SM's Sys eye online electricity spot market
Monday, May 08, 2006
(Business World (Philippines) Via Thomson Dialog NewsEdge)
Largest shopping mall developer and operator SM Prime Holdings, Inc. is keen in participating in a venue for trading electricity as a commodity, company President Hans T. Sy said.The Sy-led company is in talks with several groups for the wholesale electricity spot market (WESM) as electricity cost remains high in the country.
"We are finalizing our negotiations but it is a long process. We have to study first the volume. This will mean cheaper power rates and [the group] being assured of power which is a very important factor for us," he said recently.
WESM serves as a clearing house to reflect the economic value of electricity for a particular period, as indicated by the "spot price".It is designed to reflect the real cost of electricity and improve the delivery of power supply by encouraging greater competition in the power industry.
On its Web site, WESM said this market differs from other markets because electricity cannot be stored in large quantities and it is not possible to trace which generator produced the electricity consumed by a particular customer.
It uses the concept of a 'pool' where all electricity output from generators are centrally coordinated. Generators as well as buyers of bulk electricity compete for a share of this pool, to be dispatched and scheduled to meet the electricity demand in real time.
All generating companies, distribution utilities, suppliers, bulk consumers and end users and other similar entities authorized by the Energy Regulatory Commission (ERC) are eligible to become members of the WESM subject to compliance with the membership criteria.
SM Prime owns and operates 23 SM Supermalls across the country. It is looking forward to the opening of the SM Mall of Asia on May 21. With a gross floor area of 386,000 square meters, it is the biggest in the country.Mr. Sy said savings has been substantial as SM Prime replaced equipment to new and more energy efficient among others.
posted by philpower @ 3:58 PM,
