The average price in the wholesale electricity spot market (WESM) almost doubled this month due to the gradual surge in demand for power as the economy reopens and as summer approaches, according to the Independent Electricity Market Operator of the Philippines (IEMOP).
John Paul Grayda, IEMOP manager for market simulation and analysis division, said in an online briefing WESM effective spot settlement prices as of March 17 hit P4.23 per kilowatt hour (kWh) from last month’s P2.22 per kWh.
Grayda said despite power plant outages and hotter weather conditions, power supply levels remained generally sufficient as it averaged at 13,151 megawatts (MW) from 13,080 MW.
Peak demand for the period improved by almost 9 percent to 12,476 MW from 11,485 MW and averaged at 9,904 MW, also 9 percent higher than last month’s 9,073 MW.
Grayda also updated IEMOP’s summer outlook and scenarios covering the period until June 25 this year under two simulations which both has not indicated any possible power shortages.
Under a case where no outage was factored in, average power supply and demand ratio for the months of April to June will be at 14,373 MW:9,998 MW; 14,446 MW:10,310 MW; and 14,675 MW:10,533 MW.
WESM average prices for the three months under the said case is at P2.22 per kWh; P2.69 per kWh; and P2.65 per kWh.
Under a scenario wherein 1,000 MW of power is on outage, power supply and demand ratio during the next three months are forecasted to be at 13,375 MW:9,998 MW; 13,447 MW:10,310 MW; and 13,676 MW:10,533 MW.
Average prices from April to June under this situation is at P5.10 per kWh; P6.94 per kWh; and P7.42 per kWh. – Jed Macapagal