Wholesale Electricity Spot Market prices in the Philippines’ three grids may see a domino effect if the Visayas grid increases its reliance on supply from Luzon and Mindanao, according to the Independent Electricity Market Operator of the Philippines. The Visayas grid could see a spot market price increase of around 6 to 7 per kilowatt-hour, while prices in the Mindanao grid could rise by 4 to 5 per kWh. Currently, the WESM price for Visayas stands at 5.29 per kWh, while the Mindanao grid is at 4.99 per kWh. In Luzon, the current price is 4/kWh, but it could also increase by 5 to 6 per kWh next year due to growth in demand and potential unplanned outages. The Visayas grid may depend more on its neighboring regions for procuring additional supply, and forced outages in Luzon or Mindanao could impact the overall supply and drive up spot market prices. Planned maintenance works for some power plants in the first and third quarters of the year will also affect the grid’s average supply. However, generators have improved their performance, resulting in lower outages this year compared to last year. Higher economic activity could drive a potential increase in demand by 2026, with a projected peak demand of 14,600 MW in Luzon, representing a 5% growth.
