Analysis of RA 9136, the Electric Power Industry Reform Act, for my Policy Analysis I course in Carnegie Mellon in 2010. Full paper can be viewed here: http://scr.bi/HNHTHU
A discussion guide on the failures of power industry privatization in the Philippines as well as the unfulfilled promises of the Energy Power Industry Reform Act of 2001 (EPIRA)
A discussion guide on the failures of power industry privatization in the Philippines as well as the unfulfilled promises of the Energy Power Industry Reform Act of 2001 (EPIRA)
Ability to maintain a steady frequency within a nominal range, following a disturbance resulting in a significant imbalance between system generation and load
of interest is the overall response as evidenced by mean frequency, rather than relative motions of machines
In a small "island" system, frequency stability could be of concern for any disturbance causing a significant loss of load or generation
In a large interconnected system, frequency stability could be of concern only following a severe system upset resulting in the system splitting into one or more islands
Depends on the ability to restore balance between generation and load of island systems with minimum loss of load and generation
Generally, frequency stability problems are associated with inadequacies in equipment responses, poor coordination of control and protection systems
Supply Systems
I
n early days, there was a little demand for
electrical energy so that small power stations
were built to supply lighting and heating
loads. However, the widespread use of electrical
energy by modern civilisation has necessitated
to produce bulk electrical energy economically
and efficiently. The increased demand of electri-
cal energy can be met by building big power sta-
tions at favourable places where fuel (coal or gas)
or water energy is available in abundance. This
has shifted the site of power stations to places
quite away from the consumers. The electrical
energy produced at the power stations has to be
supplied to the consumers. There is a large net-
work of conductors between the power station
and the consumers. This network can be broadly
divided into two parts viz., transmission and dis-
tribution. The purpose of this chapter is to focus
attention on the various aspects of transmission
of electric power.
This PPT was crate for my seminar presentation and upload for help and providing information about FAULT ANALYSIS IN HVDC & HVAC TRANSMISSION LINE and basic idea of HVDC System
Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency
Renewable Energy Project Development in Off-Grid Areas - Rene Fajigalutan, RO...OECD Environment
1st Clean Energy Finance and Investment Consultation Workshop: “Unlocking finance and investment for clean energy in the Philippines” 31 May – 1 June 2022, Makati Diamond Residences, Legazpi Village, Makati City
Seminar: Modelling Renewables Resources
and Storage in PowerFactory V15.2
This is a very simple seminar designed to present a general overview of the modelling renewables (Wind and PV) and storage (Batteries) in PowerFactory. This is not a 2 day training, it is a simple 90 minutes presentations. I hope you enjoy it.
Renewable Energy Policy Mechanisms and Investment Opportunities - Mylene Capo...OECD Environment
1st Clean Energy Finance and Investment Consultation Workshop: “Unlocking finance and investment for clean energy in the Philippines” 31 May – 1 June 2022, Makati Diamond Residences, Legazpi Village, Makati City
How To Apply Energy Storage Technologies In Commercial And Industrial Applica...Davide Bonomi
This presentation was presented at the masterclass session during 11th Energy Storage World Forum in 2018, Berlin.
How To Apply Energy Storage Technologies In Commercial And Industrial Applications – by ENEA explains two reasons why facilities should be interested in storage projects:
1. Market & value for C&I energy storage is finally booming in numerous locations
2. Startups and large utilities now compete to provide C&I facilities with turnkey solutions
If you’d like to get a deep industry insights and learn in person from energy storage professionals, join our next masterclass at https://energystorageforum.com/register
Ability to maintain a steady frequency within a nominal range, following a disturbance resulting in a significant imbalance between system generation and load
of interest is the overall response as evidenced by mean frequency, rather than relative motions of machines
In a small "island" system, frequency stability could be of concern for any disturbance causing a significant loss of load or generation
In a large interconnected system, frequency stability could be of concern only following a severe system upset resulting in the system splitting into one or more islands
Depends on the ability to restore balance between generation and load of island systems with minimum loss of load and generation
Generally, frequency stability problems are associated with inadequacies in equipment responses, poor coordination of control and protection systems
Supply Systems
I
n early days, there was a little demand for
electrical energy so that small power stations
were built to supply lighting and heating
loads. However, the widespread use of electrical
energy by modern civilisation has necessitated
to produce bulk electrical energy economically
and efficiently. The increased demand of electri-
cal energy can be met by building big power sta-
tions at favourable places where fuel (coal or gas)
or water energy is available in abundance. This
has shifted the site of power stations to places
quite away from the consumers. The electrical
energy produced at the power stations has to be
supplied to the consumers. There is a large net-
work of conductors between the power station
and the consumers. This network can be broadly
divided into two parts viz., transmission and dis-
tribution. The purpose of this chapter is to focus
attention on the various aspects of transmission
of electric power.
This PPT was crate for my seminar presentation and upload for help and providing information about FAULT ANALYSIS IN HVDC & HVAC TRANSMISSION LINE and basic idea of HVDC System
Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency Power System Frequency
Renewable Energy Project Development in Off-Grid Areas - Rene Fajigalutan, RO...OECD Environment
1st Clean Energy Finance and Investment Consultation Workshop: “Unlocking finance and investment for clean energy in the Philippines” 31 May – 1 June 2022, Makati Diamond Residences, Legazpi Village, Makati City
Seminar: Modelling Renewables Resources
and Storage in PowerFactory V15.2
This is a very simple seminar designed to present a general overview of the modelling renewables (Wind and PV) and storage (Batteries) in PowerFactory. This is not a 2 day training, it is a simple 90 minutes presentations. I hope you enjoy it.
Renewable Energy Policy Mechanisms and Investment Opportunities - Mylene Capo...OECD Environment
1st Clean Energy Finance and Investment Consultation Workshop: “Unlocking finance and investment for clean energy in the Philippines” 31 May – 1 June 2022, Makati Diamond Residences, Legazpi Village, Makati City
How To Apply Energy Storage Technologies In Commercial And Industrial Applica...Davide Bonomi
This presentation was presented at the masterclass session during 11th Energy Storage World Forum in 2018, Berlin.
How To Apply Energy Storage Technologies In Commercial And Industrial Applications – by ENEA explains two reasons why facilities should be interested in storage projects:
1. Market & value for C&I energy storage is finally booming in numerous locations
2. Startups and large utilities now compete to provide C&I facilities with turnkey solutions
If you’d like to get a deep industry insights and learn in person from energy storage professionals, join our next masterclass at https://energystorageforum.com/register
Business case study of a utility scale wind project acquisition. Concepts include financial proforma modeling, due diligence, M&A, strategic analysis, wind energy, negotiation, utilities, wholesale power markets, and energy development.
This chapter presents first the electrical grid system and its main challenges. Then it presents the concept of the Smart grid (sensors, data collection, data analysis,..). Finally, the smart grid system is presented through the project SunRise “Large scale demonstrator of the Smart City”.
Power distribution system fault monitoring device for supply networks in NigeriaIJECEIAES
Electric power is the bedrock of our modern way of life. In Nigeria, power supply availability, sufficiency and reliability are major operational challenges. At the generation and transmission level, effort is made to ensure status monitoring and fault detection on the power network, but at the distribution level, particularly within domestic consumer communities there are no fault monitoring and detection devices except for HRC fuses at the feeder pillar. Unfortunately, these fuses are sometimes replaced by a copper wire bridge at some locations rendering the system unprotected and creating a great potential for transformer destruction on overload. This study is focused on designing an on-site power system monitoring device to be deployed on selected household entry power cables for detecting and indicating when phase off, low voltage, high voltage, over current, and blown fuse occurs on the building’s incomer line. The fault indication will help in reducing troubleshooting time and also ensure quick service restoration. After design implementation, the test result confirms design accuracy, device functionality and suitability as a low-cost solution to power supply system fault monitoring within local communities.
Solar photovoltaic (PV) systems generate electricity with no marginal costs or emissions. As a result, PV output is almost always prioritized over other fuel sources and delivered to the electric grid. At increasing levels of PV penetration situations arise where PV is curtailed, either because of local supply/demand imbalances or to maintain system flexibility. In this paper, we present a novel synthesis of recent curtailment in four key countries: Chile, China, Germany, and the United States. We find that about 6.5 million MWh of PV output was curtailed in these countries in 2018. We find that PV curtailment peaks in the spring and fall, when PV output is relatively high but electricity demand is relatively low. Similar to the case of wind, some PV curtailment is attributable to limited transmission capacity connecting sparsely populated solar-heavy regions to load centers.
Grid policies generally seek to minimize curtailment because it is viewed as an economic and environmental loss. However, changing grid and technological contexts warrant new thinking on PV curtailment. In the grid context, as grids integrate more PV and other renewable energy generation, seeking an optimal level of accepted curtailment becomes more efficient than preventing it. In the technological context, emerging technologies such as advanced inverters and low-cost battery storage are making PV systems more flexible. With flexible PV, grid operators can use withheld PV output to provide various non-generation grid services. This withheld PV output is a form of curtailment under prevailing definitions of the term. Hence, policies that aim to minimize curtailment may undercut the ability of grid operators to fully use the emerging capabilities of flexible PV systems. As a result, we propose a more exclusive definition of curtailment as unused PV output rather than the more expansive conventional definition as any reduction in system output from its technical potential.
Electricity Restructuring
and Competition
Electricity MarketsTraditional Organization of Electricity Provision in U.S.Govt regulated, vertically integrated public utilitiesLast 25 YearsWave of restructuring and introduction of electricity trading and competition across U.S. and other nationsNow large-scale wholesale electricity markets operate across many parts of U.S.
Factors leading to restructuring & deregulation
Prior track record of deregulating energy markets and other industries once considered natural monopolies
telecomm, airlines, railroads,
High electricity prices in spite of regulation
In U.S. states such as NY, California, New England
In other countries, such as U.K.
As the U.S. electricity transmission grid was built out in the 2nd half of 20th century, electric utilities started buying and selling energy from each other
This illustrated feasibility of trading energy across the grid in markets
Political Push
2nd Bush President
Electricity Restructuring – A How-To GuideUnbundle generation from transmission and distributionIt’s important to allow multiple business firms to own and operate generation plants (independent power producers (IPPs) or merchant generators)This may require forcing some vertically integrated IOUs to divest some of their generation assets
Electricity Restructuring – A How-To GuideEstablish an organized market for wholesale electricity tradingSellers are firms like merchant generators that inject energy into the gridBuyers are retail distributors and industrial users that withdraw energy from the gridMarket rules might include an advance-trading (e.g., day-ahead) market as well as a real-time balancing market
Electricity Restructuring – A How-To GuideSet up an organization to manage and coordinate energy flows over the gridThis could be an independent system operator (ISO) or a regional transmission organization (RTO)Key responsibilitiesBalance energy supply and demand in real timeMaintain system reliabilityCoordinate new transmission investments
Wholesale Market Competition
Electricity Restructuring – A How-To GuideRetail distributionOwnership and operation of local distribution networks would typically continue as regulated public utilities (natural monopoly rationale)But it is feasible to introduce retail competition via brokers and energy re-sellers who purchase wholesale energy, re-sell it to retail customers, and pay fees to local distribution companies for use of the local network.
Wholesale Electricity MarketsLet’s examine a perfect competition model of a short-run (hourly) wholesale electricity marketDemand SideDemand varies hour by hour, as weather conditions and desired electricity usage changeVery price inelastic – most retail customers pay fixed retail pricesSupply SideMost supply comes from fossil fuel generatorsFF supply is driven by cost of generation and capacities of generation units.Generation from renewables is intermittent
Fossil Fuel Generation a.
Electricity Restructuring
and Competition
Electricity MarketsTraditional Organization of Electricity Provision in U.S.Govt regulated, vertically integrated public utilitiesLast 25 YearsWave of restructuring and introduction of electricity trading and competition across U.S. and other nationsNow large-scale wholesale electricity markets operate across many parts of U.S.
Factors leading to restructuring & deregulation
Prior track record of deregulating energy markets and other industries once considered natural monopolies
telecomm, airlines, railroads,
High electricity prices in spite of regulation
In U.S. states such as NY, California, New England
In other countries, such as U.K.
As the U.S. electricity transmission grid was built out in the 2nd half of 20th century, electric utilities started buying and selling energy from each other
This illustrated feasibility of trading energy across the grid in markets
Political Push
2nd Bush President
Electricity Restructuring – A How-To GuideUnbundle generation from transmission and distributionIt’s important to allow multiple business firms to own and operate generation plants (independent power producers (IPPs) or merchant generators)This may require forcing some vertically integrated IOUs to divest some of their generation assets
Electricity Restructuring – A How-To GuideEstablish an organized market for wholesale electricity tradingSellers are firms like merchant generators that inject energy into the gridBuyers are retail distributors and industrial users that withdraw energy from the gridMarket rules might include an advance-trading (e.g., day-ahead) market as well as a real-time balancing market
Electricity Restructuring – A How-To GuideSet up an organization to manage and coordinate energy flows over the gridThis could be an independent system operator (ISO) or a regional transmission organization (RTO)Key responsibilitiesBalance energy supply and demand in real timeMaintain system reliabilityCoordinate new transmission investments
Wholesale Market Competition
Electricity Restructuring – A How-To GuideRetail distributionOwnership and operation of local distribution networks would typically continue as regulated public utilities (natural monopoly rationale)But it is feasible to introduce retail competition via brokers and energy re-sellers who purchase wholesale energy, re-sell it to retail customers, and pay fees to local distribution companies for use of the local network.
Wholesale Electricity MarketsLet’s examine a perfect competition model of a short-run (hourly) wholesale electricity marketDemand SideDemand varies hour by hour, as weather conditions and desired electricity usage changeVery price inelastic – most retail customers pay fixed retail pricesSupply SideMost supply comes from fossil fuel generatorsFF supply is driven by cost of generation and capacities of generation units.Generation from renewables is intermittent
Fossil Fuel Generation a ...
हम आग्रह करते हैं कि जो भी सत्ता में आए, वह संविधान का पालन करे, उसकी रक्षा करे और उसे बनाए रखे।" प्रस्ताव में कुल तीन प्रमुख हस्तक्षेप और उनके तंत्र भी प्रस्तुत किए गए। पहला हस्तक्षेप स्वतंत्र मीडिया को प्रोत्साहित करके, वास्तविकता पर आधारित काउंटर नैरेटिव का निर्माण करके और सत्तारूढ़ सरकार द्वारा नियोजित मनोवैज्ञानिक हेरफेर की रणनीति का मुकाबला करके लोगों द्वारा निर्धारित कथा को बनाए रखना और उस पर कार्यकरना था।
03062024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
CLICK:- https://firstindia.co.in/
#First_India_NewsPaper
Future Of Fintech In India | Evolution Of Fintech In IndiaTheUnitedIndian
Navigating the Future of Fintech in India: Insights into how AI, blockchain, and digital payments are driving unprecedented growth in India's fintech industry, redefining financial services and accessibility.
31052024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
CLICK:- https://firstindia.co.in/
#First_India_NewsPaper
‘वोटर्स विल मस्ट प्रीवेल’ (मतदाताओं को जीतना होगा) अभियान द्वारा जारी हेल्पलाइन नंबर, 4 जून को सुबह 7 बजे से दोपहर 12 बजे तक मतगणना प्रक्रिया में कहीं भी किसी भी तरह के उल्लंघन की रिपोर्ट करने के लिए खुला रहेगा।
Welcome to the new Mizzima Weekly !
Mizzima Media Group is pleased to announce the relaunch of Mizzima Weekly. Mizzima is dedicated to helping our readers and viewers keep up to date on the latest developments in Myanmar and related to Myanmar by offering analysis and insight into the subjects that matter. Our websites and our social media channels provide readers and viewers with up-to-the-minute and up-to-date news, which we don’t necessarily need to replicate in our Mizzima Weekly magazine. But where we see a gap is in providing more analysis, insight and in-depth coverage of Myanmar, that is of particular interest to a range of readers.
01062024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
CLICK:- https://firstindia.co.in/
#First_India_NewsPaper
role of women and girls in various terror groupssadiakorobi2
Women have three distinct types of involvement: direct involvement in terrorist acts; enabling of others to commit such acts; and facilitating the disengagement of others from violent or extremist groups.
27052024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
CLICK:- https://firstindia.co.in/
#First_India_NewsPaper
ys jagan mohan reddy political career, Biography.pdfVoterMood
Yeduguri Sandinti Jagan Mohan Reddy, often referred to as Y.S. Jagan Mohan Reddy, is an Indian politician who currently serves as the Chief Minister of the state of Andhra Pradesh. He was born on December 21, 1972, in Pulivendula, Andhra Pradesh, to Yeduguri Sandinti Rajasekhara Reddy (popularly known as YSR), a former Chief Minister of Andhra Pradesh, and Y.S. Vijayamma.
In a May 9, 2024 paper, Juri Opitz from the University of Zurich, along with Shira Wein and Nathan Schneider form Georgetown University, discussed the importance of linguistic expertise in natural language processing (NLP) in an era dominated by large language models (LLMs).
The authors explained that while machine translation (MT) previously relied heavily on linguists, the landscape has shifted. “Linguistics is no longer front and center in the way we build NLP systems,” they said. With the emergence of LLMs, which can generate fluent text without the need for specialized modules to handle grammar or semantic coherence, the need for linguistic expertise in NLP is being questioned.
Reforming the Philippine Electric Power Industry Reform Act (EPIRA)
1. Genuine & Sustainable
Reforms in the Philippine
Electric Power Industry
Elvin Ivan Uy
Emerging Policies Forum II
22 May 2010
2. Executive Summary
Electricity rates in the Philippines is 3rd highest in Asia1
The Electric Power Industry Reform Act of 2001 (EPIRA)
aims to bring down power rates and improve delivery of
supply through greater competition and efficiency in the
industry. It has failed to achieve both.
3 necessary amendments to EPIRA:
1. Strengthen safeguards against cross-ownership and
abuse of market power
2. Reevaluate the practicability of the Wholesale
Electricity Spot Market (WESM)
3. Overhaul the Energy Regulatory Commission (ERC)
Beyond EPIRA: fast track implementation of Renewable
Energy Act of 2008
1 RP Power 3rd most costly in Asia: http://newsinfo.inquirer.net/breakingnews/regions/view/20100404-262343/RP-power-3rd-most-costly-in-Asia 2
3. Presentation Overview
1. Anatomy of High Electricity Rates
2. Nine Years After: A Review of EPIRA
◦ Privatization, Rent Seeking and the Power Oligarchy
◦ Gaming the WESM, Delays in Implementation of
Open Access and Retail Competition
◦ An Ineffectual ERC
3. Reforming EPIRA and the Power Industry
4. Securing a Sustainable Energy Future
Image from: http://rfestin.files.wordpress.com/2008/12/transco31aug07-0061.jpg 3
4. Anatomy of High Electricity Prices1
1. Lack of sufficient domestic fuel reserves – generation
companies forced to import fuel
2. Higher cost in transmission infrastructure due to
country’s topography, required resilience against
tropical storms & earthquakes
3. “Relatively peaky” electricity demand curve – little
baseload demand on a 24-hour basis due to lack of
strong industrial base
4. Most inputs sourced overseas – purchased at
international prices, subject to significant foreign
exchange risk
1 The IPP Experience in the Philippines: http://iis-db.stanford.edu/pubs/20816/PhilippinesIPP.pdf 4
5. Nine Years After: A Review of EPIRA
State-owned
EPIRA restructured1
the electric power
industry from…
to…
For privatization and/or
driven by private sector
1 ERC: http://www.erc.or.th/ERCWeb/Upload/Document/10.30-12.30%203Rauf%20A.%20Tan(Philippines).pdf 5
6. Privatization, Rent Seeking, and the
Power Oligarchy
EPIRA bars cross-ownership between generation/distribution
and transmission, but not between generation, distribution
and supply (Sec. 45)
Capacity share limits: 30% (regional), 25% (national)
Two families1 – Lopez & Aboitiz – have horizontal and
vertical market power; acquired 10 out of 20 privatized NPC
generation plants to date
Generation Luzon Visayas Mindanao National
Lopez 19.8% 53% 5.6% 15%
Aboitiz 12.3% 6.53% 35% 14%
Distribution
Lopez Meralco – largest distribution utility, serves Luzon
VECO and Davao Light & Power Co – 2nd and 3rd
Aboitiz
largest, serve Visayas and Mindanao, respectively
1 From state monopoly to de factor electricity oligarchy, People Against Immoral Debt Vol. 13 No. 1 pp. 7-27
6
7. WESM, Open Access and Retail
Competition
• WESM – trading place between electricity buyers and sellers via auctions that
match bids for demand and supply
• Must be established within 1 year from effectivity of EPIRA (Sec. 30)
• Launched in June 2006 and only for Luzon1
Figure from ERC
1 Why WESM Won’t Work, People Against Immoral Debt Vol. 13 No. 1 pp. 43-54 7
8. Gaming the WESM
• Mechanism is prone to gaming, in theory1 and in practice2
• Electricity sourced through WESM was more expensive3
• Distributors obtain electricity largely through bilateral4 contracts,
EPIRA allows them to source up to 90% bilaterally and up to 50% from
their affiliates (Sec. 45b and 45c)
Figure from: WESM Overview – http://asianenergyadvisors.pbworks.com/f/WESM-Overview.pdf
1 Rethinking Electricity Deregulation, Elsevier The Electricity Journal Vol. 17 No. 8 pp. 11-26
2 Lessons from the Failure of U.S. Electricity Restructuring: http://repository.cmu.edu/cgi/viewcontent.cgi?article=1236&context=tepper
3 Why WESM Won’t Work
4 14th EPIRA Status Report: http://www.doe.gov.ph/EP/14th%20EPIRA%20Status%20Report.pdf 8
9. An Ineffectual ERC
ERC tasked1 to “ensure adequate promotion of
consumer interests”, and “promote competition,
encourage market development, ensure customer
choice and penalize abuse of market power”
Has the authority to approve rate hikes and act on
complaints regarding anti-competitive behavior
Dismissed complaints from PEMC (WESM operator)
due to “lack of evidence”:
1. PSALM trading teams simultaneously2 raised MCP for 3 plants
2. Meralco3 bought more from WESM when its IPPs were price
setters next to 2 other NPC plants
Arguably a case of regulatory capture
1 Sec. 41
and 43 of EPIRA
2A commission of power: http://pcij.org/stories/a-commission-of-power
3 Why WESM Won’t Work 9
10. Necessary Amendments to EPIRA
1. Total ban on cross-ownership in transmission,
generation, distribution and supply
2. Restriction on firms with vertical market power from
further acquisition of NPC generation assets
3. Clearer guidelines on the regional generation capacity
share limits to curb horizontal market power
4. A lower limit on the amount of supply that may be
sourced through bilateral contracts by a distribution
utility from its affiliate generation firm
10
Image from: http://cdn.wn.com/ph/img/bb/49/1099a26a93557b0e8c74dbd1a62b-grande.jpg
11. Reevaluate the Practicability of WESM
Pay-as-bid pricing will not solve gaming issue1
An administered2 market will not be sustainable
Free and competitive market requires numerous
companies that do not have horizontal market power;
needed investments are prohibitive
If WESM cannot be made competitive, limit amount of
electricity sourced from the spot market
Enforce better regulation of bilateral contracts – place
generation as close to average cost as possible, allow
agreements to span life of generation plants3
1Rethinking Electricity Deregulation
2Lessons from the Failure of U.S. Electricity Restructuring
Image from: http://thinkgeoenergy.com/wp-content/uploads/2010/03/Tongonan_plant_Philippines.jpg
11
12. Securing a Sustainable Energy Future
Reforming the electric power industry both a technical
and adaptive challenge
Renewable Energy Act – addresses technology gaps of
EPIRA, encourages broader market participation1 in
renewables sector; must fast track implementation
Overhaul the ERC – ensure appointment of
commissioners based on competence and integrity,
remove2 power to grant provisional authority to firms
Decisive and strong leadership from Congress,
Department of Energy and ERC
1 Energy [R]Evolution, A Sustainable Philippine Energy Outlook: http://www.greenpeace.org/raw/content/seasia/en/press/reports/energy-r-evolution-a-sustain.pdf
2 A Dozen Ways to Reduce Electricity Rates Towards Sustainable and Pro-Consumer Electric Power Industry, People Against Immoral Debt Vol. 13 No. 1 pp. 58-59 12
Editor's Notes
3. Little baseload demand to help defray cost of installing facilities to cover peak demand
TRANSCO privatized in 2008, now NGCP81% of NPC generation assets in Luzon & Visayas have been privatized
VECO – Visayan Electric CompanyERC rules on generation capacity and market share limits coupled with ownership structure of companies prevent any corrective action. Both Lopez & Aboitiz continue to acquire and consolidate market power.
cost-efficient dispatch of power through economic merit orderReliable price signals for players to weigh investment optionsFair and level playing field for suppliers and buyers of electricityMO is PEMC, SO is NGCPLaunched behind schedule due to delays in privatization of NPC assets; trial operations for Visayas began in March 2009, no specific date for commercial launch
Hourly auctions, 24 trading periods daily for next day’s requirementsMCP – where last supply bid meets last demand requirementLowest bid dispatched firstSettlements through WESMMore expensive – data from January 2007 to March 2008, comparing NPC, IPPs and WESMTheory: SaroshTalukdar (CMU Electrical & Computer Engineering) simulation with 10 firms, each having 10% of system capacity. Firms not as smart as human traders and learn slowly. Even when capacity is twice the amount of electricity needed, suppliers managed to raise price to monopoly levelsPractice: hourly spot market auctions in US fostered tacit collusion among participating generators. Pivotal supplier problem (firm has enough capacity and withholding it can cause blackout) – single firm or group of firms colluding explicitly or implicitly. Lopez-owned IPPs routinely bid zero to ensure dispatch.
ERC investigated the wrong parties, disregarded evidence from PEMCIPPs were the pivotal supplier, able to set price
Strengthen safeguards against cross-ownership and abuse of market power
Pay-as-bid done in UK and failed. Generators still able to game spot market, tacit collusion and pivotal supplier problem persistAdministered market is what we tried to reform 9 years ago
Luzon – natural gas, Visayas – geothermal, Mindanao – hydro, nationwide – natural gas, coal, geothermal, hydroRenewable Energy Act – market participation enabled through feed-in tariff system, implemented in 42 countries/states/regions, responsible for uptake in renewable electricity capacity and generation