The average price of electricity at the Wholesale Electricity Spot Market (WESM) saw a notable drop in February, despite an uptick in power demand. Data from the Independent Electricity Market Operator of the Philippines (IEMOP) released on Wednesday revealed that the average price per kilowatt-hour (kWh) in February stood at P2.73, marking a 7.8 percent decrease from January’s P2.96.
This price reduction came as electricity supply in the country grew by 2 percent in February, offsetting the 3 percent rise in overall power demand, which surged to 12,904 megawatts (MW) from 12,529 MW. The overall increase in supply helped stabilize prices even as demand for electricity grew.
For Luzon, the price of electricity fell by 9.1 percent, from P2.98 per kWh in January to P2.71 in February. Demand in the region increased by 3.8 percent, reaching 9,071 MW from 8,741 MW, while supply improved by 3.7 percent, totaling 14,475 MW from 13,962 MW. In contrast, the Visayas experienced a 10.2 percent drop in WESM prices, from P3.13 per kWh in January to P2.81, even though power demand rose by 1 percent and supply increased by 1.1 percent.
However, the situation in Mindanao was different, as the average price per kWh increased by 2.6 percent, reaching P2.72 from January’s P2.65. Demand in the region rose by 1.3 percent, while supply saw a decline of 3.6 percent, highlighting potential supply constraints in the Mindanao grid.
Arjon Valencia, IEMOP corporate planning and communications manager, pointed out that coal remained the dominant energy source in February, contributing 55.8 percent of the total electricity generation in WESM, followed by natural gas at 17 percent. Renewable energy sources, including hydro and geothermal, accounted for a combined 18.3 percent.
While these figures reflect the initial market conditions for February, the final data could adjust as more information becomes available. For consumers, this price dip may provide relief, while energy policy planners will likely analyze the continued impact of supply dynamics and the role of renewable energy in stabilizing prices.
