WESM prices rise in Nov

By Jed Macapagal – December 6, 2024
from Malaya Business Insight

INITIAL average price of electricity in the Wholesale Electricity Spot Market (WESM) in the entire country in November slightly increased, according to the Independent Electricity Market Operator of the Philippines (IEMOP).

Data from IEMOP released on Thursday showed as of November 25, average price per kilowatt hour (kWh) in WESM in the entire Philippines was at P4.42, a 0.6 percent increase compared to October’s P4.39 per kWh.

The increase was driven by the decrease in power supply availability and energy demand.

Arjon Valencia, IEMOP corporate planning and communications manager, said in a message to reporters on Thursday the minimal price uptick in the WESM was also pushed by lower energy supply margins and the decline in the contribution of power from coal plants offered at the spot market.

“…While coal remained the largest contributor in the generation mix, its share decreased slightly from 60.3 percent in October to 58.1 percent in November. Renewable energy sources showed growth, with hydropower generation increasing and solar and wind energy also contributing more,” Valencia said.

Valencia said “categorically,” coal-fired power plants offer the lowest trade prices in the WESM.

IEMOP said total average demand in the country for the period went down 2.2 percent to 13,659 megawatts (MW) from 13,972 MW while average supply decreased 2 percent to 19,492 MW from 19,897 MW.

As of November 25, average price per kWh in the WESM in Luzon was at P4.24 per kWh which is an 8.9 percent increase from October’s P3.89 per kWh while average WESM price in the Visayas was at P4.82 which is an 18.6 percent drop from October’s P5.93 per kWh. For the Mindanao grid, average WESM price per kWh for the period was also reduced by 6.6 percent to P4.85 from October’s P5.20 per kWh.