PDP 2023-2050 Ch.3 — Power Sector Roadmap (Electricity Market / Off-Grid / Total Electrification / Overarching)

Source: raw/_pdf/planning-docs/pdp-2023-2050.pdf pp. 116–131 (PDF offset = 0) Chapter: 3 — Power Sector Roadmap 2023-2050 (Short-, Medium-, and Long-Term) Pass: Ch.3 Pass 2 of 2

5. Electricity Market Roadmap (pp.116–119)

WESM Mindanao (DC2022-12-0039)

DC2022-12-0039 (23 December 2022) declared commercial operation of WESM in Mindanao from 26 January 2023. Pending TPs were deemed registered with compliance deadline originally 25 April 2023, extended via Advisory (26 April 2023) to 25 June 2023 [PDP 2023-2050, Ch.3 Sec.5.1, p.116–117, 2025].

A further Advisory (11 May 2023) declared Single Settlement for Luzon, Visayas, and Mindanao beginning the May 2023 billing period, triggered by actual energy flow through MVIP. The integration of Mindanao into WESM is described as achieving “one grid, one market” — 17 years after WESM’s Luzon launch (2006) and 13 years after Visayas (2010) [PDP 2023-2050, Ch.3 Sec.5.1, p.117, 2025]. See Wholesale Electricity Spot Market (WESM) .

Reserve Market — DC2021-03-0009 Framework

DC2021-03-0009 (“Adopting A General Framework Governing the Operationalization of the Reserve Market in the Wholesale Electricity Spot Market”) defines the Reserve Market framework. Salient features [PDP 2023-2050, Ch.3 Sec.5.2, p.117–118, 2025]:

1. Co-optimization of energy and reserves; protocols for offer submission and dispatch scheduling
2. Operational cap, locational reserve sharing, and scarcity hierarchy for reserves
3. Tradeable AS categories with minimum technical specifications and required levels
4. Criteria for system/market readiness and responsibilities of power industry participants
5. Appropriate pricing, billing, settlement, mitigating measures, and cost recovery mechanisms (consumer protection)

The Circular also introduced supplemental policies on AS accreditation of third-party testing entities and CSP for SO’s AS contracts.

Trial Operations Program (TOP): Commenced via DOE Advisory (26 June 2023). TOP results are non-binding. Commercial operations targeted by end of 2023 (actual: 26 September 2023 per DC2023-09-0026) [PDP 2023-2050, Ch.3 Sec.5.2, p.118, 2025]. See Reserve Market and Electricity Derivatives (WESM) .

Phase 2 (medium-term) will incorporate Philippine Grid Code 2016 reserve classification and corresponding technical specs [PDP 2023-2050, Ch.3 Sec.5.5, p.118, 2025].

Electricity Derivatives Market (CfD)

IEMOP is conducting an ongoing study of the Electricity Derivatives Market (CfD). CfD provides price hedging from volatile WESM prices, minimizes pricing risk, and incentivizes least-cost electricity delivery. IEMOP would act as Electricity Derivatives Market Operator subject to SEC compliance. Higher RE penetration will require more AS — market design enhancements (including demand side participation) are essential [PDP 2023-2050, Ch.3 Sec.5.4/5.6, pp.155–167, 2025]. See Reserve Market and Electricity Derivatives (WESM) .

Renewable Energy Market (REM)

REM involving Renewable Energy Certificate (REC) trading will support RPS compliance. Regular updating of RE Market Rules and Manuals pursued [PDP 2023-2050, Ch.3 Sec.5.3, p.118, 2025].

6. Off-Grid Development Roadmap (pp.119–123)

Omnibus Policy and Small Grid SO (DC2021-11-0039)

MEDP 2024-2028 will be issued to update 2021-2025 MEDP. DOE will evaluate DC2019-01-0001 for supplemental policy on data management and analytics. DOE shall monitor TransCo’s implementation of plans as Small Grid SO — including its role in capacitating DUs to formulate island interconnection development plans (integrated in DDP) [PDP 2023-2050, Ch.3 Sec.6.1, p.119–120, 2025]. See Universal Charge for Missionary Electrification (UC-ME) and Island Grid Interconnection .

UC-ME Subsidy Rationalization Plan

Each off-grid DU must develop a holistic UC-ME Subsidy Rationalization Plan — forming part of its annual DDP and PSPP submissions to the DOE. Four major rationalization strategies [PDP 2023-2050, Ch.3 Sec.6.2, pp.120–121, 2025]:

(a) Interconnection — main grid tie-in terminates UC-ME; for MGSPs, extending distribution lines to unserved areas (b) RE and emerging technologies — entry of low-cost RE and hybrid microgrids on supply side; capacity building for off-grid DUs to conduct CSP (c) Demand and consumer — rationalize SAGR; prioritize low-income consumers; reduce overall UC-ME subsidy commensurate with economic progress (d) Energy efficiency — implement EEC programs at consumer level to offset high off-grid generation costs

See Universal Charge for Missionary Electrification (UC-ME) .

Off-Grid RPS (DC2023-05-0014)

DC2023-05-0014 — “Promulgating the Revised Rules and Guidelines Governing the Operationalization of the Renewable Portfolio Standards for Off-Grid Areas Pursuant to Section 12 of the Renewable Energy Act of 2008” — requires Mandated Participants in off-grid areas to source/maintain a certain percentage of generation from eligible RE resources, consistent with the optimal supply mix per off-grid area [PDP 2023-2050, Ch.3 Sec.6.4, p.121, 2025].

Off-Grid Modernization

Policy supplement to Rule 8 of the Omnibus Policy will promote SCADA, modern telemetry, communication systems, and other advanced devices for off-grid power system management. Island intraconnection study by TransCo to explore connectivity solutions for economic development and sustainability [PDP 2023-2050, Ch.3 Sec.6.3/6.7, pp.120–121/122, 2025].

7. Total Electrification Roadmap (pp.123–127)

NTER

NTER targets 100% household electrification by 2028. Baseline: 96.17% as of December 2022 (PSA-POPCEN 2015) — 879,232 unserved households remain. Unserved areas include remote/island/indigenous communities, mountainous regions, and geographically isolated areas. Technologies: microgrids, household connections, distribution line extensions, PV-SHS. Stakeholders: DOE (oversight), NEA, NPC, 149 DUs, LGUs, private sector, communities [PDP 2023-2050, Ch.3 Sec.7.1, pp.122–124, 2025].

Revised projected targets will be released based on 2020 Census once NTER is finalized. See National Total Electrification Roadmap (NTER) 2023-2032 .

MGSP-CSP

First batch CSP to be conducted Q4 2023 via transparent CSP (auction, unsolicited proposal, or Swiss Challenge). Batches prioritized by viability, household count, and total demand as projected by concerned DUs (coordinated with DUs, NPC, NEA). Full NTER coverage achieved in batches with invitations-to-bid [PDP 2023-2050, Ch.3 Sec.7.2, p.123–124, 2025]. See Mindanao Modular Generator Sets (Gensets) Program .

RA 11646 Supplemental Policies

Three supplemental policies under RA 11646 (Microgrid Systems Act) [PDP 2023-2050, Ch.3 Sec.7.3, pp.123–125, 2025]:

(a) LTER Development Guidelines — DUs must integrate Local Total Electrification Roadmap (LTER) in DDP per RA 11646 Sec.15; supplemental guideline to institutionalize LTER submission; replaces barangay and household electrification provision of existing DDP

(b) ER 1-94 allocation policy — EF resumed to intended electrification purpose (COVID-19 state of public health emergency lifted); supplemental guideline for equitable allocation to DUs hosting power plants and serving host communities

(c) LFP-TEP policy revision — Expand LFP-TEP implementers beyond NEA and NPC to include Higher Educational Institutions (HEIs), Non-Governmental Organizations (NGOs), and qualified Distribution Utilities to accelerate total electrification by 2028

New Electrification Tools

Visual Mapping Platform (PhilSA): DOE developing platform using Philippine Space Agency satellite imagery for validation of NTER target unserved areas; real-time area profiling for MGSP-CSP due diligence and monitoring of communities served by MGSP and off-grid solutions [PDP 2023-2050, Ch.3 Sec.7.4a, p.125, 2025].

Crowdsourcing App (Phases 1-2): DOE developing platform for voluntary reporting of unenergized household locations, enabling DOE/NEA/NPC/DUs and third-party implementers to identify unelectrified areas and implement appropriate solutions [PDP 2023-2050, Ch.3 Sec.7.4b, p.125, 2025].

PVM Dashboard: Already launched — Microgrid System and Photovoltaic Mainstreaming dashboard covering existing installations, statistics, and comprehensive listings [PDP 2023-2050, Ch.3 Sec.7.4, p.125, 2025].

8. Overarching Policies and Programs (pp.127–131)

Automated Reportorial Requirements

• DC2023-03-0005 (14 March 2023): Templates and guidelines for DU reportorial requirements
• DC2023-04-0006 (12 April 2023): Templates and guidelines for RES reportorial requirements
• As of 30 June 2023: 116 DUs and 18 RES have successfully uploaded reports (Jan–May 2023 billing periods) [PDP 2023-2050, Ch.3 Sec.8.1, p.128, 2025].

DEPDMS (DOE Electric Power Industry Database Management System)

Enhancement of DEPDMS started 5 July 2023 — adding new features for report generation, policy formulation, information gathering, and stakeholder interaction. DEPDMS currently warehouses market data and grid information (from MO and SO) and processes reportorial requirements from GenCos, DUs, RES, and Qualified Third Parties (QTP). The integrated database will generate periodic reports for national government power sector decisions [PDP 2023-2050, Ch.3 Sec.8.2, p.128, 2025].

EVOSS — 7 Active + 4 New Processes

As of December 2022, the EPIMB has 7 active processes under EVOSS:

1. Clearance to Undertake SIS Endorsement to NGCP
2. Certificate of Endorsement to ERC
3. Certificate of Endorsement to Board of Investments
4. Certificate of Endorsement to NCIP for Generation Projects
5. Certificate of Endorsement to NCIP for Transmission Projects
6. Certificate of Endorsement to PNP
7. Application of Clearance for Direct Connection to the Grid

4 new processes added to EVOSS (rolled out H1 2023):

1. Certificate of Endorsement — Point-to-Point Limited Transmission Facilities
2. Letter of Endorsement to DAR for Land Use Conversion
3. SIS Exemption for Power Projects under 20 MW (Luzon) and 5 MW (Visayas and Mindanao)
4. Certificate of Endorsement to ERC for Microgrid Systems Provider

[PDP 2023-2050, Ch.3 Sec.8.3, p.129, 2025]. See Energy Virtual One-Stop Shop (EVOSS) .

Smart Grid Implementation — SDUR Table 54 (December 2022)

Under DC2020-02-0003, all DUs are required to submit Smart Distribution Utility Roadmaps (SDURs). Status as of December 2022 (99 total DUs) [PDP 2023-2050, Table 54, p.130, 2025]:

Key takeaway: 79 of 99 DUs (80%) are at Level 0 or Partially Level 1 for Networks — a significant gap from the full smart grid target by 2040. See Smart and Green Grid Plan (SGGP) .

EPIRA Amendments

DOE has consolidated stakeholder proposals for EPIRA amendment — aiming to: widen energy sources, encourage investment, empower DOE/ERC/mandated agencies, modernize distribution, streamline critical energy infrastructure approvals, and lower electricity prices [PDP 2023-2050, Ch.3 Sec.8.5, p.130, 2025].

Generation Adequacy and Planning Methodology

Future power planning improvements [PDP 2023-2050, Ch.3 Sec.8.6, p.130–131, 2025]:

• LOLE/LOLP assessment: Loss-of-Load Expectation / Loss-of-Load Probability methodology for per-grid generation adequacy, including per-island Visayas sub-grid assessment
• Plant retirement criteria: developing criteria for retiring plants based on performance and operation
• ERC Resolution No. 10, Series of 2020: “Adopting the Interim Reliability Performance Indices and Equivalent Outage Days Per Year of Generating Units” — to be updated as part of planning improvements

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