The Independent Electricity Market Operator of the Philippines on Thursday reported a P1.73-per kilowatt-hour decline in spot market prices, driven by demand reduction and supply increase.
IEMOP, the operator of the Wh, the trading floor of electricity, reported a decline in prices for the first two weeks of the June billing month.
“The decrease in prices can be attributed to several factors, including a reduction in demand and a modest increase in supply,” IEMOP said.
IEMOP data showed that the average WESM price in Luzon and Visayas dropped to P7.10 per kWh as of June 12 from P8.83 per kWh in May.
“This decline coincided with a notable increase in the average supply margin, which reached 2,833 megawatts. This represents a substantial 595-MW rise from the previous month’s figures,” IEMOP said.
It said the increase in supply margin indicates improved market conditions, with an adequate electricity supply available to meet consumer demand.
Mindanao exhibited a comparable trend, with the average WESM price decreasing to P3.29 per kWh in June from P6.21 per kWh in the previous month.
IEMOP said there was a significant development in the transmission system with the energization of the Balsik-San Jose 500kV Transmission Line.
This alleviated previous constraints in power flow from Bataan to Bulacan, which had caused limitations in supplying power to Metro Manila.
“With the energization of this 1,195 MW line, congestion in the area has been addressed, and market participants can expect a more stable and predictable pricing environment. Since its implementation, there have been no recorded instances of congestion in the area,” IEMOP said.
The WESM operator said the continuing ramp-up of capacity transfer from the Mindanao-Visayas Interconnection Project would be a boost to supply availability.
“The load test will gradually increase until it reaches its full transfer capacity by the third quarter of this year,” IEMOP said.
It said the resumption of the 1,200 MW Ilijan natural gas plant in Batangas, utilizing liquefied natural gas, was expected to further augment the energy supply in June.
“This comes as a response to the rapidly increasing demand, ensuring a more robust energy supply for June and beyond,” IEMOP said.