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Philippines: Power prices up this month as rising temperatures drive up demand
MANILA, Philippines — Average electricity spot market prices for Luzon and Visayas markets are up this month, as rising temperatures pushed demand higher, according to the Independent Electricity Market Operator of the Philippines (IEMOP).
In a virtual press briefing, data provided by IEMOP showed that the average wholesale electricity spot market (WESM) prices for Luzon and Visayas rose to P7.68 per kilowatt-hour as of April 23 from P6.57 per kWh in the March billing period.
“This is due to the increase in average demand, which went higher by 789 megawatts from 10,244 MW to 11,033 MW in April. Demand is really expected to go higher during the summer months as temperatures in some areas of the country reached up to 48 degrees Celsius,” IEMOP knowledge management services assistant manager Karla Rica said.
Luzon power demand recorded a new peak at 12,221 MW on April 19, while Visayas demand peaked at 2,380 MW on April 17, 2023.
IEMOP said that while demand for electricity increased due to rising temperatures brought about by the dry season, the market remained stable, with ample supply levels across all grids.
Despite the increase in demand, supply levels for Luzon and Visayas improved from 14,226 MW in March to 14,612 MW in April as fewer generators were scheduled for outage.
With two remaining days left to complete the whole April billing month, IEMOP corporate strategy and communications head Isidro Cacho said there is unlikely to be a major change in the market price level recorded as of April 23.
“There may be a change, but in terms of the level, it will almost be the same. Hopefully it goes down, but given the two days left of the April billing month, it may not be that significant,” he said.
Cacho said there is also a strong chance for market prices to remain elevated at above the P7 per kWh level next month given the ongoing dry season.
“I hope it will go down, but based on the current trends in terms of the demand and the impact of the weather, the probability of it remaining at P7 per kwh level in May is high,” Cacho said.
“Remember, May is still part of the summer months, and there is that expectation of El Nino,” he said.
Meanwhile, for Mindanao, the average demand also registered an increase from 1,752 MW in March to 1,790 MW in April.
IEMOP said Mindanao recorded ample supply levels at around 3,018 MW for March and April.
As a result, IEMOP said market price for Mindanao went down from P6.56 per kWh in March to P5.36 per kWh in April.
The WESM Mindanao successfully went on commercial operations on Jan. 26.
IEMOP has reiterated the importance of energy efficiency and conservation in managing the electricity market, especially during peak demand periods.
It encouraged consumers to practice energy-saving measures such as turning off lights and unplugging appliances when not in use.
“By working together, consumers and the energy sector can ensure a stable and reliable electricity supply while keeping costs reasonable for all,” IEMOP said.
Source: https://www.philstar.com/business/2023/04/26/2261599/power-prices-month-rising-temperatures-drive-demand