DOE holds go signal for WESM in Cebu

While the Wholesale Electricity Spot Market (WESM) is considered to be the lone savior of Cebu’s projected power supply shortage in the next two years, the definite schedule for the facility’s commercial operation here is still a big question mark.

In an interview with WESM President Lasse Aznar Holopainen he said the WESM Visayas facility has been ready, he just does not know why the Department of Energy (DOE) is taking its time to declare the “go signal” for its commercial operation.

“I have no idea anymore. We submitted all compliances as well as requests for direction a few times already still no response,” Holopainen told The Freeman.

During a forum hosted by the Cebu Chamber of Commerce and Industry (CCCI) dubbed “Cebu Power: Issues, Challenges and Beyond,” businessmen were told that Cebu could experience a “power crisis” especially in 2009, as the demand for power is expected to rise.

In his presentation Visayan Electric Company (VECO) Power Procurement and Regulatory Affairs (PPRA) manager Ricardo B. Pardillo reported that a 15 megawatt power deficit is expected to happen in the first and second half of 2009, if VECO will not be able to find source for its added power requirement.

This report alarmed the business sector, and questioned the delayed commercial operation of the WESM.

Cebu Private Power Corporation (CPPC) general manager Roger Lim said if WESM were on commercial operation now, Cebu should not be worry of the looming power shortage.

“There are a lot of opportunities if WESM is operating now. We are all ready, we just don’t know why WESM is not,” said Lim, who is also a board of director of the Cebu Investments and Promotions Center (CIPC.)

“Let WESM operate, and we don’t have to worry of future power shortage,” Lim stressed.

Holopainen said while they have already done their part to get the facility ready, even before the original schedule set by DOE on January 26, 2008, the fate of WESM-Visayas is now the in the hands of DOE.

“Now, its up to DOE when are they going to have the facility run and help secure the power supply in Cebu, or in the Visayas,” he said.

“We don’t know what to do anymore. We have been on trial operation for years now,” Holopainen said adding that the operator of WESM,Philippine Electricity Market Corporation (PEMC) had already spent large amount of money for the trial operation, which started in 2005.

“It’s expensive to maintain a non-running facility,” added Holopainen expressing that DOE should set a timetable when are they going to start, or else PEMC will continue to waste money for the idle facility.

“We have been writing to DOE to ask them the time table, but they are not replying to our communications,” he added.

On the other hand, in an earlier report, DOE announced that the WESM-Visayas facility delay is caused by the ongoing third party assessment or evaluation, which is done by a foreign consulting agency, Intelligent Energy Systems (IES).

“If only WESM is operating now, we don’t have problem of power supply between 2009 and 2010,” Lim reiterated.

According to Lim there are so many hidden (power supply) capabilities in the region right now, but are not exposed yet.

WESM serves as a centralized venue for buyers and sellers to trade electricity as a commodity where its price is based on actual demand and availability or supply. –/NLQ