Electricity prices in the Wholesale Electricity Spot Market declined slightly in February 2026 as stronger supply conditions in Luzon helped stabilize the national power market. The system-wide average price settled at PHP 3.50 per kilowatt-hour, lower than PHP 3.56 per kWh in January, reflecting improved generation availability across the grid.

Data from the Independent Electricity Market Operator of the Philippines showed that average available power supply across the three grids increased to 19,992 megawatts (MW) during the month. This represented a 4.4% increase from January levels. Electricity demand also rose but at a slower pace, reaching 12,874 MW, or 3.1% higher than the previous month. Because supply expanded faster than demand, the system maintained a larger buffer of available capacity, helping ease spot market prices.

Luzon supply improvement drives price decline

The decline in national electricity prices was largely driven by improved supply conditions in the Luzon grid. Electricity demand in Luzon increased by 442 MW, while available generation rose more significantly by 1,058 MW as several power plants returned to service following maintenance and outages.

This increase widened Luzon’s supply margin by 732 MW, allowing the region’s average market price to fall to PHP 2.69 per kWh from PHP 3.25 per kWh in January. The return of generating units to the system helped reduce the need to dispatch higher-cost plants during peak demand periods.

Visayas and Mindanao face tighter supply

While Luzon experienced improved supply conditions, the Visayas and Mindanao grids recorded tighter margins during the same period. Several generating units in these regions experienced outages, while electricity transfers between grids fluctuated due to operational constraints.

These conditions pushed regional market prices higher. Average prices in the Visayas and Mindanao rose to around PHP 5.25 to PHP 5.37 per kWh, compared with PHP 4.24 to PHP 4.27 per kWh in January.

Transmission constraints also influenced price movements between regions. Under normal operating conditions, the Visayas grid receives additional electricity from Luzon through the Leyte–Luzon transmission interconnection. During February, the link frequently operated near its transfer limit, restricting the flow of lower-cost electricity from Luzon to the Visayas.

Similarly, the Mindanao–Visayas interconnection experienced periods of constrained transfers, which limited the movement of electricity between the two grids and contributed to regional price differences.

Generation outages affect dispatch patterns

Several generating units across Luzon, Visayas, and Mindanao underwent planned maintenance during February. Some plants also experienced unexpected shutdowns during the month. When supply becomes tight in certain areas, the system dispatches higher-cost generating units to meet electricity demand.

This dispatch pattern occurred more frequently in the Visayas and Mindanao grids, contributing to the higher regional market prices recorded during the month.

Renewable energy contribution

Renewable energy sources accounted for about 27% of total electricity generation in February. Coal remained the largest source of electricity supply, although its share declined compared with the previous month.

Generation from natural gas, hydro, and solar plants increased during the period. These increases reflected improved operating conditions and seasonal variations in renewable energy output across the country.

Spot market trading activity

Electricity traded through the spot market slightly increased during February. Spot market transactions accounted for 13.7% of total electricity traded, up from 13.1% in January.

Despite the increase in trading activity, the total value of spot market transactions declined because of lower electricity prices. The total value dropped from PHP 11.16 billion in January to PHP 10.76 billion in February.

Reserve market developments

Activity in the reserve market also increased during the month. The reserve market provides backup capacity that helps maintain grid reliability when supply conditions tighten.

A decline in contracted reserve volumes led to greater reliance on reserve capacity offered through the spot market. This shift resulted in higher reserve market transactions during February.

IEMOP said it continues to monitor electricity supply and demand conditions closely in coordination with the system operator and market participants to support reliable and efficient power system operations.

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