Power spot prices down in January

Electricity prices at the Wholesale Electricity Spot Market (WESM) declined in January due to a higher average system margin, according to the Independent Electricity Market Operator of the Philippines (IEMOP).

Preliminary data from IEMOP showed that the WESM price system-wide dropped by 14.3% to PHP 2.96 per kilowatt-hour (kWh) in January, from PHP 3.45 per kWh in December 2024.

Supply decreased by 0.2% to 20,110 megawatts (MW). Demand, on the other hand, fell by 5.6% to 12,529 MW. This resulted in a 10.26% increase in the average system margin to 7,581 MW.

“Due to the increase in the average system margin, the system average price decreased by 14.3%, dropping to PHP 2.96 per kWh,” said Arjon B. Valencia, manager for corporate planning and communications at IEMOP.

In Luzon, the spot price decreased by 8.5% month-on-month, falling to PHP 2.98 per kWh from PHP 3.26 per kWh.

Available supply dropped by 1.6% to 13,962 MW. Demand also decreased by 6.4% to 8,741 MW.

WESM prices in the Visayas declined by 19.1% to PHP 3.13 per kWh from PHP 3.87 per kWh the previous month.

The grid’s supply dropped by 4.5% to 2,372 MW. Demand fell by 4.4% to 1,856 MW.

For Mindanao, IEMOP said that WESM prices decreased by 31.9% month-on-month to PHP 2.65 per kWh from PHP 3.88 per kWh.

Supply increased by 8.7% to 3,775 MW, while demand declined by 2.9% to 1,931 MW.

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