Meralco’s peak demand predicted to grow 2.9% to 8,346 MW this year

By Alena Mae S. Flores – November 3, 2023, 8:30 pm
from manilastandard.net

Power retailer Manila Electric Co.’s (Meralco) peak demand is expected to increase 2.9 percent this year to 8,346 megawatts from 8,111.02 MW in 2022.

“This 2023, peak demand in Meralco’s system is expected to increase by 2.9 percent. As economic activity normalizes, peak demand is expected to grow annually by an average of 4.3 percent per year from 2022 to 2032,” the company said.

Meralco’s 2022 peak demand was 3.9 percent higher than 7,808 MW in 2021.

Meralco said Luzon grid peak demand went up at a faster rate of 4.1 percent to 12,113 MW in 2022 from 11,640 MW in the previous year.

It said the entry of renewable energy systems would affect the long-term movement of peak demand.

The peak demand would be also affected by the effectiveness of new energy efficiency measures put in place and, by the changes in consumption behavior arising from the “new normal” brought about by the pandemic, it said.

“The magnitude of these will only be realized as the industry continues to develop,” the company said.

Meralco used the load factor approach when forecasting the peak demand. This was assumed to occur in the month of May every year due to seasonal increase in electricity consumption during the dry period.

Meralco’s monthly peak demand is projected to be at its lowest in January on cooler temperature.

Meralco expects residential connections to grow at an average rate of 4 percent annually from 2022 to 2032.

Residential customers are expected to account for 49.3 percent of the total captive consumption at the end of the forecast period.

Captive commercial connections are projected to increase 3.1 percent annually from 2022 to 2032, accounting for 42.1 percent of total captive consumption in 2032.

Captive industrial connections are anticipated to grow at a slower rate of 1.5 percent, which will account for 8.2 percent of captive consumption in 2032.

Meralco now has over 7.6 million customers in its franchise area.