Average spot market price drops as power supply improves in February
MANILA, Philippines — Energy prices in the spot market fell month-on-month in February as more generating units were able to come back online to supply power to the grid, according to the Independent Electricity Market Operator of the Philippines (IEMOP).
The average wholesale electricity spot market (WESM) price went down by around 14% to P6.09 per kilowatt-hour (/kWh) in February compared to last month's level, IEMOP reported.
The market operator, however, clarified that the information is still subject for correction and validation since this was recorded from Feb. 1 to Feb. 25, 2022. Last month, the average spot market price reached P7.07/kWh amid forced power plant outages and the halting of WESM operations in Visayas due to Typhoon Odette.
"We have experienced a sufficient level of supply throughout the month of February....[This month] we have experienced an increase in supply given that some generators from outage are now available," IEMOP Manager for Market Simulation and Analysis John Paul Grayda said during a media briefing on Monday.
Average supply in February rose 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 increasing economic activities amid the decline in reported COVID-19 cases.
Earlier this month, the Energy Regulatory Commission lifted the suspension of the WESM over Bohol after the island was able to reconnect to the Visayas grid on Feb. 9.
To tide over any supply gaps, power distributors often tap the spot market where they can purchase additional electricity at higher costs compared to pre-agreed supply deals. The added costs are then passed on to consumers.
Utilities buy power from the WESM to fulfill a portion of their energy requirements.
668-MW coal plant unit ready for commissioning before elections
IEMOP's Grayda said that the 668-MW Unit 2 of the Bataan-based GN Power Dinginin (GNPD) coal plant is ready for testing and commissioning. An official from GNPD said the testing and commissioning date for the project is scheduled on the first week of May.
"Based on the latest information, the commercial operations of GNPD will start by July," Grayda said in a mix of English and Filipino on Monday.
Earlier, Manila-based policy group Institute for Climate and Sustianable Cities (ICSC) raised concerns that there may not be sufficient power for the automated polls if the second unit of the GNPD supercritical coal-fired power plant is not ready for commissioning before May, among other factors. Elections day is on May 9, 2022.
In a previous report, ICSC warned that power interruptions may put the entire voting process in question, expressing concern that the latest power supply outlook of the grid operator is "very tight" for the second quarter since it may bring about a red alert status, high power costs and rotating blackouts across the Luzon grid.
READ: ICSC: Power interruptions in Luzon possible on election day, during dry season
During a red alert, rotating power outages may take place in affected areas.
- Latest
- Trending
