Hot weather lifts power prices at spot market

By Alena Mae S. Flores – March 5, 2025, 8:15 pm
from manilastandard.net

The Independent Electricity Market Operator of the Philippines (IEMOP) reported a surge in the average price at the Wholesale Electricity Spot Market (WESM) this week.

The IEMOP said average prices reached P5.22 per kilowatt-hour when temperatures soared as the heat index hit 46°C in some areas of the country from P2.73 per kWh in February.

Valencia said the average system-wide supply decreased to 19,441 megawatts (MW), while demand increased to 13,105 MW. Peak demand also hit 16,210 MW, higher than in February 2025.

“The higher demand was mainly driven by warmer temperatures experienced lately, leading to increased use of cooling systems,” Valencia said.

He said the average price recorded was P5.22 per kWh, mainly affected by March 2 and 3 prices, reaching P6.64 per kWh on March 2 and P12.15 per kWh on March 3.

Based on IEMOP data, the system average price was only P2.73 per kWh in February, the lowest price since the integration of the Mindanao market to the WESM.

IEMOP said the average system supply and average system demand increased by 2 percent to 20,512 MW and by 3 percent to 12,904 MW in February, while system margin remained stable at 5,725 MW, up by 1.3 percent from the previous month.

Meanwhile, Valencia said Luzon’s supply grew by 3.7 percent to 14,475 MW, with demand increasing by 3.8 percent to 9,071 MW.

As a result, the margin improved to 4,091 MW, a 4.5-percent increase from January. The higher supply helped bring down Luzon’s average price by 9.1 percent to P2.71 per kWh.

In the Visayas, supply increased slightly by 1.1 percent to 2,397 MW, while demand remained steady at 1,876 MW.

The supply margin rose 14.5 percent to 458 MW, contributing to a 10.2 percent price drop, bringing the regional average to P2.81 per kWh.

Mindanao experienced a 3.6-percent decline in supply to 3,640 MW, while demand grew 1.3 percent to 1,956 MW as the region’s margin dropped 11.9 percent to 1,176 MW, causing the average price to rise by 2.6 percent to P2.72 per kWh.

Valencia said coal remained the primary energy source, contributing 55.8 percent of total generation, slightly up from 55 percent in January.

Natural gas continued its growth, reaching 17 percent, while oil-based generation remained minimal at 0.4 percent.

Among renewables, geothermal accounted for 8.7 percent, slightly down from 9.2 percent, and hydro generation declined to 895 GWh, making up 9.6 percent of total generation.