My copy of the Primer edited by Andy Bruce and Gary Vasey at UtiliPoint arrived Monday. It’s entitled “Trends in Energy Trading, Transaction and Risk Management Software” and published just three weeks ago.
Energy trading and risk management (ETRM) is a burgeoning practice area worldwide and it’ll be coming into its own in the Philippines quickly over the next year as WESM ramps up for generators, distribution utilities (DUs), and wholesale aggregators with another boost as retail supply is introduced.
Andy started the ETRM Community Blog probably not too long before this site started and he’s maintained a link to us in the blogroll since early 2006.
A U.K.-based company with programming support in Delhi, cKlear, has, as I understand it, installed its Contango Suite, or at least some aspects of it, at PSALM. [Disclosure: cKlear and I have had discussions about possible business collaborations].
I am not fully aware of other vendors operating or wanting to operate here in the Philippines, but I’m sure it’s an area that is developing.
With my first-hand experience in California, I can confidently say that energy trading will have big impacts on how DUs and generators operate in the Philippines. The wholesale market and new allied businesses will develop in many ways that aren’t even mentioned in the restructuring law, EPIRA, as new physical products and derivative products are developed.
Even the regulator will eventually get involved in all likelihood (CPUC had to in California) to provide cost recovery for hedging activities taken on behalf of customers. It’s a tricky area for disclosure issues that can impact the competitiveness of market dealings.
I look forward to discussing much more about this subject and monitoring its development in the Philippines. It’s a fascinating area.