WESM operations and various relevant .pptx

WESM

1. COMPETITIVE SELCTION PROCESS (CSP) PHASES OF POWER SUPPLY PROCUREMENT PHASE 1 PHASE 2 PHASE 3 1. Pre-Bid - Conferences & Clarification 2. Tender Period - Bid Preparation & Submission Estimated Timeframe: 3 – 6 months 1. Bid Evaluation 2. Bidder Selection 3. Negotiations 4. Power Supply Contract Estimated Timeframe: 2 months 1. Regulatory Approvals 2. Negotiation of Project Agreements 3. Achieving Financial Close Estimated Timeframe: 6 months

2. HOW TO ACHIEVE LEAST-COST POWER SUPPLY

3. POWER SUPPLY PLANNING – Demand Forecasting Forecasting Data Formulation of Forecasting Model Validity & Accuracy Test Forecast demand using the best forecasting model Load Forecasts Failed Statistical tests for validity Maximum Forecast Error = 3%

4. COMPETITIVE SELCTION PROCESS (CSP) CONTRACT PRICE STRUCTURE (PHYSICAL PSA) TGC = CRF + FOM + VOM + FF Adj Where: TGC – Total Generation Charge CRF – Capital Recovery Fee (detailed/defined in the Bid Documents) FOM – Fixed Operation and Maintenance Fee (detailed/defined in the Bid Documents) VOM – Variable Operation and Maintenance Fee (detailed/defined in the Bid Documents) FF – Current Fuel Fee calculated as: FF Adj = FF base *( FO current / FO base Where: FF base – Base Fuel Fee as defined in the Bid Documents FO current – Current cost of fuel FO base – Base cost of fuel

5. DIFFERENT TYPES OF POWER PLANTS Hydroelectric Power Plant At hydro power plants, water flows through a pipe, or penstock, then pushes against and turns blades in a turbine that spin to power a generator to produce electricity. Coal-Fired Thermal Power Plant Produce electricity by burning coals in a boiler to produce steam. Under tremendous pressure, the steam which flows into a turbine, which spins a generator to create electricity. Geothermal Power Plant Draws fluids underground reservoirs to the surface to produce heated materials. The steam then drives turbines that generate electricity. Combined-Cycle Gas Turbine Power Plant Uses both gas and a steam turbine together to produce electricity. Biomass Power Plant A type of renewable energy derived from organic material such as plant, animal, or other organic matter which can be converted into electricity through combustion, gasification, or fermentation/ methanisation . Diesel Power Plant Uses diesel engines to produce electricity with fuels such as bunker C (Heavy Fuel Oil) and Diesel (Light Fuel Oil) Wind Power Plant Uses wind turbines wherein the energy in the wind turns two or three propeller-like blades around a rotor which is connected to the main shaft, which spins a generator to create electricity. Solar Power Plant A facility that converts solar radiation, made up of light heat and ultraviolet radiation, into electricity.

6. COMPETITIVE SELCTION PROCESS (CSP) ELEMENTS OF CSP FOR POWER SUPPLY PROCUREMENT

7. WHOLESALE AND RETAIL ELECTRICITY MARKET Competitive Generation Companies GenCos Regulated Transmission Utility NGCP/TRANSCO Regulated Distribution Utility PDU/EC Competitive Retail Electricity Suppliers RES Bilateral Contract SPOT MARKET

8. WHOLESALE ELECTRICITY SPOT MARKET Core Principle of the Pricing and scheduling in the WESM Market Clearing Price Merit Ordering The process of ranking generation capacities from the cheapest offer to the highest order Price ( PhP /MWH) Quantity (MW) Plant A 200MW Plant B 200MW Plant C 200MW 3000 400 5 00 600 4600 6200 200 Example: > Market Price for a 500MW Energy Requirement in a certain interval

9. Thank You !