Peak power demand rebound signals recovery — IEMOP
By Adam J. Ang – September 17, 2020 | 7:59 pm
from Business World
AN INCREASE in peak demand for electricity this month is an indication of the power sector’s recovery from the pandemic, according to the independent spot market operator.
In the first half of September, maximum power demand in the Wholesale Electricity Spot Market (WESM) rose by 1.3% year on year to 12,586 megawatts (MW), and increased as well by around 700 MW from August, according to the Independent Electricity Market Operator of the Philippines (IEMOP).
“I think magandang sign ‘yun na unti-unti tayong nakaka-recover (it’s a sign that we are gradually recovering),” IEMOP Chief Operating Officer Robinson P. Descanzo said in a virtual briefing Thursday.
The rise in peak demand runs counter to the 5.9% demand drop projected for 2020 by Fitch Solutions Country Risk & Industry Research. Its outlook took into account the government’s financial constraints, weak private investment, and disruptions to the labor market and supply chains.
Luzon registered a 3% rise in peak demand to 10,563 MW this month, while peak demand in the Visayas fell 64 MW to 2,099 MW.
IEMOP is counting on the rebound to be sustained in the coming months with more economic activity expected ahead of the holiday season, despite the possibility of demand dwindling with the potential onset of La Niña phenomenon in the remaining days of September.
Cooler temperatures and reduced activity during the rainy season usually dampen power consumption.
He said manufacturing is expected to pick up with the approach of the holidays.
Around this time, hydropower plants can generate sufficient power, which displaces “expensive” power from other baseload generators, he claimed.
Power usage may grow around 4.6% each year over the next decade as demand for clean power rises, according to Fitch.
In August, the WESM has 13,722 MW of available power, priced at an average of P1.97 per kilowatt-hour (kWh). The average demand was at 9,522 MW.
Earlier this month, a series of power plant outages led to spikes in spot prices, hitting a high of P36.11/kWh at one point. Such scenarios, however, are not likely going forward as price pressures are usually tempered around this time, Mr. Descanzo said.
