UNDERSTANDING THE

ENERGY
SUPPLY CHAIN
Engr. Eduardo B. Fernandez

E-Power Mo: Energy Consumer and Stakeholders Conference

12 July 2017 | Philippine International Convention Center, Pasay City

Department of Energy
Empowering the Filipinos
 PRESENTATION OUTLINE

1 2

Power Demand and What is WESM

Supply Chain • WESM Basic Features
• Power Myth • How WESM bidding
• Transformation of fuel works
into electricity • RTD Scenarios
• Types of Power Plant
Power Demand and Supply Chain

TRANSMISSION

DISTRIBUTION
GENERATION

CONSUMERS

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Reality Check

Bakit sobrang mataas ang

presyo ng ating kuryente?

Mali ba ang composition ng power

Bakit parang mas mababa generation mix ng ating bansa?
ang presyo ng kuryente
nung panahon ng NPC?

Bakit mas mataas ang presyo Tama nga ba na

ng kuryente natin compared privatized ang planta ng
sa ibang ASEAN countries? NPC?

Kaya ba mataas ang

ating power rate gawa ba
ng WESM?

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Transformation of fuel into electricity

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NPC Assets

 NPC Power
Plants 121
(11,361 MW)
 Transmission
lines
(10,494 ckt. km.)
 Substation
Capacity
(20,041 MVA)

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NPC Assets

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 Types of Power Plant

GENERATION Base Load Plants CUSTOMERS

• Plants which can generate dependable power to consistently meet demand

• Produce continues, reliable and efficient power at low cost
• Run 24/7 throughout the year except in cases of repairs or scheduled maintenance

600 MW 610 MW
1294 MW Pagbilao Coal-fired Power Plant Leyte Geothermal Power Plant
Sual Coal-fired Power Plant

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 Types of Power Plant

GENERATION Intermediate Load Plants CUSTOMERS

Fill the gap between base load and peaking plants

• Larger than peaking plants so the construction cost are higher
• They also run more efficiently

500 MW
1060 MW 1200 MW San Lorenzo Natural Gas-fired Plant
Sta Rita Natural Gas-fired Plant Ilijan Natural Gas-fired
Plant

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 Types of Power Plant

GENERATION Peak Load Plants CUSTOMERS

• Provide power during peak system demand period

• Higher responsive to changes in electrical demand and can be started up
relatively quickly (Hydroelectric Power Plant)
• Very expensive to operate, relative to the amount of power they produce and
the cost of fuel to power them (Oil-based power plant)

116 MW 360 MW 755MW

Subic Diesel Power Plant Magat Hydroelectric Power Plant CBK Hydroelectric Power
Plant

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Typical Load Curve

Peak
Reserve Margin
Requirement

MW Intermediate

Base load

TIME OF DAY

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Stacking of Power Plants

GENERATION
DIESEL
10,000

OIL THERMAL
8000
HYDRO

6000

NATURAL GAS

4000

2000 COAL

MW GEOTHERMAL

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Coal Power Plant

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 Pagbilao Power Plant
2 X 382 MW, Isla Grande-Quezon

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Natural Gas Power Plant

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Natural Gas Combined Cycle Power Station
1,200 MW Ilijan, Batangas

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Hydro Electric Power Plant

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Magat Hydroelectric Power Plant
360 MW Santiago City / Alfonso Lista, Ifugao / Ramon, Isabela

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WESM Stakeholders

GENERATORS TRANSMISSION

DISTRIBUTION

CONSUMERS

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How WESM Bidding Works

G G
DUs/EC
NPC Market Clearing
s
Plants Results:
4  Energy 2

G
demand
MCPs and MOT  Reserve
requirements

 Energy 1
offers/bids System Condition:
NPC IPPs  Reserve • Outages 3
offers • Contingencies

G
• Transmission limits
7
Billing & Settlement
Dispatch
Charges & Payments
Instruction
IPPs s:
Dispatch 5
G
G
targets

Revenue Meters: NGCP

Metered values
6
IPPAs

G
WESM Basic Features

GROSS POOL - All energy transactions are scheduled in the market

GROSS DISPATCH - Generators submit energy offers (price

and Quantity) for central scheduling and dispatch

TRADING HOURS - 24 hours/day, 7 days per week

LOCATIONAL MARGINAL PRICE - Marginal price

computed at each node or location to reflect
transmission loss and/or congestion
WESM Basic Features

GOVERNANCE - Governed by stakeholders (PEMC)

TRADING GUARANTEES - Prudential guarantees to assure payment

NET SETTLEMENT - Bilateral Contract quantities transacted in

the pool, but, can be settled outside of the market. Ex-ante price
and quantity aligned with ex-post price and quantity

BILLING & SETTLEMENT - 60 days period for B&S

How WESM Bidding Works

• WESM

GENERATION CUSTOMERS
DUs/ECs

Hydro C Geogas F Diesel H

P 0,000/MWh P P 4,000/MWh
25 MW 3,000/MWh 200 MW
150MW

Hydro B
50 MW
P Natgas E Roxas Boulevard Demand
1,000/MWh -P
Bunker G Requirements: 600 MW
1,000/MWh
100MW P 3,500/MWh
Wind/Solar
300 MW
5 MW
Priority
Dispatch Coal D
P 2,500/MWh
115 MW

Run-of-River
50 MW Biomass
Non- 5MW
Scheduled Priority
Dispatch
Merit Order Table
Market Clearing Price - Php 3,500/MWh (marginal cost of meeting demand)
Marginal Plant – Bunker G
Price Taker

P/MWhr
600 MW
4,000

3,000

2,000

1,000

300 400 550 MW

Geogas F Bunker G Diesel H
Hydro B Coal D
P 3,000/MWh P 3,500/MWh P 4,000/MWh
50 MW P
150MW 300 MW 200 MW
P 1,000/MWh 2,500/MWh
Biomass Hydro C 115 MW
5 MW Non- Natgas E P
Plant Solar/Wind Priority 0,000/MWh
5 MW scheduled -P
Pmin Dispatch Plants 25 MW
Must 1,000/MWh
Dispatch 100MW
Merit Order Table

P/MWhr
600 MW
4,000

3,000

2,000

1,000

300 400 550 MW

Geogas F Bunker G Diesel H
Hydro B Coal D
P 3,000/MWh P 3,500/MWh P 4,000/MWh
50 MW P
150MW 300 MW 200 MW
P 1,000/MWh 2,500/MWh
Biomass 115 MW
5 MW Non- Natgas E
Plant Solar/Wind Priority
5 MW scheduled -P
Pmin Dispatch Plants
Must 1,000/MWh
Dispatch 100MW
Merit Order Table
Market Clearing Price - Php 4,000/MWh (marginal cost of meeting demand)
Marginal Plant – Diesel H
Price Taker

P/MWhr
600 MW
4,000

3,000

2,000

1,000

300 400 550 MW

Geogas F Bunker G Diesel H
Coal D
P 3,000/MWh P 3,500/MWh P 4,000/MWh
P
150MW 300 MW 200 MW
2,500/MWh
Biomass 115 MW
5 MW Non- Natgas E
Plant Solar/Wind Priority
5 MW scheduled -P
Pmin Dispatch Plants
Must 1,000/MWh
Dispatch 100MW
Merit Order Table

P/MWhr
600 MW
4,000

3,000

2,000

1,000

300 400 550 MW

Geogas F Bunker G Diesel H
Coal D
P 3,000/MWh P 3,500/MWh P 4,000/MWh
P
150MW 300 MW 200 MW
2,500/MWh
Biomass 115 MW
5 MW Non- Natgas E
Plant Solar/Wind Priority
5 MW scheduled -P
Pmin Dispatch Plants
Must 1,000/MWh
Dispatch 100MW
Real Time Facility Status

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Empowering the Filipinos
 Thank You!
DOE-Electric Power Industry Management Bureau (EPIMB)
Power Market Development Division (PMDD)
(+632) 479-2900
840-1773
name@doe.gov.ph
edoe2013@gmail.com
www.doe.gov.ph
//doe.gov.ph
@doe_ph

Department of Energy
Empowering the Filipinos