Green Tiger Markets, the country’s first forward market for electricity, completed its first trade on its hedging platform for the Philippine Electricity market.
The company facilitated the transaction between two commercial market participants in the Luzon Grid with a price of Php 6800 per megawatt-hour from August to December this year.
This move marks the first time that commercial parties in the country have secured the price of power using an independent marketplace.
“The achievement represents a significant step forward as the nation strives to modernize its electricity supply chain,” Green Tiger Markets said in a statement.
Commercial buyers and sellers of wholesale electricity usually enter long-term agreements to contract forward delivery of power. If supply agreements are not available, consumers are obligated to buy and sell wholesale power through the Wholesale Electricity Spot Market (WESM).
“We strongly believe in the power of transparency, price discovery, and liquidity to create a sustainable and efficient energy market. This milestone supports our bold vision to implement proven tactics from established markets in underserved markets. It cements our commitment to ushering in a bright future across an array of commodities markets in the region,” Green Tiger Markets CEO John Knorring said.
