Initial average price of electricity in the Wholesale Electricity Spot Market (WESM) decreased for December in the entire country, according to the Independent Electricity Market Operator of the Philippines (IEMOP).
Based on data from IEMOP released yesterday, as of December 15, average price per kilowatt hour in WESM for the entire Philippines was at P3.99, which is a 9.6 percent decline compared to full month November’s P4.42 per kilowatt hour (kWh).
The decrease was driven by cooler temperatures which pulled down power demand, paired with higher available electricity supply.
Historically, prices in December and January are the lowest, according to Isidro Cacho Jr., IEMOP head of trading operations.
IEMOP said total average demand in the country for the period slightly went up by 0.2 percent to 13,692 megawatts (MW) from 13,659 MW, while average supply improved by 2.9 percent to 20,064 MW from 19,492 MW.
As of December 15, average price per kWh in the WESM for Luzon was at P3.79 per kWh, down by 10.6 percent from full month November’s P4.24 per kWh.
Average WESM price for Visayas for the period was at P4.39, an 8.9 percent decline from full month November’s P4.82 per kWh.
For the Mindanao grid, average WESM price per kWh for the period was also lower by 6.3 percent to P4.55 from full month November’s P4.85 per kWh.
The initial figures for December could still change depending on the full month development, IEMOP said.
Meanwhile, Cacho said there is a low chance to experience power supply issues next year, especially during the summer and election months, mainly due to cooler temperature with the absence of El Niño.
“If you look at the weather now, according to PAGASA (Philippine Atmospheric, Geophysical and Astronomical Services Administration) as well, La Niña is starting to be experienced. Of course, the impact of that, unlike last year’s El Niño, so going to summer next year (will not be that harsh). Based on our latest projections, we don’t see any red and yellow alerts,” Cacho said.
“Last summer, Luzon in particular, we reached 14,000 megawatts (MW). That’s an all-time peak. Next year, based on the projections, a bit higher but considering the La Niña, summer next year may not be as hot compared from this year… That provides some leeway on the demand side because what really drives demand during summer is air conditioning,” Cacho added.
IEMOP noted the peak demand in the Luzon grid at around 14,500 MW next year.
