After softening in the previous month, local spot power prices rose nearly 7% in early December as a series of power plant outages and capacity draws threatened Luzon’s power supply.
Wholesale Electricity Spot Market (WESM) prices increased from P8.53 per kWh recorded in the November billing period to 20% in December, based on data from the Philippines’ Independent Electricity Market Operator. Averaged P9.12 per kilowatt hour (kWh) at 11 days (Yemop).
“At the end of the billing period, we will have to determine the final pricing and we will know that by January next year,” Iemop corporate communications manager Josell Co said in a virtual briefing.
Co noted red and yellow alarms in the Luzon and Visayas power grids during the second half of November and the first few days of December.
The Philippines’ National Grid Corporation (NGCP), which operates the power grid, issued yellow and red alerts as many power facilities were either forced out of service or had significantly reduced capacity.
Red alerts warn of insufficient supplies that can lead to power outages, and yellow alerts occur when reserve power is insufficient.
“Hopefully, [there’s] No nasty stuff… forced stop again [may] The result is a tight supply in the market.that’s one of the big problems [affecting the supply]said Isidro Cacho Jr., Head of Corporate Strategy and Communications at Iemop.
Regarding the impact on WESM prices of the suspension of supply contracts between conglomerate San Miguel Corp. and distribution company Manila Electric Co. (Meralco), Cacho said that this would affect Meralco’s blended rates in the January billing period. said it depends.
Iemop said supply reached 12,534 megawatts (MW) as of December 13, down from 13,691 MW last month, while demand rose to 10,499 MW from 10,355 MW. This corresponds to a margin of 2,085 MW.
“Overall, we found electricity demand in 2022 to be normal in terms of its growth compared to previous levels in 2020 and 2021, when the impact of the pandemic was very felt.” The energy exchange operator said in a statement.
“On average, we grew 3.6% over 2019 levels. In terms of peak demand, demand increased by 8% from the peak demand recorded in 2019,” he added.
Co said it has observed a return to normality in terms of electricity demand in 2022, with demand expected to increase in 2023.
Soaring import fuel prices due to Russia’s invasion of Ukraine are also affecting spot power prices.
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