During its monthly media briefing, IEMOP discussed the highlights of WESM for February 2022 wherein a decrease in the average WESM rate from Php 7.07/kWh last January to Php 6.09/kWh this billing month was observed[1]. The price decline was attributed to the improvement of supply with the average supply increasing by 5.86% or 771 MW with the resumption of operations of several generators form maintenance outage.
The WESM rate declined this month despite the upsurge of system average demand by as much of 14.47% (1,236 MW). Similarly, the system peak demand went up from 11,018 MW last January to 11,985 MW. On the regional level, Luzon peak demand, increased by 6.48% (612 MW) from 9,444 MW and Visayas peak demand by 13.68% (234 MW) from 1,710 MW.
The Effective Settlement Spot Price (ESSP) for January 2022, however, settled at Php 7.02/kWh higher than the Php 6.20 /kWh ESSP for December 2021. The higher prices for January also reflected in the volume of the spot transaction which reduced from 8.3% in December 2021 to just 5.1% this January 2022. On the other hand, the total spot percentage decreased for this period from 8.3% to 5.1%. The total generation quantity for the January 2022 was recorded at 6,169 GWh.
IEMOP also gave a summary of its supply and demand outlook for the coming months, particularly from March to June, wherein they presented various scenarios that might occur. Given the increasing trend in demand due to the warmer climate, the Market Operator projects a generally sufficient supply condition enough to support the requirements during summer barring any major power plant unplanned outage. IEMOP also noted its continuing coordination with DOE, NGCP and WESM stakeholders in Mindanao in anticipation of the commercial operations of WESM in Mindanao especially with the pending testing and commissioning of the Visayas-Mindanao 450 MW submarine cable interconnection. With this, IEMOP assured its stakeholders that it would constantly provide updates should there be any remarkable developments in the projections as well as in the WESM.
[1] Figure as of 25 February 2022.
