By Lenie Lectura - April 23, 2020
Independent Electricity
Market Operator of the Philippines Inc. (IEMOP) reported Thursday that spot
market prices last month dropped to P2.47 per kilowatt hour (kWh), from
P3.45/kWh in February, mainly due to low demand consumption from industrial
facilities and commercial establishments.
“In light of the ECQ
[enhanced community quarantine], the total energy and reserve requirements
started to drop significantly,” it said.
This resulted in a drop
in the system energy requirement of Luzon and Visayas grids by an average of
2,350 megawatts (MW), or around 19.8 percent lower as compared to pre-ECQ
levels.
“The significant drop in demand translated to
a lower Effective Spot Settlement Price [ESSP] for customers at PP2.47/kWh for
March 2020. This ESSP is 28.4 percent lower compared to P3.45/kWh in February
2020,” it reported.
The lower spot market
prices were reflected in the March billing period for the electricity volumes
bought from the WESM (Wholesale Electricity Spot Market). In the same month,
12.97 percent of the total energy requirement was settled at spot market
prices.
IEMOP said the spot
market prices further dropped until April 15. It added that this trend is
expected to persist until April 30.
From April 1 to 15,
IEMOP said spot market prices ranged from P0.0/kWh to P2.973/kWh, as the total
demand for the Luzon and Visayas grids averaged only 9,541 MW while generation
supply averaged at 13,911 MW.
During the first half
of April, IEMOP said spot market volume was cut to an estimated 10.98 percent
of the total energy requirement, which was likely due to the further reduction
in energy consumption during the Holy Week.
If and when the ECQ is
lifted after April 30, IEMOP said the average market prices are projected to be
P1.83/kWh for April and P6.68/kWh for May.
If the ECQ is further
extended up to May 10, IEMOP said there is still ample generation supply, but
this could result in slightly lower prices of around P4.30/kWh for May.
IEMOP also said that
there could be “restriction of coal generation by about 600 megawatts [MW]” as
a result of logistical delays in the transportation and delivery delays of coal
brought about by the ECQ.
“If this happens, power
plants utilizing available indigenous fuel [i.e., geothermal, hydro, and
natural gas] will be maximized. The result of the simulations indicates that
supply will continue to be sufficient. However, increase in market prices were
observed,” said IEMOP.
To ensure continuity of
WESM operation under ECQ, IEMOP has coordinated with the Department of Energy,
the Energy Regulatory Commission and with Inter-Agency Task Force on Emerging
Infectious Diseases prior to the start of the ECQ and relayed its Business
Continuity Plan.
“The WESM continues to
operate smoothly and efficiently,” it said.
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