Sept. power spot prices fall as weather cools

ELECTRICITY PRICES traded at the Wholesale Electricity Spot Market (WESM) declined in September as cooler weather set in, dampening demand, according to the Independent Electricity Market Operator of the Philippines (IEMOP).

Citing preliminary data from the WESM operator, the IEMOP said the average power price system-wide fell 34.7% month on month to P3.88 per kilowatt-hour (kWh) in September.

IEMOP said that the available supply rose 3.2% to 20,348 megawatts (MW). Demand during the period dropped 3.4% to 13,700 MW.

WESM prices in Luzon fell 39.1% month on month to P3.80 per kWh.

The grid’s available supply increased 4.9% from a month earlier to 14,327 MW. Demand fell 4.3% to 9,746 MW.

The average spot price in the Visayas was P4.56 per kWh, down 34.2% from a month earlier.

Available supply rose 5.3% to 2,387 MW, against a decline in demand of 1.3% to 1,955 MW.

Meanwhile, the WESM spot average in Mindanao rose 3.3% month on month to P3.48 per kWh.

Supply decreased 4.2% to 3,635 MW, while demand dropped 1.3% to 1,999 MW.

“Compared to the prior billing month (August), the supply margin in Mindanao is lower for September,” Arjon B. Valencia, manager of corporate planning and communication at IEMOP, said via Viber.

Asked if the lower average spot price can be sustained in the remaining months of the year, Mr. Valencia said that it would depend on the performance of the power plants.

“If the performance of the plants is the same as this month, i.e., no large outage, yes, it is possible for the WESM price to remain the same or even fall, particularly with wind generation tending to be stronger during Amihan season,” he said.

IEMOP operates WESM, where energy companies can buy power when their long-term contracted supply is insufficient for customer needs. — Sheldeen Joy Talavera