In its monthly media briefing, the Independent Electricity Market Operator of the Philippines (IEMOP) noted that for the September Wholesale Electricity Spot Market (WESM) results, average demand rose by 1.47% or 154 MW to 10,639 MW, while average supply was reduced by 4.73% or 675 MW to 13,599 MW due to generator outages. The average electricity market price was recorded at 9.12 PHP/kWh as compared to the previous month’s 7.26 PHP/kWh. After accounting for all bilateral and spot market transactions, the effective settlement price for September was recorded at 9.16 PHP/kWh which was the highest for the year.
For September, total generation from diesel plants accounted for 220 GWh (2.9% of the generation mix) compared to 93 GWh (1.2% of the generation mix) production last August. For Coal power plants, the contribution for September is 4,434 GWh (57.6%), Natural Gas at 1,407 GWh (18.3%), Geothermal at 772 GWh (10%), Hydro plants at 582 GWh (7.6%), Variable Renewable Energy Resources (Solar and Wind) at 172 GWh (2.8%) Biomass plants at 67 GWh (0.9%), and Battery Energy Storage Systems at 2 GWh (0.03%).
During the briefing, IEMOP also launched its advocacy for the “Efficient Use of Energy Towards Productivity”. This advocacy is in line with the Market Operator’s thrust to raise awareness towards the efficient use of electricity to help lower the demand not only during peak hours but also during off-peak hours without sacrificing productivity which stimulates economic growth. Lowering demand will redound in a reduction in the utilization of expensive fossil fuels in the grid. This can also result in a reduction in market clearing prices in the WESM which would be advantageous to consumers. IEMOP’s advocacy echoes the Department of Energy’s (DOE) call on Energy Efficiency and Conservation which aims to “institutionalize energy efficiency and conservation as a national way of life geared towards the efficient and judicious utilization of energy by formulating, developing, and implementing energy efficiency and conservation plans and programs.”
IEMOP noted that unplugging electronic appliances and equipment when not in use or on standby mode may result in a considerable decrease in demand especially if multiplied by the million. Setting ACU temperatures from extremely low to comfortable degrees may also contribute to a significant reduction in demand. Using energy-efficient lighting or turning off the lights during noon breaks can also contribute to the reduction of daytime peak demand.
In addition, IEMOP is undertaking studies to broaden this advocacy and support efforts for demand-side management that will ensure efficient use of energy towards productivity. IEMOP emphasized that starting this advocacy now can be very helpful in ensuring a secure and reliable electricity supply, particularly in the coming summer months when electricity demand is at its height.
For four (4) years now, IEMOP has maintained its high level of commitment to delivering excellent and world-class market operations services to all WESM and RCOA stakeholders. To commemorate this milestone, it published a special report on the power industry situation which showcases data-driven analysis and provides recommendations with the end goal of ensuring the security, reliability, and affordability of electricity in the Philippines.
You may download a copy of the report here: IEMOP Special Report: Philippine Electric Power Industry Assessment