ADOPTION OF DEMAND AGGREGATION &
SUPPLY AUCTIONING POLICY
IN THE ELECTRIC POWER INDUSTRY
March 2015
Objectives of DASAP
• To serve as platform to allow Distribution Utilities a yearly
venue to procure un-contracted demand requirements from all
available and future capacities from generation companies;
• To serve as a transparent and competitive bidding/selection
process among DUs/ECs in securing Power Supply Agreement
at a least cost manner;
• Hastens regulatory approval using an Auction Power Supply
Agreement Template (developed by DOE in coordination with
the ERC); and
• Encourage private sector investments and broaden the
ownership base in Generation Sector; and provide impetus for
the fruition of indicative projects.
Auction Design/Structure
Aggregated and
Individual Demand
Requirement (MW)
Generator 1
Generator 2
Electric Cooperatives
Generator 3
Aggregated and
Individual Demand
Requirement (MW)
Generator 4
Generator N
Salient Features of Proposed DASAP
• Annual Supply Auctioning to cover at least the baseload
requirement of the Distribution Utilities (DUs)
• An Auction PSA Template
shall be developed by DOE in
coordination with ERC
•
Auction Participants
• Supply auction design will
be pay-as-bid; there will
be three (3) rounds of
simultaneous bidding
Mandatory - Distribution Utilities (DUs)
Voluntary
• Generation Companies
• Retail Electricity Suppliers
• Directly Connected Customers
• Contestable Customers
• DUs that are
contiguously
located shall be the
target aggregation
of demand
• Existing, Under-Construction, and New Generating
Plants: Can offer one (1) up to twenty five (25) year
supply contracts
•
An Auction Committee shall be created
4 months
prior Auction
Overview of Supply Auction Process
Data Submission/
Posting of Bid Bonds
Posting of Data
Auction Proper
Notice-Of-Award
PSA Signing
ERC Approval
DUs
• Authorized Representative, duly approved by its Board or if
aggregated notarized certification likewise duly signed by
member utilities;
• Name of Customer; (if aggregated include notarized certification);
Previous year’s hourly load duration curve (if aggregated include
data for each member utility);
• Projected coincident peak and minimum demand requirements
for the next 10 years(if aggregated include data for each member
utility);
• Contracted capacities and corresponding suppliers; (if
aggregated include data for each member utility);
• Provide Key Performance Indices as determined by NEA (if
applicable); and
• Bid security (PhP/kW to be procured from auction)
4 months
prior Auction
Data Submission/
Posting of Bid Bonds
Overview of Process
Existing and Under-Construction Generating
Plants
• Name of Company;
Posting of Data
• Authorized Representative;
• Name of Power Plant;
• Power Plant Location;
Auction Proper
• Date of Commercial Operation;
• Type of Operation: (baseload, baseload and
intermediate, or peaking);
Notice-Of-Award
• Last year’s hourly capacity curve;
• Pmin(MW)
PSA Signing
• Pmax(MW: net of station use)
• Available capacity auction (MW);
• Duration of Bid: (maximum of 3 years); and
ERC Approval
• Bid security(PhP/kW to be bid)
4 months
prior Auction
Overview of Process
Data Submission/
Posting of Bid Bonds
Posting of Data
Auction Proper
Notice-Of-Award
PSA Signing
ERC Approval
New generating plants
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Name of Company;
Authorized Representative;
Name of Power Plant;
Location of Power Plant;
Date of Commercial Operation;
Type of Operation: (baseload and/or baseload and
intermediate and/or peaking);
Rated Capacity(MW);
Dependable Capacity (MW);
Available capacity for auction (MW and Energy):
Duration of bid (start(month/year) and end year(month/year));
Securities and Exchange Commission Registration – SEC
certified;
By-Laws and Articles of Incorporation – SEC Certified;
Business Permit;
Controlling Stockholders and Percentage of their Holdings;
Organizational Chart of Company
Work program (to include detailed program from start until
target date of commercial operation);
Company Profile; and
Bid security(PhP/kW to be bid)
4 months
prior Auction
Data Submission/
Posting of Bid Bonds
Posting of Data
Auction Proper
Notice-Of-Award
PSA Signing
ERC Approval
Overview of Process
Directly Connected Customer and Contestable Customer
•
•
•
•
•
•
•
•
Name of Customer
Notarized Authorized Representative
Previous year’s hourly load duration curve
Projected monthly, indicate minimum and peak, demand
requirement (MW) and its corresponding energy (MWH) for
the next 3 years
Projected demand requirements for the next 10 years
Contracted capacities and corresponding supplier(s)
ERC Certificate of Contestability and
Bid security(PhP/kW to be bid)
Retail Electricity Supplier
• Name of Customer
• Notarized Authorized Representative
• Demand Offer (MW)
• Duration of offer (start(month/year) and end
year(month/year)) and
• Generation Company Affiliation
4 months
prior Auction
Data Submission/
Posting of Bid Bonds
OVERVIEW OF PROCESS
Letter Seeking Exemption
Distribution Utilities
Posting of Data
Auction Proper
• ERC Approved Power Supply Agreements;
• Power Supply Agreements pending approval by the ERC;
and
• Duly notarized certification of Power Supply Procurement
Plan.
Generation Companies
• Un-contracted Plant Capacity Management Plan;
• ERC Approved Power Supply Agreements;
Notice-Of-Award
PSA Signing
ERC Approval
Overview of Process
Posting of Data
Generation Company Offers
Delivery Date
JANUARY FEBRUARY MARCH
CAPACITY CAPACITY CAPACITY
(in MW)
(in MW)
(in MW)
87.00
87.00
0.00
43.00
43.00
0.00
EXISTING : BASE LOAD/INTERMEDIATE
CEDC
TOLEDO
TOTAL
130.00
130.00
0.00
APRIL
CAPACITY
(in MW)
87.00
43.00
MAY
CAPACITY
(in MW)
87.00
43.00
130.00
130.00
2015
JUNE
JULY
CAPACITY CAPACITY
(in MW)
(in MW)
87.00
87.00
43.00
43.00
130.00
Delivery Date
New Power Plants: BASE LOAD/INTERMEDIATE
300 MW Therma Visayas Energy Project
1 X 20 MW FDC Danao CFB Coal Power Plant
130.00
AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
CAPACITY CAPACITY CAPACITY CAPACITY CAPACITY
(in MW)
(in MW)
(in MW)
(in MW)
(in MW)
87.00
87.00
87.00
87.00
87.00
43.00
43.00
43.00
43.00
43.00
130.00
130.00
130.00
130.00
130.00
2017
JANUARY FEBRUARY MARCH
CAPACITY CAPACITY CAPACITY
(in MW)
(in MW)
(in MW)
APRIL
CAPACITY
(in MW)
MAY
CAPACITY
(in MW)
JUNE
CAPACITY
(in MW)
JULY
CAPACITY
(in MW)
AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
CAPACITY CAPACITY CAPACITY CAPACITY CAPACITY
(in MW)
(in MW)
(in MW)
(in MW)
(in MW)
20.00
20.00
20.00
20.00
20.00
0.00
300.00
20.00
300.00
20.00
300.00
20.00
300.00
20.00
300.00
20.00
300.00
20.00
20.00
20.00
20.00
20.00
20.00
0.00
320.00
320.00
320.00
320.00
320.00
320.00
JUNE
CAPACITY
(in MW)
140
JULY
CAPACITY
(in MW)
129
TOTAL
Distribution Utility
Region 6 Aggregated Demand
Region 7 Aggregated Demand
36.86
42.39
55.38
55.58
55.00
49.45
51.35
58.58
56.42
56.01
49.91
Region 8 Aggregated Demand
105
93
100
108
114
113
107
106
110
110
105
99
255.80
230.38
268.07
294.07
315.69
302.62
287.32
291.42
306.24
300.44
295.81
248.86
Capacity Requirement
TOTAL
FEBRUARY MARCH
CAPACITY CAPACITY
(in MW)
(in MW)
95
112
2015
APRIL
MAY
CAPACITY CAPACITY
(in MW)
(in MW)
130
147
JANUARY
DEMAND
(in MW)
114
AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
CAPACITY CAPACITY CAPACITY CAPACITY CAPACITY
(in MW)
(in MW)
(in MW)
(in MW)
(in MW)
127
139
135
141
150
2 months
prior Auction
Data Submission/
Posting of Bid Bonds
Posting of Data
Auction Proper
Notice-Of-Award
PSA Signing
ERC Approval
OVERVIEW OF PROCESS
Auction Participants Data Posting
• Individual and consolidated distribution utilities and other
customers’ capacity requirements and of generators
capacity to be offered and bid.
• A node-to-node line rental matrix
Overview of Process
Posting of Data
300
271
Region 1 un-contracted demand (MW)
250
191
200
150
231
125
136
149
165
173
2018
2019
209
100
50
0
2015
2016
2017
2020
2021
2022
2023
Overview of Process
Posting of Data
8,000
Capacity
Requirem
ent
Luzon Capacity Requirement vis-à-vis
Generator Bids
7,000
6,000
5,000
Generator
MW Bid
Exisitng
Generatin
g Plants
4,000
3,000
2,000
1,000
Oct 2020
Jul 2020
Apr 2020
Jan 2020
Oct 2019
Jul 2019
Apr 2019
Jan 2019
Oct 2018
Jul 2018
Apr 2018
Jan 2018
Oct 2017
Jul 2017
Apr 2017
Jan 2017
Oct 2016
Jul 2016
Apr 2016
Jan 2016
Oct 2015
Jul 2015
Apr 2015
Jan 2015
0
Generator
MW Bid
UnderConstructi
on and
New
Generatin
g Plants
1,600
Jan 2015
Mar 2015
May 2015
Jul 2015
Sep 2015
Nov 2015
Jan 2016
Mar 2016
May 2016
Jul 2016
Sep 2016
Nov 2016
Jan 2017
Mar 2017
May 2017
Jul 2017
Sep 2017
Nov 2017
Jan 2018
Mar 2018
May 2018
Jul 2018
Sep 2018
Nov 2018
Jan 2019
Mar 2019
May 2019
Jul 2019
Sep 2019
Nov 2019
Jan 2020
Mar 2020
May 2020
Jul 2020
Sep 2020
Nov 2020
Overview of Process
Posting of Data
Visayas Capacity Requirement vis-à-vis
Generator Bids
1,400
Capacity
Requirement
1,200
1,000
800
600
Generator MW Bid
Exisitng Generating
Plants
400
200
0
Generator MW Bid
Under-Construction
and New
Generating Plants
Overview of Process
Posting of Data
1,200
1,000
Mindanao Capacity Requirement vis-àvis Generator Bids
Capacity
Requirement
800
Generator MW
Bid Exisitng
Generating
Plants
600
400
200
Jan 2015
Apr 2015
Jul 2015
Oct 2015
Jan 2016
Apr 2016
Jul 2016
Oct 2016
Jan 2017
Apr 2017
Jul 2017
Oct 2017
Jan 2018
Apr 2018
Jul 2018
Oct 2018
Jan 2019
Apr 2019
Jul 2019
Oct 2019
Jan 2020
Apr 2020
Jul 2020
Oct 2020
0
Generator MW
Bid UnderConstruction
and New
Generating
Plants
OVERVIEW OF PROCESS
Adoption of
Policy
Data Submission/
Posting of Bid Bonds
Posting of Data
Auction Proper
Supply Auction
The Supply auction will be in the form of a pay-as-bid auction
for demand requirement of distribution utilities designed to
have three (3) round of simultaneous bidding aimed to give
participants a fair chance of having their excess un-contracted
generation capacities and demand requirements covered by a
power supply agreement.
The whole auction process shall be concluded in a day where
un-contracted generation capacities of existing generating
plants shall be offered as short to long-term contracts.
Generation companies shall be bid at cost of generation at
delivery point of distribution utilities based on.
Notice-Of-Award
PSA Signing
ERC Approval
AUCTION DESIGN/STRUCTURE
Auction
Aggregated
DUs1
Generator 1
Generator
2
Generator 3
Auction
Facilitator
SealedBids
(PhP/MW
@
delivery
point)
Simultaneous
Offers of
UnContracted
Capacity
Requirement
(MW)
Aggregated
DUs 2
Aggregated
DUs3
Aggregated
DU 4
Generator 4
Generator N
Notice of
Award
PSA Approval
Aggregated
DU 5
AUCTION DESIGN/STRUCTURE
Auction Board/Screen
Auction
Facilitator
Dus 1:
XXXX MW
DUs 2:
XXXX MW
DUs 3:
XXXX MW
DUs 4:
XXXX MW
DUs 5:
XXXX MW
Aggregated DUs 1 Aggregated Dus 2
DU 1
DU 2
DU 3
Representative
Representative Representative Representative Representative
PhP/MW
PhP/MW
PhP/MW
PhP/MW
PhP/MW
DUs N:
XXXX MW
Aggregated Dus 3
Representative
PhP/MW
GenCOs to bid
PhP/MW at delivery point
Generator 1 Generator 2 Generator 3 Generator 4 Generator 5 Generator 6 Generator 7 Generator 8
AUCTION DESIGN/STRUCTURE
Round 1
Round 2
DU1:
15MW
G1:30MW
PhP/MW
A2:
10MW
G3:10MWPhP/MW
G3:10MWPhP/MW
DU2:
20MW
G2:15MW
PhP/MW
A1:
10MW
G3:10MW
PhP/MW
G4:10MW
PhP/MW
A3:
10MW
G4:10MW
PhP/MW
A3:
10MW
G4:10MWPhP/MW
A4
10MW
G5:10MWPhP/MW
A2:
10MW
A3:
10MW
G5:10MW
PhP/MW
A4:
10MW
G6:10MW
PhP/MW
Round 3
G6:10MWPhP/MW
Round 1
Round 2
Round 3
DU Offer
75 MW
30MW
10MW
Gen Bid
85MW
40MW
20MW
The Auction shall only
have three (3) bidding
round. Remaining
available capacities of
generating plants and
capacity requirement
of DUs and other
customer, surplus
from the previous
round, will be bid in
Round 2 and 3.
20
DECISION FLOWCHART
START
Display of Capacities for Auction
*Proceed then offer remaining capacity in the next
round. In this case the generation company will be
allowed to modify his bid, provided that this is done
within the prescribed time allotted for this step. The
modification shall be submitted in a sealed envelope
duly identified as a modification of the original bid and
stamped received by the distribution utility
representative.
Capacity
Requirement of
Customers (MW)
Generation
Capacity (MW)
Customers: Capacity
Requirement
Generators:
Submit Sealed-Bid
<= 30 mins
YES
Auction Committee and Customer:
Review of Bids
<=1 Hour
Notice-ofAward
Auction
Facilitator:
declares initial
winning bidders
and
corresponding
quantities
Auction
Committee:
Generators:
Resubmit revised
bid
declares final
winning bidders
and
corresponding
quantities
Winning
Bidder(s)
YES
YES
Collate Contracted Capacities
Vis-à-vis Capacity Requirements
<= 30 mins
NO
*In case bid is not
fully acquired
END
AUCTION DESIGN/STRUCTURE
Aggregated DU Demand:
35MW
G4: 10 MW
G3: 10 MW
G2: 10 MW
G1: 10 MW
G4
10 MW @
₱6.2 / kW
G3
10 MW @
₱6.3 / kW
G2
10 MW @
₱3 / kW
G1
10 MW@
₱3 / kW
Scenario1: G4 decides not to proceed with bid as 10MW
offered capacity will not wholly be taken by Customer 1 and
will bid all of its 10MW capacity in the next round. On the
other hand, customer will offer its remaining 5MW
requirement in the next round
OR
G4: 5 MW
G3: 10 MW
G4
5 MW @
₱6.2 / kW
G3
10 MW @
₱6.3 / kW
G2: 10 MW
G2
10 MW @
₱3 / kW
G1: 10 MW
G1
10 MW@
₱ 3/ kW
Scenario2: G4 decides to proceed its 5MW required by
Customer 1. G4’s remaining 5MW capacity will be offered to
other DUs or customer requirement in the next round
since Customer 1 has no more capacity requirement after
this round.
OVERVIEW OF PROCESS
Adoption of
Policy
Data Submission/
Posting of Bid Bonds
Posting of Data
Auction Proper
Notice-Of-Award
PSA Signing
ERC Approval
Notice-Of-Award
DOE to issue a non-transferable Notice-of Award to the
winning “buyer” and “seller” which is a requisite for regulatory
approval of respective individual power supply agreements.
Notice-of Award shall contain the following but not limited to:
•
•
•
•
Name of DU(s) and Generation Company(s);
MW awarded;
Delivery Date; and
Duration of Bid and PhP/MW;
OVERVIEW OF PROCESS
Adoption of
Policy
Data Submission/
Posting of Bid Bonds
Posting of Data
Auction Proper
Notice-Of-Award
PSA Signing
ERC Approval
PSA Signing and ERC Approval
PSA shall be between a generator and a distribution utility
Auction Notice-Of-Award shall be required by the ERC as a
requisite for the Approval of the PSA applied.
An Auction PSA Template developed by DOE in coordination
with ERC shall be adopted and used in the Auction.
Upon the execution of the PSA, the parties shall file with the
ERC , within thirty (30) days therefrom, a joint application for
the approval of the said PSA.
Aggregation (n): comes from the
Latin ad, meaning to, and gregare,
meaning herd. So the word was
first used to literally mean to herd
or to flock. Now it just refers to
anything herded together in a
collection or assemblage.