Demand-Side Management in Visayas: Why Another Route?

Wholesale Electricity Spot Market (WESM) proposed Visayas Supply Augmentation Auction (VSAA) Program which was approved by the Energy Regulatory Commission (ERC). The VSAA is aimed for demand-side management (DSM) in Visayas where interruptible load of embedded generators will be auctioned just like a competitive market. Please see approved proposed VSAA.

There have been reports that Visayan Electric Co. (Veco) has been practicing (DSM) by having interruptible contracts to its consumers. See this link: Veco, firms to sign power deal.

My question is this: Veco has a working DSM model system. Was there a study providing benefits of a market based DSM compared to the existing practice? Is there a need for a market based DSM that would add another fraction of peso to the rates being charged?

With ERC's approval, market based DSM will go through WESM instead of having Veco and its consumers taking directly. There might be added cost to that. You can say this is only Veco, how about the other distribution utilities? Well, the Veco model works as reported, why not adapt the model that works fine.

Why another route?

Demand Side Management in Visayas: Making It Work

As Visayas is having power problems, demand side management brings new opportunities to alleviate need for investments in new generation.

Inquirer reports...Ten major commercial establishments in Cebu let go of at least 174,847 kilowatt hours (kwH) of power from the local power grid over the past two weeks, allowing more electricity to be used by residences.

The “deloading” from the power grid was made by firms which relied on their own backup generators during periods of peak demand for electricity in Cebu.

See link for full report: Firms start power deload

Now You're Talking

The Institute of Integrated Electrical Engineers of the Philippines Inc.(IIEE), a group for local electrical engineers warned electric grid operator National Grid Corporation of the Philippines against employing foreign nationals as engineers to run the country’s power distribution network.

Read full article at Inquirer website - Grid firm warned vs hiring foreign engineers.

This is one concrete benefit of having a professional organization looking out for the welfare of its members. To IIEE, mabuhay!

Interruptible Load Application in the Philippines

Power drops 30 MW
Posted 01:43pm (Mla time) (Mla time)
By Cris Evert Lato
Cebu Daily News

A 30-megawatt (MW) power shortage last Tuesday forced a mall and hotel in Cebu City to rely on its own generator sets for one hour and reduce its demand on the Visayan Electric Co. (Veco). [ Read more ]

VECO Application to the Energy Regulatory Commission