Initial average price of electricity in the Wholesale Electricity Spot Market (WESM) in Luzon and Visayas for March increased, according to the Independent Electricity Market Operator of the Philippines (IEMOP).
However, the firm recorded a decrease in initial average spot prices in Mindanao for the similar period.
IEMOP said in an online briefing yesterday the increase for Luzon and Visayas was mainly due to higher average power demand amid lower available reserves.
As of April 22, average price per kilowatt hour (kWh) in the WESM for Luzon and Visayas is at P7.68 which is 16.9 percent higher from full month March’s P6.57 per kWh.
IEMOP said average demand in the two major islands for the period jumped by 7.7 percent to 11,033 megawatts (MW) from 10,244 MW.
Average supply in Luzon and Visayas for the period grew by 2.7 percent to 14,612 MW from 14,226 MW as average power reserves for the period slumped 37.47 percent to 624 MW from 998 MW.
IEMOP said that for the Mindanao grid, average WESM price per kWh is at P5.36, an 18.29 percent decline from full month March’s P6.56 per kWh.
Average demand in the island for the period improved by 2.17 percent to 1,790 MW from 1,752 MW while average supply slightly dropped to 3,018 MW from 3,019 MW as average reserves fell by 46.63 percent to 111 MW from 208 MW.
Isidro Cacho, IEMOP corporate strategy and communications head, said in a virtual briefing yesterday the P7 per kWh range for power spot prices may persist for the rest of the summer period.
“Given the current trend and we have the El Niño, it will impact hydro plants. I hope that it may still go down but given the current trend of demand and the impact of weather, it is hard to say for certain but it is possible (to remain high). The probability of it remaining at P7 per kWh on May is high,’ Cacho said.
IEMOP added so far, peak demand in the Luzon grid for this year occurred this month. Demand reached 12,221 MW last April 19 which is 6.34 percent higher compared to April 2022’s peak demand of 11,492 MW and 0.97 percent higher compared to full year 2022’s peak demand of 12,103 MW which was recorded in May 2022.
Cacho that in the last four years except during the height of the pandemic in 2020, Luzon grid’s peak demand historically occurred either in May or June.
