Online brokerage firm Colfinancial.com said power demand for the year is likely to go back to its pre-pandemic level.
Colfinancial.com said emand expected to grow at 6.2 percent this year.
It said the country’s peak demand is expected to exceed 2021’s peak with Manila Electric Co., giving an initial forecast of a 12,387 megawatts (MW) peak demend for Luzon in May this year, 6.4 percent higher than Luzon’s peak in 2021.
Supply is expected to be less tight with the country’s generation capacity set to grow 16 percent.
Citing statement from the Department of Energy, Colfinancial.com said the increase in capacity translates to an additional 4,700 megawatts (MW) of electricity, the bulk of which will be from solar renewable energy at 75 percent.
“In terms of baseload power generation, we expect the increase in 2022 to mostly come from Aboitiz Power Corp.’s 670MW GNPower Dinginin unit 2, which is expected to begin commercial operation in the second quarter or third quarter,” it said.
Colfinancial.com, however, said there is no threat of an oversupply in electricity with the wholesale electricity spot market (WESM) prices likely remain the same.
Colfinancial.com also said power companies will remain unaffected by rising coal prices, despite rising by 79 percent last year.
