Trading Operations in the

Philippine WESM

Philippine Electricity Market Corporation

Objectives
Familiarize the participant with the WESM operations.
Describe the responsibilities of the different entities involved,
specifically the Trading Participants, the Market Operator, and the
System Operator.
Provide an overview of the scheduling and dispatch in WESM
Establish the WESM Timetable
Show an illustration of the dispatch implementation

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 Dispatch Protocol Issue 6.0
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)
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
3

Scheduling and Dispatch Procedures

Prior to WESM Operations
Scheduling and dispatch of generating facilities were the sole
responsibility of SO
SO was also responsible in demand forecasting
Generating facilities were required to submit daily nominations of
capacities they want to be scheduled for dispatch on the following
day
Regardless of contractual commitments of generating units, the SO
shall prepare a day-ahead generating schedule using the
nominations considering system conditions and requirements such
as (1) load forecasts, (2) weather forecasts, (3) reliability and
security standards, and (4) scheduled outages
Week-ahead nominations were also required by SO

Scheduling and Dispatch Procedures

Prior to WESM Operations
Nomination of
available capacities

1
2
3
4

System
Operator
Forecast of demand
Scheduling
- forecast (load and weather)
- security and reliability
- scheduled outages

Day Ahead
Schedules
Energy and
Reserve

The Day-Ahead schedules shall be implemented by SO subject

to changes at real-time (forecast error, tripping, etc.)

Scheduling and Dispatch upon

Establishment of WESM Operations
WESM was established as the trading platform of energy
transactions in grids with WESM operations (Luzon and Visayas)
WESM was also established as the central platform for the
scheduling and dispatch of generating facilities with WESM
operations
SO is still responsible in the dispatch of generating units at realtime
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
6

Responsibilities in WESMs
Scheduling and Dispatch
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

MO Responsibilities in
Scheduling and Dispatch
Maintenance of the Market Network Model (MNM) in coordination
with the SO
Generation of dispatch schedules using the MDOM
Transmittal of dispatch schedules to the SO for implementation

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 defined 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)
9

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

10

Scheduling and Dispatch upon

Establishment of WESM Operations

11

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)

12

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
13

WESM Timetable: WAP

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

Execution of WAP at Day D

D-1

D+1

D+2

Study Period of WAP at Day D

(From D+1 to D+7)
D+3

D+4

D+5

TRADING DAYS

D+6

D+7

D+8

D+9

14

WESM Timetable: WAP

WAP is executed at 0900H of each trading day

Prior to 0900H, the

following activities are
made for D+1 to D+7
Gathering of weather
forecasts
Preparation of
demand forecasts
Submission or
revision of bids and
offers

TRADING HOURS

10

11

12

13

14

15

WAP Results and Analysis

Coordination with SO

WAP Execution

The latest information provided by

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

16

17

18

19

Publish WAP
Results in WEB

15

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) 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
Latest available system snapshot
16

WESM Timetable: DAP

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

0400H DAP

DAP Results Analysis

Coordination with SO

0800H DAP

TRADING HOURS

10

11

12

13

1200H DAP

14

15

16

17

18

19

1600H DAP

DAP Results Analysis Coordination with SO is done

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

17

WESM Timetable: DAP

DAP Study Period
DAP Run at
Current 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

18

WESM Timetable: RTD

The Hour-Ahead or Real-Time Dispatch 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
The dispatch schedule is the target MW loading of all Trading
Participants at the end of a trading interval

19

WESM Timetable: RTD

RTD is executed every 55th minute of the hour
RTD Execution for
Trading Hour HH

The latest information

provided by SO prior to
each DAP run shall be used
Gate Closure for
bids and offers

40

50

HH-2

00

10

20

30

Target Interval HH

Trading Interval HH
40

HH-1

50 0 0 10

Transmit RTD Schedules

and MOT to SO
Publish results in WEB

20

30

40

HH

50

00

Dispatch Implementation
for HH to meet Target
Schedule

10

20

30

HH+1

40

20

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)

21

WESM Timetable: RTX

RTX is executed every 1st minute of the hour

The latest information

provided by SO prior to
each DAP run shall be used

RTX Execution for

Trading Hour HH

Trading Interval HH

40

50

00

HH-2

10

20

30

40

50 0 0 10
HH-1

20

30

40

50

00

HH

10

20

30

40

HH+1

22

During Normal Conditions

Majority of the day-to-day activities in the market fall under the
category of normal conditions
WESM Tasks during Normal System Condition
Activities

Procedure in the
Dispatch Protocol

Bids and Offers

Appendix A.1

Outage Scheduling

Appendix A.3

Demand Forecasting
Contingency Planning

Pre-Dispatch Market Projections

Real-Time Dispatch Schedule
Dispatch Implementation
System Status Report
Post Dispatch Report

Market Information Publication

Daily Operational Report

Appendix A.2
Appendix A.4
Appendix A.5
Appendix A.6

Appendix A.7
Appendix A.8

Responsible Group
MO
X
X
X
X

Appendix A.9

Appendix A.11

Appendix A.10

SO

X
X
X
X
X

23

During Emergency Conditions

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
Classification of Emergency Events
Market Operations
Market Failure
Medium-term
supply deficiency
Effects of force
majeure events

MMS Failure
Communication
network
Breakdown
Computer
systems failure

Site-related
Emergencies

System Operations
System Failure
Total system
Collapse

Grid Islanding or
Isolation
Multiple forced
Outages

Threat to system
Security

EMS Failure
Communication
network
Breakdown

Computer
systems failure
Site-related
Emergencies

24

During Emergency Conditions

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
WESM Tasks during Normal System Condition
Activities

Procedure in the
Dispatch Protocol

System Emergency and Restoration

MO

SO

--

--

Market Suspension and Intervention

Appendix B.2

Report and Documentation of Events

--

EMS Disaster Recovery Procedures

MMS Disaster Recovery Procedures

Responsible Group

--

X
X

X
X

25

Sample Normal Dispatch Process

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

RTD WORKFLOW
RUN FOR 0900H

SUBMISSION OF SO
OVERRIDING CONSTRAINTS

7:00 AM

8:00 AM

9:00 AM

26

Sample Normal Dispatch Process

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

RTD SCHEDULES

DEVIATIONS ARE
REPORTED TO MO IN
CONSIDERATION OF
NON-COMPLIANCE AND
MUST-RUN UNITS

SYSTEM OPERATOR

FOR IMPLEMENTATION

FINAL DISPATCH INSTRUCTIONS

WILL COME FROM SO

FOR INFORMATION
TRADING PARTICIPANTS
C

A
B

27

End of Presentation