IEMOP forecasts stable Feb prices, Jan decline

The Independent Electricity Market Operator of the Philippines, Inc. (IEMOP) forecasts an increase in power prices at the Wholesale Electricity Spot Market (WESM) during the dry season due to higher demand.

Chris Warren C. Manalo, assistant manager at IEMOP's market simulation and analysis division, noted that spot prices for February are expected to be similar to January rates because of cold weather keeping demand stable.

Isidro E. Cacho Jr., head of trading operations at IEMOP, said this year’s power demand could be lower than last year due to La Niña conditions, compared to El Niño in 2023 which caused higher prices and demand.

With more committed power plants coming online and the economy growing, supply is expected to stabilize, leading to more secure and stable transmission of power.

For January, IEMOP reported a decline of 14.3% in average spot price to P2.96 per kilowatt-hour (kWh), citing high supply margins due to low system demand as temperatures cooled.

IEMOP anticipates resolving congestion issues with new transmission lines committed by the National Grid Corp. of the Philippines, which is expected to expand further this year.