According to a media report released by the Philippine Electricity Market Corporation (PEMC), the operator of the wholesale electricity spot market (WESM) in the Philippines, the spot price of Php1,800 per megawatt-hour (MWh) recorded in May of this year is so far the lowest since the spot market began its commercial operations in June 2006.
The variables behind the sudden drop in electricity prices were said to be because of reduced demand due to cooler weather condition, early monsoon rains and typhoons which increased the dispatch of hydro power plants, and lower generation capacity outages.
Despite of a general expectation of a higher demand in May by most industries, the average power demand recorded was down by 4.07% to 5,035 megawatts (MW) for the said period. May temperatures, on the other hand, posted a lower 28.2 degrees Celsius as compared to April's 29.2 degrees Celcius, which further led to decreased power demand to cool households and establishments.
The variables behind the sudden drop in electricity prices were said to be because of reduced demand due to cooler weather condition, early monsoon rains and typhoons which increased the dispatch of hydro power plants, and lower generation capacity outages.
Despite of a general expectation of a higher demand in May by most industries, the average power demand recorded was down by 4.07% to 5,035 megawatts (MW) for the said period. May temperatures, on the other hand, posted a lower 28.2 degrees Celsius as compared to April's 29.2 degrees Celcius, which further led to decreased power demand to cool households and establishments.
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1 comment:
Distribution utilities should take advantage of the low price in the WESM, especially during the rainy season.
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