1 week ago
12
Brix Lelis - The Philippine Star
March 6, 2025 | 12:00am
The Independent Electricity Market Operator of the Philippines (IEMOP) reported that system-wide WESM rates dipped by 7.8 percent to P2.73 per kilowatt-hour from P2.96 per kWh on a monthly basis.
Philstar.com / File Photo
In February
MANILA, Philippines — The average price of power in the Wholesale Electricity Spot Market (WESM) declined for the third straight month in February, the lowest since January 2023.
The Independent Electricity Market Operator of the Philippines (IEMOP) reported that system-wide WESM rates dipped by 7.8 percent to P2.73 per kilowatt-hour from P2.96 per kWh on a monthly basis.
“Despite higher demand, the system margin remained stable at 5,725 megawatts, up by 1.3 percent from the previous month,” IEMOP corporate planning and communications manager Arjon Valencia said.
Operated by IEMOP, WESM is the centralized venue for trading electricity as a commodity where prices are determined by supply and demand.
For the Jan. 26 to Feb. 25 billing period, overall supply inched up by two percent to 20,512 MW from 20,110 MW previously.
System-wide demand likewise grew, rising by three percent to 12,904 MW from 12,529 MW.
By region, the average spot prices in Luzon and the Visayas both declined, while the power rate in Mindanao was slightly higher.
WESM rates in Luzon decreased by 9.1 percent to P2.71 per kWh from P2.98 per kWh as higher supply helped cushion the impact of rising demand.
Luzon’s supply grew by 3.7 percent to 14,475 MW from 13,962 MW, while its demand increased by 3.8 percent to 9,071 MW from 8,741 MW.
In the Visayas grid, electricity prices dropped by 10.2 percent to P2.81 per kWh from P3.13 per kWh.
The region’s supply saw a 1.1-percent uptick to 2,397 MW from 2,372 MW, while its demand edged one percent higher to 1,876 MW from 1,856 MW.
As for Mindanao, the spot market rate went up by 2.6 percent to P2.72 per kWh from P2.65 per kWh, driven by a 3.6-percent drop in supply to 3,640 MW from 3,775 MW as demand heated up by 1.3 percent to 1,956 MW from 1,931 MW.
In terms of output, Valencia said coal continued to be the top energy source, contributing 55.8 percent of the total power generation – slightly up from 55 percent in January.
Share from natural gas reached 17 percent, while oil-based generation stayed minimal at 0.4 percent.
Hydropower generation, meanwhile, accounted for the highest share among renewables at 9.6 percent, followed by geothermal (8.7 percent), solar (4.1 percent) and wind (1.8 percent).
According to Valencia, total trading value in the observed period declined to P8.78 billion due to “lower market activity and subdued prices.”
Under the Electric Power Industry Reform Act, IEMOP is mandated to promote a fair, competitive and reliable market for electricity trading in the country.
