Electricity spot market price falls in November

THE EFFECTIVE settlement spot price at the Wholesale Electricity Spot Market (WESM) fell 10.1% month-on-month to P1.86 per kilowatt-hour (kWh) in November due to ample power supply and the colder weather, according to its operator.

In a virtual media briefing on Wednesday, the Independent Electricity Market Operator of the Philippines (IEMOP) said weather conditions and consecutive typhoons in November reduced energy consumption by 9.2% year-on-year, equivalent to 636 gigawatt-hour (GWh), compared with the same month in 2019.

“This resulted in an effective settlement spot price of P1.86/kWh for the said month, which is lower by 10.1% from the month of October,” it said.

IEMOP said the price drop began after the damage caused by consecutive typhoons in November had a negative impact on market results, such as lower system demand and supply on Nov. 1 to 3.

“This was then succeeded by the declaration of Market Intervention by the System Operator followed by the imposition of Market Suspension by the Energy Regulatory Commission (ERC) on November 12 to 13 due to Typhoon Ulysses,” it said.

IEMOP said the system peak demand in November fell 4.7% year-on-year, equivalent to 580 megawatts (MW), while up until Dec. 10, peak demand fell 4.5%, or around 539 MW.

Among regions, the operator said peak demand in Luzon also declined in November and so far in December 2020 as against the same months last year.

IEMOP said Luzon peak demand for November fell 4.9% or 509 MW, while as of Dec. 10, it fell 4.4% or 440 MW.

For Visayas, it said peak demand fell 5.3% year-on-year or 113 MW in November, while in December, it also dropped 6.4% or 137 MW.

IEMOP said the contribution of hydro plants and wind plants in the power generation mix for November rose to 8.9% and 2.1%, respectively. However, the contribution of coal plants fell to 54.7%.

“Throughout the celebration of Christmas and the upcoming New Year, IEMOP will continue to provide reliable market services to ensure a bright holiday for every Filipino household,” it said. — Revin Mikhael D. Ochave