The Independent Electricity Market Operator of the Philippines (IEMOP) reports that electricity prices eased at the start of the year, with the system average price decreasing by 14.3% to Php 2.96 per kilowatt-hour (kWh).
Total energy generation dropped by 2.75% from December’s 9,245 GWh to 8,991 GWh in January, largely driven by reduced demand.
Data from the market operator revealed that despite a 0.2% decrease in the system-wide average supply to 20,110 megawatts (MW), demand dropped significantly by 5.6% to 12,529 MW. This resulted in an average system margin 10.26% higher than the previous billing period’s 6,875 MW.
In Luzon, the average supply declined by 1.6% to 13,962 MW, while demand dropped by 6.4% to 8,741 MW. This brought the average price to Php 2.98 per kWh.
Meanwhile, Visayas saw a 4.5% drop in supply to 2,372 MW, while demand fell by 4.4% to 1,856 MW. This resulted in a 19.1% reduction in the regional average price to Php 3.13 per kWh.
Mindanao experienced a notable increase in supply, rising by 8.7% to 3,775 MW, even as demand declined by 2.9% to 1,931 MW. This shift led to the largest price reduction among the regions, with the average price falling by 31.9% to Php 2.65 per kWh.
IEMOP also reported that coal remained the primary energy source in January, saying “Coal remains the dominant energy source, though its share decreased from 58.87% in December 2024 to 55.0% in January 2025. Meanwhile, natural gas saw a gradual increase, rising from 15% to 17% from the previous billing month.”
Renewable energy, however, showed mixed trends. Hydro generation rebounded to 956 gigawatt-hours (GWh), up from 905 GWh the previous month. Geothermal remained stable, contributing 8% to 9% of total generation. Solar generation rose slightly, while wind output declined.
The improved system margin and lower power prices highlight a critical shift in the country’s energy dynamics, underscoring the need for continued investments in renewable and sustainable energy solutions.
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