In June until the first half of July, the spot market prices of electricity in the Luzon and Visayas grids decreased to P6.07 per kilowatt-hour (kWh) from P6.67 per kWh, according to the Independent Electricity Market Operator of the Philippines (Iemop). This decline in prices was attributed to a decrease in demand during the rainy season.
Iemop reported that the average electricity demand for the two island groups dropped by 155 megawatts (MW) in July, going from 11,641 MW in June to 11,486 MW. Meanwhile, the supply stood at 14,858 MW, resulting in a supply margin of 2,935 MW, an increase from 2,909 MW in the previous month.
Isidro Cacho, the head of corporate strategy and communications at Iemop, stated that the stable supply margin could lead to lower spot market prices. He also mentioned improvements in plant performance and fewer outages, which contribute to the price decrease. Power distributors like Manila Electric Co. (Meralco) purchase electricity from the Wholesale Electricity Spot Market (WESM), where prices can be volatile depending on demand.
Cacho expressed optimism that the downtrend in WESM prices would continue if there were no unexpected plant outages in the coming months, despite the projected worst phase of the El Niño weather phenomenon in the latter part of the year. A yellow alert status in the Luzon grid was recently raised by the National Grid Corp. of the Philippines (NGCP) due to a transmission line tripping in a natural gas-fired plant. This affected over half a million power consumers in Metro Manila and nearby provinces.
Cacho emphasized that the major factor affecting spot market prices is plant outages, and there are currently no significant issues aside from that. He also mentioned that NGCP’s new transmission line projects expected to come online in the fourth quarter of the year could help ease spot market prices.
Recently, WESM prices dropped to P7.10 per kWh due to the reopening of the Ilijan gas-fired power plant.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
