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News

15 December 2023
LOWER WESM PRICES FOR NOVEMBER AND DECEMBER

In a recent IEMOP briefing on the Philippine Wholesale Electricity Spot Market (WESM), the market has experienced a reduction in electricity demand coupled with improvements in supply levels translating to lower electricity prices in the spot market. Key highlights from the market operations as of December 10 reveal insights into pricing, generation sources, and upcoming initiatives.

Despite an 84MW increase in demand from the previous billing month, the WESM average price as of December 10 decreased by 0.22 PhP/kWh. The Luzon region saw a decrease of 0.11 PhP/kWh, Visayas by 0.52 PhP/kWh, and Mindanao by 0.5 PhP/kWh. Lower clearing prices during this period can be attributed to the combination of lower offer prices from generator participants, potentially influenced by the decline in global fuel prices. Additionally, supply improved as generating plants completed their annual maintenance program together with notable higher supply availability from wind power plants which is mainly prompted by the Amihan season, contributed significantly to this scenario.

In the November billing month, wind output witnessed a substantial increase of 102 GWh, marking a 1.4 times surge compared to the previous month. The system supply in Luzon, Visayas, and Mindanao continues to be dominated by coal and natural gas, accounting for 76% of the total generation. Geothermal and hydro contributed 8.9% and 8.3%, while solar and biomass plants witnessed considerable increases in their energy shares, reaching 221 GWh and 95 GWh, respectively.. Improved supply levels also reduced the dispatch of diesel plants and this contributed also to the lowering of market prices especially during peak demand periods.

Customers purchased 18.2% of the total metered consumption of 8,949 GWh in November 2023 from the spot market at an ESSP rate of 4.39 PhP/kWh. Up from the 16.9% last October billing month. The ESSP also represents a decline from the October rate of 6.94 PhP/kWh. Presently, the Independent Electricity Market Operator of the Philippines (IEMOP) is gearing up for the commercial operations launch of the Reserve Market this December 26, 2023.