The Wholesale Electricity Spot Market (WESM), operated by the Independent Electricity Market Operator of the Philippines (IEMOP) witnessed a drop in electricity prices during the initial two weeks of the June billing month.
The average WESM price in Luzon and Visayas experienced a significant decrease of P1.73 per kilowatt-hour to P7.10 per kWh compared to last month’s P8.83 per kWh.
IEMOP attributed this decline to a notable increase in the average supply margin, which rose by 595 megawatts to reach 2,833 megawatts.
The improved supply margin signifies favorable market conditions, with ample electricity supply available to meet consumer demand.
The energization of the Mindanao-Visayas Interconnection Project and the repowering of San Miguel Corp’s 1,200 MW Ilijan gas plant have contributed to the improved market conditions.
The trend of declining prices was also observed in Mindanao, where the average WESM price decreased to P3.29 per kWh in June from P6.21 per kWh the previous month.
IEMOP highlighted a significant development in the transmission system with the energization of the Balsik-San Jose 500kV Transmission Line. This addition has alleviated previous constraints in power flow, addressing limitations in supplying power to Metro Manila.
Furthermore, the ongoing implementation of the Mindanao-Visayas Interconnection Project, which commenced in April 2023, is expected to reach its full transfer capacity by the third quarter of this year. This development will further enhance the energy transfer capacity between the two regions.
IEMOP also highlighted the contribution of the Ilijan power plant in augmenting the energy supply for June, responding to the rapidly increasing demand in the market.