=== dc2018-08-0022-pages-01.ppm === Republic of the Philippines DEPARTMENT OF ENERGY DEPARTMENT CIRCULAR NO. _2C20/$8- O8- 0022 PQ ADOPTING FURTHER AMENDMENTS TO THE WHOLESALE ELECTRICITY SPOT MARKET (WESM) RULES AND MARKET MANUALS ON THE PARTICIPATION OF BATTERY ENERGY STORAGE SYSTEMS AND PUMPED- STORAGE UNITS IN THE WESM WHEREAS, Sections 30 and 37(f) of the Electric Power Industry Reform Act (EPIRA) provides that the DOE, jointly with the electric power industry participants, shall establish the Wholesale Electricity Spot Market (WESM) and formulate the detailed rules governing the operations thereof; WHEREAS, on 28 June 2002, the DOE, with the endorsement of the electric power industry participants, promulgated the WESM Rules through Department Circular No. DC2002-06-003; WHEREAS, any changes, amendments, and modifications to the WESM Rules including its Market Manuals shall be undertaken in accordance with the provisions of Chapter 8 thereof; WHEREAS, on 29 January 2018, the Technical Committee (TC) of the WESM submitted to the Rules Change Committee (RCC) its proposed amendments to the WESM Rules and Market Manuals on the “Participation of Non-Generator Resources (NGRs) and Pumped-Storage Units (PSUs) in the WESM"; WHEREAS, the TC’s proposal aims to provide the framework for the participation of NGRs and PSUs in the WESM with respect to registration, dispatch protocol and modeling in the market network model; WHEREAS, on 02 February 2018, the TC proposal was presented to the RCC during its 137" RCC Meeting, and after due deliberation and discussion, approved for publication in the market information website for comments of the market participants and other interested parties; WHEREAS, on 06 April 2018, the RCC during its 139"" RCC Meeting deliberated on the said proposal giving due course to the comments received from market participants and the DOE; WHEREAS, during its deliberation, the RCC adopted the recommendation to introduce the term “energy storage system/s” as an additional category under WESM Rules Clause 2.3.1.2 — Generation Company for the participation of battery energy storage systems or NGRs, PSUs and other types of facilities which may also fall under this categorization; Energy Center, Rizal Drive, Bonifacio Global City, Taguig City, Metro Manila, Philippines Tels.: (Trunks) 840-1401 to 40; Fax 840-2067; 840-2236; 840-2067 (Domestic); 632-840-2173; 632-840-2236; 632-840-2067 (International) === dc2018-08-0022-pages-02.ppm === WHEREAS, on 04 May 2018, the RCC during its 140" RCC Meeting deliberated further the proposal, and approved for endorsement to the PEM Board through RCC Resolution No. 2018-04; WHEREAS, on 30 May 2018, after due evaluation and deliberation, the PEM Board during its 135" PEM Board Meeting approved for endorsement to the DOE the above stated RCC proposal: WHEREAS, on 06 June 2018, the PEM Board-approved amendments to the WESM Rules and its Market Manuals were submitted to the DOE for final approval, in compliance with Chapter 8 of the WESM Rules; WHEREAS, the DOE considers the said PEM Board-approved proposal consistent with the objectives of the WESM and adopted the same with revisions to remove the term “energy storage system/s” as a collective term for battery energy storage system and pumped-storage unit/s and minor revisions for consistency; NOW THEREFORE, pursuant to its authority under the EPIRA, the DOE hereby adopts, issues, and promulgates the following amendments to the WESM Rules and its Market Manuals: Section 1. Amendments to the WESM Rules. The following provisions in the WESM Rules promulgated by the DOE through Department Circular No. DC2016- 10-0014 are hereby amended: (a) Clause 2.3.1.2 under Generation Company is amended to read as — “2.3.1.2 To register as a WESM Member, a Generation Company shall: (a) Classify each of the generating units which form part of the generating system it owns, operates or controls or from which it otherwise sources electricity as a: XXX XXX XXX (iv) priority dispatch generating unit; (v) battery energy storage system; or (vi) pumped-storage unit. XXX XXX XXX (b) New Clause 2.3.1.9 under Generation Company is added to read as — “2.3.1.9 A facility or a group of facilities connected at a common connection point that is capable of storing electrical energy through chemical reactions from which it is able to charge or discharge electrical energy to the power system and that can be dispatched to any operating level within their entire capacity range but are also constrained by a MW or MWh limit to (1) generate energy, (2) curtail the consumption of energy in the case of demand response, or (3) consume energy shall be classified as battery energy storage system.” DCW$-08- 022, Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals on the Participation of Battery Energy Storage Systems and Pumped-Storage Units in the WESM 2/16 === dc2018-08-0022-pages-03.ppm === (c) New Clause 2.3.1.10 under Generation Company is added to read as — “2.3.1.10 A facility or a group of facilities connected at a common connection point that is capable of storing water from a lower elevation reservoir to a higher elevation reservoir for the purpose of production of electrical power shall be classified as a pumped-storage unit." (d) New Clause 2.3.1.11 under Generation Company is added to read as — “2.3.1.11 A Generation Company shall operate its battery energy storage system and pumped-storage unit in accordance with the scheduling and dispatch procedures described in Chapter 3, within the dispatch conformance standards specified in accordance with Clause 3.8.5 when it is scheduled to operate as Generation.” (e) Clause 3.5.4 and its sub-clauses under Submission of Offers, Bids, and Data are amended to read as — “3.5.4 Load Forecasting All load forecasts at each market trading node in the market network model shall be specified in units of megawatt (MW) and will apply to the end of the relevant dispatch interval unless otherwise stated. XXX XXX XXX 3.5.4.2 Each net /oad forecast shall be prepared in such a way as to represent the net /oad to be met by generation from scheduled generating units, must dispatch generating units, priority dispatch generating units, non-scheduled generating units, battery energy storage systems and pumped-storage units including losses occurring outside the system represented by the market network model, but excluding any scheduled /oad. XXX XXX XXX 3.5.4.7 Each pumped-storage unit shall submit a forecast in respect of each dispatch interval that it will operate as /oad for each trading day of the week in accordance with the timetable. The pumped-storage unit shall be deemed to be operating on generation mode in each dispatch interval without a load forecast.” Clause 3.5.5 and its sub-clauses under Submission of Offers, Bids, and Data (f are amended and renumbered accordingly to read as — ~— “3.5.5 Generation Offers and Data 3.5.5.1 Each Generation Company including Generation Companies with bilateral contracts shall submit a standing market offer for each of its scheduled generating units, battery energy storage systems and pumped- storage units for each dispatch interval in each trading day of the week in DC U8-08-0022 Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals on the Participation of Battery Energy Storage Systems and Pumped-Storage Units in the WESM 3/16 === dc2018-08-0022-pages-04.ppm === accordance with the timetable. The standing market offer shall apply until revised or updated by the Generation Company. 3.5.5.2 Each scheduled generating unit and pumped-storage unit operating on generation mode shall submit a Generation Offer that includes the information specified in Appendix A1.1. 3.5.5.3. Each Generation Company operating a battery energy storage system shall submit an energy storage systems Offer that includes the information specified in Appendix A1.4. 3.5.5.4 Each Generation Company shall submit check data to be used by the Market Operator, in accordance with Clause 3.5.12, to assist in determining the validity of any generation offer which may be submitted by the scheduled generator. XXX XXX XXX 3.5.5.12 The Market Operator shall report to the PEM Board and the DOE the monthly and annual compliance of each must dispatch generating unit to the forecast accuracy standards with respect to its projected outputs." (g) Clause 3.5.7.2 under Generation Company Reserve Offers is amended to read as — “3.5.7.2 When applicable, subject to Clause 3.3.4.2, each scheduled generating unit, battery energy storage system and pumped-storage unit registered as an Ancillary Services Provider in respect of a reserve facility ina particular reserve region shall submit a standing reserve offer for each of its relevant reserve facilities in respect of that reserve region for each dispatch interval for each day of the week in accordance with the timetable. The standing reserve offer shall apply until revised or updated by the scheduled generator registered as an Ancillary Services Provider.” (h) Clause 3.5.9.1 under Revision of Standing Offers/Bids is amended to read as (i) “3.5.9.1 A standing market offer, a standing nomination of /oading levels, a standing projected output, or a standing demand bid for any dispatch interval in any day of the week may be revised by the relevant Generation Company or Customer in accordance with the timetable.” Clause 3.5.9.2 under Revision of Standing Offers/Bids is amended to read as “3.5.9.2 A standing market offer, offer, a standing nomination of loading levels, a standing projected output, or a standing demand bid which is revised under Clause 3.5.9.1: XXX XXX XXX DC £01808 -cce2Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals on the Participation of Battery Energy Storage Systems and Pumped-Storage Units in the WESM 4/16 === dc2018-08-0022-pages-05.ppm === (j) Clause 3.5.11.1 under Revision of Market Offers/Bids, Nomination of Loading Levels, and Projected Outputs is amended to read as — “Each Trading Participant which has submitted standing offers or bids for each of its scheduled generating unit, battery energy storage system and pumped- storage unit may revise any of its market offers or market bids for any dispatch interval in any trading day of the current week-ahead market horizon in accordance with the timetable, and subject to Clause 3.5.11.4 and each revised market offer or market bid submitted shall provide the information set out in Appendix A1.” (k) Clause 3.5.12 and its sub-clauses under Submission of Offers, Bids, and Data (!) are amended to read as — "3.5.12.1 To be valid, market offers, nomination of loading levels, projected outputs or demand bids shall be submitted by the relevant Trading Participant: XXX XXX XXX 3.5.12.2 The Market Operator shall send to each Trading Participant from whom it has received a valid market offer, valid nomination of loading level, valid demand bid or valid projected output, an electronic confirmation of receipt and acceptance of that market offer, nomination of loading /evel, demand bid or projected output in accordance with the timetable prescribed in the relevant Market Manuals. 3.5.12.3 If a Trading Participant does not receive confirmation of receipt under Clause 3.5.12.2, from the Market Operator, the Trading Participant shall contact the Market Operator to determine whether or not the market offer, nomination of loading level, demand bid, or projected output was received. 3.5.12.4 If the market offer, demand bid, or projected output is invalid, the Market Operator shall promptly inform the Trading Participant to resubmit a corrected market offer, demand bid or projected output in accordance with Clause 3.5.11.” Clause 3.6.1.4 under Model Definition is amended to read as — “3.6.1.4 In formulating the market dispatch optimization model, the Market Operator and System Operator shall ensure that the dispatch for each dispatch interval is made subject to: (a) Constraints representing limits on market offers, demand bids, nomination of loading levels, and projected outputs, as specified by Trading Participants in accordance with Clause 3.5, except to the extent that as they may be relaxed in accordance with Clause 3.5.13; ” XXX XXX XXX DC 22-0%0 2 Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals on the Participation of Battery Energy Storage Systems and Pumped-Storage Units in the WESM 5/16 === dc2018-08-0022-pages-06.ppm === (m)Clause 3.6.1.5 under Model Definition is amended to read as — "3.6.1.5 The market dispatch optimization model shall be designed so that, subject to the approximations and adjustments provided for by Clause 3.6.4: (a) It will produce an optimal dispatch given the objective defined by Clause 3.6.1.4, and the constraint structure defined by Clause 3.6.1.4, and specifying dispatch targets for each scheduled generating unit, battery energy storage system, pumped-storage unit, non-scheduled generating unit, must dispatch generating unit, priority dispatch generating unit, scheduled load and reserve facility: XXX XXX XXX (n) Clause 3.6.1.8 under Model Definition is amended to read as — “3.6.1.8 When restricting dispatch targets under Clause 3.6.1.7, the market dispatch optimization model shall consider the following hierarchy when a combination of groups is to be restricted: (a) market offers of scheduled generating units, battery energy storage systems and pumped-storage units operating on generation mode beyond its minimum ” XXX XXX XXX (0) Clause 3.7.4.1 under Preparation of Market Projections is amended to read as “3.7.4.1 Each market projection shall take into account: XXX XXX XXX (d) The market offer information submitted by each relevant Trading Participant in accordance with clause 3.5.5; XXX XXX XXX” (p) Clause 3.8.1 under Scheduling and Dispatch Implementation is amended to read as — “3.8.1 Responsibilities of the Market Operator XXX XXX XXX (e) Use the market dispatch optimization model to determine the target loading level in MW for each scheduled generating unit, battery energy storage system, pumped-storage unit, must dispatch generating unit, priority dispatch generating unit, non-scheduled generating unit, scheduled load and reserve facility for the end of that dispatch interval DC2git-06-0022- Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals on the Participation of Battery Energy Storage Systems and Pumped-Storage Units in the WESM 6/16 === dc2018-08-0022-pages-07.ppm === using the latest data from the System Operator and Trading Participants; XXX XXX XXX (g) Send to all Trading Participants a dispatch schedule that contains target loading levels in respect of their scheduled generating unit, battery energy storage system, pumped-storage unit, must dispatch generating unit, priority dispatch generating unit and non-scheduled generating units calculated under Clause 3.8.1(e) for each dispatch interval prior to the commencement of that dispatch interval in accordance with the relevant Market Manuals; and XXX XXX XXX (q) Clause 3.8.3.3 under System Operator Implementation of Real-Time Dispatch is amended to read as — “3.8.3.3 All scheduled generating units, battery energy storage systems, pumped-storage units and priority dispatch generating units shall follow all instructions from the System Operator, in accordance with the Grid Code, the WESM Rules and pertinent Market Manuals.” (r) Clause 3.11.1.3 under Market Information is amended to read as — “3.11.1.3 Each trading day, in accordance with the timetable, the Market Operator shall publish: (a) The dispatch schedule for each scheduled generating unit, battery energy storage system, pumped-storage unit, must dispatch generating unit, priority dispatch generating unit, non-scheduled generating unit and scheduled load in each dispatch interval in the settlement intervals for the previous trading day; and XXX XXX XXX (s) New term, “Battery Energy Storage System," is hereby added under Glossary in Chapter 11 — “Battery Energy Storage System. A system with all related equipment essential to its functioning as a single entity which is capable of storing electrical energy through chemical reactions from which it is able to charge or discharge electrical energy to the power system.” (t) New term, “Battery Energy Storage System Offer,” is hereby added under Glossary in Chapter 11 - “Battery Energy Storage System Offer. A market offer either to supply or purchase electricity, submitted or revised by a Generation Company in accordance with Clauses 3.5.5, 3.5.9, 3.5.10 or 3.5.11.” DCwit-08#22 Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals on the Participation of Battery Energy Storage Systems and Pumped-Storage Units in the WESM 7/16 === dc2018-08-0022-pages-08.ppm === (u) New term, “Equipment,” is hereby added under Glossary in Chapter 11 — “Equipment. All apparatus, machines, conductors, etc., used as part of, or in connection with, an electrical installation.” (v) New term, “Pumped-Storage Unit,” is hereby added under Glossary in Chapter 11 — “Pumped-Storage Unit. A facility or group of facilities that act as load while using energy to pump water to higher elevation reservoirs, and then act like generators by producing electric energy when water is released back to lower reservoir.” (w)The definitions of the following terms under Glossary in Chapter 11 are amended to read as — “Generating System. A system comprising one or more generating units capable of generation with its own metering facility. Generating Unit. A conversion apparatus including auxiliaries and associated equipment functioning as a single unit, which is used to produce electric energy from some other form of energy. Generation. The process of converting one form of energy to electrical energy. Generation Offer. A market offer to supply electricity, submitted or revised by a Generation Company in accordance with Clauses 3.5.5, 3.5.9, 3.5.10 or 3.5.11. Market Offer. A generation offer, a battery energy storage system offer or a reserve offer for a particular dispatch interval of a particular trading day in the current market horizon, whether formed from a standing offer in accordance with Clause 3.5.10 or revised by the relevant Trading Participant, in accordance with Clause 3.5.11.” (x) Section A1.1 under Appendix A1 (Information to be Supplied with Offers to Supply and to Buy Electricity) is amended to read as — “A1.1 Generation Offer Generation offers: XXX XXX XXX (c) Shall have monotonically increasing prices and quantity, starting from zero generation; ” XXX XXX XXX DC2oie-08-0022 Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals on the Participation of Battery Energy Storage Systems and Pumped-Storage Units in the WESM 8/16 === dc2018-08-0022-pages-09.ppm === (y) New Section A1.4 under Appendix A1 (Information to be Supplied with Offers to Supply and to Buy Electricity) is added to read as — "A1.4 Battery Energy Storage System Offer Battery Energy Storage System Offer: (a) Shall include the location of the connection point and relevant market network node; (b) Shall include the pricing zone of the connection point, (c) May include up to ten (10) energy offer blocks per (aggregate) unit. The maximum combined capacity of generation and reserve offers must not be less than the maximum available capacity of the generator. (d) Shall be for a minimum block size of 1 MW; (e) Shall have monotonically increasing prices and quantity (f) May start from a negative quantity to represent its projected maximum consumption; (g) May include negative prices (h) May include the projected state-of-charge at the start of the relevant dispatch interval” Section 2. Amendments to the WESM Market Manual on Dispatch Protocol. The following provisions in the Dispatch Protocol! Manual are hereby amended: (a) Section 6.9 and its sub-sections under Bids, Offers and Data Submission and Processing are amended and renumbered accordingly to read as — “6.9 Format and Contents of Submissions XXX XXX XXX 6.9.3 Trading Participants shall provide the following information when submitting battery energy storage system offers: a) May include up to ten (10) energy offer blocks per (aggregate) unit. The maximum combined capacity of generation and reserve offers must not be less than the maximum available capacity of the generator; b) Shall be for a minimum block size of one (1) MW; c) Shall have monotonically increasing prices and quantity; d) May start from a negative quantity to represent its projected maximum consumption e) May include negative prices; and f) Shall include up to three (3) segments of ramp rate profiles for different quantity break-points. The ramp up/down rates shall be within the minimum and maximum registered ramp rates. 6.9.4 Trading Participants shall provide the following information when submitting reserve offers: XXX XXX XXX DC20\2-08-0023 Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals on the Participation of Battery Energy Storage Systems and Pumped-Storage Units in the WESM 9/16 === dc2018-08-0022-pages-10.ppm === 6.9.7 The Market Operator shall publish a document that will provide operational details on the submission of se/f-scheduled nominations, bids, and offers in the market information website.” (b) Section 10.1.2 under Background is amended to read as — “10.1.2 The WMOT is generated by stacking in an unconstrained manner of scheduled and unscheduled capacities, excluding negative quantities, through the market offers submitted for the real-time dispatch runs. Energy offer blocks submitted by generator Trading Participants for a particular dispatch interval are arranged from lowest to the highest priced offer block, without considering any constraints. The WMOT stacks energy offers into two, namely, the energy offers that were scheduled (or “Offers Dispatched”) and energy offers that were not scheduled (or “Offers Not Dispatched”).” (c) Section 10.4.1 under Preparation of the WMOT is amended to read as — “10.4.1 The WMOT shall be prepared using the offers, excluding negative quantities, and the real-time dispatch schedule of each generating system for which offers were submitted for the relevant dispatch interval. The specific information that will be used is as follows: XXX XXX XXX (d) All the term “generation offer’ in this Market Manual is hereby replaced with the term “market offer.” Section 3. Amendments to the WESM Market Manual on Market Network Model Development and Maintenance — Criteria and Procedures. The following provisions in the Market Network Mode! Development and Maintenance Manual are hereby amended: (a) Section 4.1.3 under Definition is amended to read as — “4.1.3 The components of the MNM interact with one another in accordance with the dispatch schedule of generating units, battery energy storage systems, pumped-storage units, customer demand and the physical laws that govern the operation of the network components. These interactions are complex by nature but should be balanced to maintain the reliable and secure operation of the power system by the System Operator, as well as for the generation of fair and economic market dispatch schedules and nodal energy price.” (b) Section 4.4 and its sub-sections under Market Network Model Development are amended and renumbered accordingly to read as — “4.4 MNM COMPONENTS AND MODELING XXX XXX XXX DC 2018-08. ©22 Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals on the Participation of Battery Energy Storage Systems and Pumped-Storage Units in the WESM 10/16 === dc2018-08-0022-pages-11.ppm === 4.4.1 Market Trading Nodes (MTN) These are nodes in the load flow model designated as the reckoning node for settlement of energy and reserves of Trading Participants. MTN shall be modeled as the trading point of a generating unit, battery energy storage systems, pumped-storage unit or a Load corresponding to its connection point. Where the MTN and the metering point are of different location, site-specific loss adjustment (SSLA) provided in the WESM Metering Market Manual shall apply. Further details on MTN can be viewed in Section 6 of this Market Manual. XXX XXX XXX 4.4.4 Battery Energy Storage System representation This is the mathematical model of a battery energy storage system with its dual capability of injecting or withdrawing power through the network. 4.4.5 Pumped-Storage Unit representation This is the mathematical model of a pumped-storage unit with its dual capability of injecting or withdrawing power through the network. 4.4.6 Transmission and Sub-transmission lines XXX XXX XXX 4.4.7 Transshipment Node XXX XXX XXX 4.4.8 Power Transformer XXX XXX XXX 4.4.9 Shunt and Series Devices XXX XXX XXX 4.4.10 Power Circuit Breakers and Disconnect Switches XXX XXX XXX 4.4.11 Scheduling Points XXX XXX XXX” (c) Section 6.3 and its sub-sections under Market Trading Node are amended to read as — DC wit -0? 023 Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals on the Participation of Battery Energy Storage Systems and Pumped-Storage Units in the WESM 11/16 === dc2018-08-0022-pages-12.ppm === “6.3 Classification of Market Trading Nodes 6.3.1 MTN’s can be classified as: (a) Generator nodes — nodes that represent a registered generating unit or generating system directly connected to a network operated by the System Operator. It is a node where power is injected into the transmission network. (b) Customer nodes — nodes that represent where power is withdrawn by Trading Participants from the grid. c) Battery Energy Storage System nodes - nodes that represent a registered battery energy storage system directly connected to a network operated by the System Operator. It is a node where power is injected or withdrawn through the transmission network. d) Pumped-Storage Unit nodes - nodes that represent a registered pumpea-storage unit directly connected to a network operated by the System Operator. It is a node where power is injected or withdrawn through the transmission network. 6.3.2 Where available remote telemetering facilities are situated at a location net of the station service, the Trading Participant shall have a generator and a customer MTN registered in the WESM to accurately reflect the direction of power flow.” (d) New Section 6.7 and its sub-sections under Market Trading Node are added to read as — “6.7 Battery Energy Storage System MTN 6.7.1 A MTN is considered a battery energy storage system node if energy is injected or withdrawn through that node and the direction of the power flow is from the apparatus or equipment operated by the Trading Participant to the network operated by the Network Service Providers, including the System Operator. 6.7.2 During the submission of offers to supply or consume electricity, the participant battery energy storage system shall specify the location of the connection point and the relevant market network node. 6.7.3 The information that should be submitted by the generators in their energy supply and reserve offers are enumerated in Appendix A1.4 of the WESM Rules." (e) New Section 6.8 and its sub-sections under Market Trading Node are added to read as — “6.8 Pumped-Storage Unit MTN 6.8.1 A MTN is considered a pumped-storage unit node if the facility is a pumped-storage plant where energy can either be injected or withdrawn DC 4p)8-08 0022 Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals on the Participation of Battery Energy Storage Systems and Pumped-Storage Units in the WESM 12/16 === dc2018-08-0022-pages-13.ppm === — through that node and the direction of the power flow is from the apparatus or equipment operated by the Trading Participant to the network operated by the Network Service Providers, including the System Operator. 6.8.2 During the submission of offers during generation mode, the participant pumped-storage unit shall specify the location of the connection point and the relevant market network node. 6.8.3 The information that should be submitted by the generators in their energy supply and reserve offers are enumerated in Appendix A1.1 of the WESM Rules.” Original Section 6.7 and its sub-sections under Market Trading Node are renumbered to read as — “6.9 Procedure for MTN Identification XXX XXX XXX Section 4. Amendments to the WESM Market Manual on Registration, Suspension and De-registration Criteria and Procedures. The following provisions in the Registration, Suspension and De-registration Criteria and Procedures Manual are hereby amended: (a) Section 1.4.1 under General Guidelines is amended to read as — “1.4.1 All generation companies, distribution utilities, suppliers, bulk consumers/end-users and other similar entities authorized by the Energy Regulatory Commission (the “ERC’) are eligible to become members of the WESM subject to compliance with set membership criteria. Pursuant to Republic Act No. 9136, the ERC is the agency mandated to authorize other persons or entities that can be eligible to become members of the WESM.” (b) Section 2.5.1.1 under Categories and Qualifications is amended to read as — “2.5.1.1 Generation Company a) The persons or entities that may register as a Generation Company are those that own, control or operate or otherwise source electricity from a generating unit/s connected to the transmission system or distribution system. b) Notwithstanding any definition to the contrary, the persons or entities that may qualify to register as Generation Company are those — ¢ Generation companies that own, operate or control a generating unit connected to the transmission system and which have been authorized by the ERC to operate such facilities. DCQo8-02-0022Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals on the Participation of Battery Energy Storage Systems and Pumped-Storage Units in the WESM 13/16 === dc2018-08-0022-pages-14.ppm === e Generation companies that own or operate embedded generating units that are indirectly connected to the grid through the lines of Distribution Utilities or industrial generation facilities that are synchronized with the Grid, and which have been authorized by the ERC to operate such facilities. e /PP Administrators appointed by the Power Sector Assets and Liabilities Management Corporation in respect to the transaction of the energy output of a generating unit covered by their appointment as IPPA. The IPPA and/or the Generation Company whose energy output are being administered by such /PPA must have the requisite authorization by the ERC. (c) Section 2.5.4.1 under Other Considerations is amended to read as — “2.5.4.1 Generating Unit Classification a) An Applicant wishing to register as a Generation Company shall, upon application, classify each of the generating unit or group of generating units which form part of the generating system it owns or operates or controls or from which it otherwise sources electricity as either — XXX XXX XXX « Battery Energy Storage System are generating units that are connected at a common connection point that are capable of storing electrical energy through chemical reactions from which it is able to charge or discharge electrical energy to the power system and that can be dispatched to any operating level within their entire capacity range but are also constrained by a MW or MWh limit to (1) generate Energy, (2) curtail the consumption of Energy in the case of demand response, or (3) consume Energy. » Pumped-storage units are generating units connected at a common connection point that is capable of storing water from a lower elevation reservoir to a higher elevation reservoir for the purpose of production of electrical power shall be classified as a pumped- storage unit However, the Generation Company may also elect to have such unit/s classified as scheduled generating unit/s or non-scheduled generating unit/s subject to this Section. XXX XXX XXX c) The Market Operator shall approve the classification of a generating unit/s as either a non-scheduled generating unit or a must dispatch generating unit or a priority dispatch generating unit or an energy storage system, subject to prevailing relevant rules, regulations and issuances. An Applicant may appeal the decision of the Market Operator to the PEM Board.” DC4a8 -69-22 Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals on the Participation of Battery Energy Storage Systems and Pumped-Storage Units in the WESM 14/16 === dc2018-08-0022-pages-15.ppm === (d) Section 2.5.4.3 under Other Considerations is amended to read as — “2.5.4.3 Dispatch Conformance Standards A Generation Company shall operate scheduled generating units, priority dispatch generating units, battery energy storage systems and pumped- storage units in accordance with the scheduling and dispatch procedures described in Chapter 3, and in accordance with the dispatch conformance Standards specified in accordance with Clause 3.8.5.” (e) Section 2.5.4.4 under Other Considerations is amended to read as — (f) “2.5.4.4 Generation Registered Capacities A Generation Company shall include in its application the maximum stable load (Pmax), the minimum stable load (Pmin), the ramp up rate, and the ramp down rate of each generating unit or aggregated generating units that are included in its application. The information provided to the Market Operator must be consistent with the information contained in the Certificate of Compliance issued by the ERC as well as submissions made to the ERC in relation to the issuance of its Certificate of Compliance. \f the generating unit is a battery energy storage system, the Generation Company shall include the generating unit's energy storage efficiency and maximum storage capacity in its Application. If the generating unit is a pumped-storage unit, the Generation Company shall include the generating unit's maximum pump load.” Section 3.3.3.1 under Representation in the Market Network Model is amended to read as — "3.3.3.1 Changes in the manner of representation of any generating unit or customer facility in the Market Network Model may be initiated by the Trading Participant transacting such facilities in the WESM.” (g) The definitions of the following terms under Glossary are amended to read as “Maximum Stable Load or Pmax. The maximum demand in MW that a generating unit or generating system or module in the case of a combined cycle power plant, can reliably sustain for an indefinite period of time, based on the generator capability tests. Also the registered maximum capacity. Minimum Stable Load or Pmin. The minimum demand in MW that a generating unit, or a generating system or module in the case of combined cycle power plant, can reliably sustain for an indefinite period of time, based on generator capability tests. Also the registered minimum capacity. Registered Capacity. The prevailing Maximum Stable Load or Pmax and the Minimum Stable Load or Pmin of a generating unit or generating system as registered with the Market Operator or subsequent changes confirmed and DC 4p $-0£-on3a Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals on the Participation of Battery Energy Storage Systems and Pumped-Storage Units in the WESM 15/16 === dc2018-08-0022-pages-16.ppm === implemented by the Market Operator. The Pmax shall be the registered maximum capacity while the Pmin shall be the minimum registered capacity.” Section 5. Separability Clause. If for any reason, any section or provision of this Circular is declared unconstitutional or invalid, such parts not affected shall remain valid and subsisting. Section 6. Effectivity. This Circular shall take effect fifteen (15) days after its publication in two (2) newspapers of general circulation and certified true copies thereof shall be filed with the University of the Philippines Law Center. Signed at DOE Building, Energy Center, Rizal Drive, Fort Bonifacio Global City, Taguig City, this day of August 2018. e oot A” ecretary UU AUG 06 2018 meas, IN REPLYING PLS, CITE: DOE-AGC-18010479 MUON QIU) NA 1 DC 4pi2-0£.022Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals on the Participation of Battery Energy Storage Systems and Pumped-Storage Units in the WESM 16/16