable: rtd
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.
• RTD is executed every 55th minute of the hour
Figure 4. WESM Timetable: RTD
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
• 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
•
WESM timetable: rtX
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
• RTD is executed every 55th minute of the hour
Figure 5. WESM Timetable: RTX
Trading Interval HH
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
Majority of the day-to-day activities in the market fall under the category of normal conditions
Responsible Group
Activities Procedure in the Dispatch Protocol
MO SO
Bids and Offers Appendix A.1 x
• 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 significant threat to system security
Threat to system
Security
7
7
• 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 significant threat to system security
Responsible Group
Activities Procedure in the Dispatch Protocol
MO SO
System Emergency and Restoration -- x x
8
8
Market Suspension
(14 July 2010)
Figure 7. Sample Case: Market Suspension
FOR THE 0900H TARGET TRADING INTERVAL (08:01 AM UNTIL 09:00 AM)
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9
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 specific trading interval incorporating historical data, real time
grid 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 and
uses 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 reflect 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 figure for Market Participant bidding strategy and generator maintenance
scheduling. The Week-Ahead Projection (WAP) utilizes this forecast.
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10
DEMAND FORECAST FOR MARKET PROJECTIONS
• 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 Market
Management 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.
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11
DEMAND FORECAST FOR THE REAL-TIME DISPATCH RUNS
Hour-Ahead Forecasts
• Demand Forecasts for the next hour in each Forecast Area shall be determined by the Market Operator
using 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 to
obtain the Real-Time Dispatch (RTD).
• The summation of the Net Load Forecast plus the losses computed for a Forecast Area after the
optimization process in the relevant RTD run constitutes the Final Demand Forecast for that Forecasted
Area.
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12
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
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 notified of all kinds of system events such as report publication and
availability, market suspension or re-activation, and the like.
The Market Status Display shows the status of Hourly Energy Markets e.g. if the Market is still Open
or had already Closed.
Using MPI, the Trading Participants will be able to access the following information:
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WESM Website
The WESM website contains technical information on the WESM as well as all recent WESM development
and announcements.
• 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.
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.
The following are the relevant reports that are to be prepared as required by the different provisions
of 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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Operational Market Reports
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 significant 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
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 workflow run.
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)
The NDS report contains a summary of the following results projected for the following day as obtained in the
relevant DAP workflow run.
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.
A summary of the results of WESM´s 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 workflows in the market.
The information contained herein are those obtained at real-time for the RTD and RTX workflows, and it
does not reflect 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
market´s results, primarily involving the RTD and RTX.
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16
Operational Market Reports
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 flows 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.
The following list shows a variety of market information made available to the general public in the WESM
public website.
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)
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:
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.
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) issued
within 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 and
RTX.
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SCHEDULING
OperationalAND
Market
PRICING
Reports
• 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 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 WESM’s MDOM, which utilizes the MNM
maintained by the MO. As such, pricing and scheduling calculations are able to consider transmission
losses and constraints.
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USEFUL CONTACTS
Department of Energy
DOE Information Center
Information Technology & Management Services
Energy Center, Merritt Road
Fort Bonifacio, Taguig, Philippines 1201
Tel. No.: (+632) 840.2120
Email: info@doe.gov.ph