Spot market power prices decline on softer demand, cooler weather
By Alena Mae S. Flores – December 17, 2024, 8:10 pm
from manilastandard.net
The Independent Electricity Market Operator of the Philippines (IEMOP) said Tuesday system-wide average electricity prices at the Wholesale Electricity Spot Market (WESM) declined in the first two weeks of December 2024 on lower demand and cooler temperature.
IEMOP preliminary data showed that average rates declined to P3.99 per kilowatt-hour, lower by 9.6 percent than P4.42 per kWh for Nov. 26, 2024 to Dec. 15, 2024.
Officials of IEMOP, the operator of the WESM, the trading floor of electricity, said the low pricing trend was expected to carry over for the entire month of December due to adequate supply and the onset of La Niña weather phenomenon.
System-wide average supply increased by 2.9 percent to 20,064 megawatts while average demand went up slightly by 0.2 percent to 13,692 MW. Supply margins increased to 3,044 MW from 2,609 MW.
“Actually, market prices are now lower. Although in November, there was a slightly increase, but I think relatively prices are still lower in the market. Primarily because of lower demand,” said IEMOP vice president for trading operations Isidro Cacho.
“Historically, December, January are the lowest prices for the market,” Cacho said.
Meanwhile, the Luzon grid also posted lower rates by 10.6 percent to P3.79 per kWh from P4.24 per kWh as average supply went up 4 percent to 14,191 MW from 13,645 MW. Demand remained flat at 9,667 MW.
The Visayas grid also posted lower rates by 8.9 percent to P4.39 per kWh from P4.82 per kWh. Visayas power supply increased 2.3 percent to 2,449 MW, while demand also increased 1.4 percent to 1,998 MW.
The Mindanao grid showed lower rates by 6.3 percent to P4.55 per kWh even as supply went down by 0.8 percent to 3,424 MW and demand eased to 2,026 MW.
IEMOP data also showed that coal is expected to account for 61.3 percent of the generation mix in December, followed by natural gas at 14 percent and hydro at 9. 1 percent.
Geothermal accounted for 8.2 percent; solar, 3.1 percent; wind, 1.7 percent; pumped storage, 1 percent; biomass, 1 percent; and oil-based, 0.3 percent.
