Market price

Average spot market price falls as electricity supply improves in February

Angelica Y. Yang –

February 28, 2022 | 2:37 p.m.

MANILA, Philippines – Spot market energy prices fell month-over-month in February as more generating units were able to come back online to supply power to the grid, the operator said. Independent Electricity Market of the Philippines (IEMOP).

The average wholesale electricity spot market (WESM) price fell about 14% to 6.09 pesos per kilowatt-hour (/kWh) in February from last month’s level, IEMOP reported. .

The market operator however clarified that the information is still subject to correction and validation since it was recorded from February 1 to February 25, 2022. Last month, the average spot market price reached 7.07 P/ kWh in the middle of a forced power plant. outages and the cessation of WESM operations in the Visayas due to Typhoon Odette.

“We experienced a sufficient level of supply throughout the month of February…[This month] we have seen an increase in supply as some broken down generators are now available,” IEMOP’s head of simulation and market analysis John Paul Grayda told a conference on Monday. hurry.

Average supply in February increased by more than 700 MW to 12,851 megawatts (MW).

Grayda also noted that average demand in February increased by more than 1,000 MW to 9,700 MW due to increased economic activities amid declining reported COVID-19 cases.

Earlier this month, the Energy Regulatory Commission lifted the suspension of WESM on Bohol after the island was able to reconnect to the Visayas grid on February 9.

To fill supply gaps, electricity distributors often exploit the spot market where they can buy additional electricity at higher costs than pre-agreed supply agreements. The additional costs are then passed on to consumers.

Utilities purchase electricity from WESM to meet a portion of their energy needs.

668 MW coal plant ready for commissioning ahead of elections

IEMOP’s Grayda said the 668MW unit 2 of Bataan-based GN Power Dinginin (GNPD) coal-fired power plant is ready for testing and commissioning. A GNPD official said the project’s test and go-live date is scheduled for the first week of May.

“Based on the latest information, GNPD’s business operations will begin in July,” Grayda said in a mix of English and Filipino on Monday.

Earlier, the Manila-based policy group Institute for Climate and Sustainable Cities (ICSC) raised concerns that there might not be enough power for automated polls if the power plant’s second unit supercritical coal-fired GNPD is not ready for commissioning until May, among other factors. Election day is May 9, 2022.

In an earlier report, the ICSC warned that the power outages could challenge the entire voting process, expressing concern that the network operator’s latest supply outlook is “very tight for the second quarter as it could lead to a red alert status, high electricity costs and rolling blackouts on the Luzon grid.

READ: ICSC: Power cuts in Luzon are possible on election day, during the dry season

During a red alert, rotating power outages may occur in affected areas.