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The Independent Electricity Market Operator of the Philippines (IEMOP) has expressed optimism that the downward trend in Wholesale Electricity Spot Market (WESM) prices will continue throughout 2025, supported
The Independent Electricity Market Operator of the Philippines (IEMOP) has expressed optimism that the downward trend in Wholesale Electricity Spot Market (WESM) prices will continue throughout 2025, supported by ample supply and upcoming renewable energy (RE) projects.
For the April 2025 billing period (March 26 to April 25, 2025), the system-wide average spot market price fell to PHP 4.52 per kilowatt-hour (kWh), a 15.3% drop from March’s PHP 5.34/kWh, offering encouragement for utilities and consumers. Regionally, Luzon prices averaged PHP 4.59/kWh (down 16.5%), Visayas PHP 4.52/kWh (down 17.6%), and Mindanao PHP 4.11/kWh (down 6.3%), reflecting a stable market despite rising demand.
This trend reflects robust supply growth outpacing demand. “Despite the growth in demand we see lower effective spot settlement prices, and that means we have a more stable supply compared to last year,” Isidro Cacho, IEMOP VP for Trading Operations, said in a press briefing today.
IEMOP reported that system-wide supply rose 9.7% to 23,341 MW, while demand grew 7.8% to 19,011 MW. Luzon saw supply climb to 16,558 MW (up 10.9%) against 13,330 MW demand (up 9.3%), Visayas recorded 3,001 MW supply (up 8.4%) versus 2,633 MW demand (up 5.0%), and Mindanao reached 3,782 MW supply (up 1.8%) with 3,048 MW demand (up 3.6%).
Looking ahead, IEMOP anticipates this stability will hold, even with planned power plant maintenance scheduled in the later half of the year. The consistent supply margin observed into May further supports this optimistic outlook.
Cacho noted, “We are seeing ample supply. And we are seeing that same margin all throughout the month of May. So we expect the same level of prices that we are experiencing now. Hopefully we maintain that level of supply margin all throughout the year,” Cacho said, noting the anticipated rollout of several RE projects to boost supply.
As of May 5, the PREMS Bulletin Board reported 179,715 Renewable Energy Certificates (RECs) available for sale, each representing one megawatt-hour of renewable generation from sources like solar and hydro. This significant REC volume underscores renewables’ contribution to WESM supply, aligning with the Renewable Portfolio Standards (RPS) and national goals of 35% renewable energy by 2030 and 50% by 2040.
While the reserve market faces challenges from renewable intermittency, it continues to support grid stability, ensuring the market remains robust. IEMOP’s hope for sustained low prices offers encouragement for utilities and consumers, with stable prices potentially easing costs despite rising demand.
What are your thoughts on the potential for sustained low electricity prices or the role of renewable energy in shaping the Philippines’ energy future? Share your views and join the conversation.
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