The Independent Electricity Market Operator of the Philippines (IEMOP) projected peak power demand rising 6 percent at the Wholesale Electricity Spot Market (WESM) as temperature climbs in the hot months forward when the island groups across the country demand the most from the power grid.
IEMOP briefed energy reporters that peak demand in the Luzon grid could rise 6 percent this year to 13,273 megawatts. Peak demand in the Visayas could rise as high as 7 percent to 2,628 MW but Mindanao will likely post the largest demand rising 8 percent at peak to 2,650 MW.
Peak demand in Luzon last year stood at 12,550 MW, 2,458 MW in Visayas and 2,315 MW in Mindanao.
Isidro Cacho Jr. IEMOP head of trading operations, is hopeful the anticipated WESM price rise is not aggravated further by unforced power plant outages in the hot months.
The various power companies observe the no-maintenance-shutdown rule in the April to June period when power demand is highest and ambient temperature is north of normal.
“Hopefully, with no forced outages, we don’t see any significant increase in prices,” Cacho said.
Cacho is also hopeful the sharing of excess power capacities as the Mindanao-Visayas Interconnection Project comes online helps temper any WESM price increase down the line.
Based on initial IEMOP data, the increase in electricity rates in the sport market in March was due to thinning margins amid higher demand.
As of 24 March, the price per kilowatt hour (kWh) at the WESM across the Philippines averaged P5.46 or 35.5 percent higher than only P4.03 per kWh in February.
Electricity demand during the period went up 6.6 percent to 13,185 MW from 12,372 MW.
Average supply increased 0.73 percent to 18,956 MW from 18,818 MW. Power margin for the period narrowed by 18.9 percent to 3,860 MW from 4,757 MW.
