Latest news with #IEMOP
Yahoo
26-07-2025
- Business
- Yahoo
Renewables growth in Philippines could cut power costs by 24% by 2029, report
The Independent Electricity Market Operator of the Philippines (IEMOP) has reported that a surge in renewable energy usage could drive down average annual spot power prices by as much as 24% by 2029, as reported by Reuters. Spot power prices in the country have already declined, reaching a post-pandemic low of 4.14 pesos ($0.0731) per kilowatt hour (kWh) in the first half of 2025, according to IEMOP data. The introduction of more cost-effective renewable generators is credited with displacing higher-cost plants this year, contributing to lower spot market rates. Planned additions to green energy capacity are expected to cut prices further - by between 0.90 pesos and 1.32 pesos per kWh by 2029. This contrasts with 2024's spot electricity prices that averaged 5.58 pesos/kWh. Natural gas-fired plants have also increased their output, which can be rapidly adjusted to balance fluctuations in renewable supply — another factor driving down current spot prices. Despite being one of Southeast Asia's most coal-dependent grids, the Philippines is witnessing its first annual decrease in coal-fired electricity production since 2008 due to an uptick in liquefied natural gas-powered generation. Lower spot market rates do not automatically equate to decreased electricity tariffs for consumers, however. Filipino consumers currently face some of Southeast Asia's highest electricity costs after Singapore. Manila Electric, the nation's leading power retailer, raised tariffs recently despite falling spot market rates because it is bound by expensive long-term contracts with generators. Nonetheless, many retailers are now purchasing more from the cheaper spot market as they aim to minimise reliance on costly long-term agreements. An analysis based on IEMOP data reveals that purchases from the spot market accounted for 21% of the overall supply over the two years ended in June 2025, compared with 12% during the two preceding years. "Renewables growth in Philippines could cut power costs by 24% by 2029, report" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
24-07-2025
- Business
- Reuters
Philippines' rising renewables use could push power prices 24% lower by 2029, market operator says
SINGAPORE, July 24 (Reuters) - Increasing adoption of renewable energy in the Philippines could push average annual spot power prices as much as 24% lower by 2029, its power market operator said on Thursday. Spot power prices in the Philippines have fallen to a post-pandemic low of 4.14 Philippine pesos ($0.0731) per kilowatt-hour (kWh) in the first half of 2025, data from the Independent Electricity Market Operator of the Philippines (IEMOP) showed. Increased output from cheaper renewable generators have helped displace higher-priced plants this year, the IEMOP said, estimating planned green energy capacity additions to slash prices by 0.90–1.32 pesos per kWh by 2029. Spot electricity prices averaged 5.58 pesos/kWh last year. Natural gas-fired power plants - which can quickly adjust generation to offset renewable supply volatility - also output this year, IEMOP said, helping bring spot prices down. The Philippines, which has the most coal-dependent grid in the region, is on track for an annual decline in coal-fired electricity output for the first time since 2008 due to rising liquefied natural gas-fired power generation. Lower prices on the spot power market don't necessarily translate into reduced electricity tariffs for Philippine residents, who pay the second highest electricity tariffs in southeast Asia behind Singapore. The country's top power retailer Manila Electric Co (MERALCO) ( opens new tab increased tariffs this month despite lower spot prices, citing higher charges from power generators with whom it has expensive supply deals. However, most retailers have increased buying on the spot market, as they seek to cut costs by reducing dependence on pricey long-term supplies. The share of spot market purchases rose to 21% of overall supply in the 24 months ended June, compared with 12% in the preceding two years, an analysis of IEMOP data showed. ($1 = 56.6450 Philippine pesos)
Time of India
22-07-2025
- Business
- Time of India
Philippines set for first coal power decline in 17 years amid rising LNG use
The Philippines is on track for an annual decline in coal-fired electricity output for the first time in nearly two decades, an analysis of market and government data showed, driven by rising liquefied natural gas-fired power generation. The Philippines has the most coal-dependent grid in Southeast Asia but its electricity tariffs, which are not subsidised, are the second highest in the region behind Singapore. The archipelago's liberalised market enables power retailers to pivot to LNG, analysts say, unlike in Indonesia and Malaysia, where cheap coal keeps subsidies manageable. Gas-fired generation surged more than 25 per cent in June year-on-year and rose 5.2 per cent to 10.36 terawatt hours (TWh) in the first half of this year, data from the Independent Electricity Market Operator of the Philippines (IEMOP) showed. That helped push the share of gas-fired power output to 17.5 per cent in the first half of 2025, up from a record low of 13.9 per cent in 2023, which was due to depleting reserves at the key Malampaya field, according to government data dating back to 2003. LNG is expected to meet a rising share of the Philippines' projected 5 per cent annual growth in power demand over the next decade as coal-fired power output is set to peak in 2030 due to a moratorium on new coal capacity construction, said James Ha, head of research for Asia-Pacific at Aurora Energy Research. In 2020, the Philippines stopped accepting new proposals for coal-based power projects to encourage investment in other energy sources like natural gas and renewables. Higher LNG imports will drive annual gas-fired output up by 65 per cent by 2030 from 2024 levels, Aurora's Ha said. Philippine consortium LNGPH signed the country's first long-term LNG deal in March with global trader Vitol, doubling down on improved prospects for the super-chilled fuel in the country of 114 million people. Consultancy Energy Aspects expects the Philippines' LNG import demand in 2025 to rise by more than 50 per cent to 2.1 million metric tons from 2024 due to the addition of new gas-fired capacity, senior LNG analyst Kesher Sumeet said. Coal's retreat Price-sensitive Asian nations with high reliance on coal have largely boosted renewable additions to slash emissions and address growing power demand instead of using LNG as a transition fuel. However, the Philippines has instead bet on LNG, whose usage has started inching up after it began importing the fuel in mid-2023. The country registered a 40 per cent increase in the generation capacity of its gas-fired power fleet in 2024 from end-2023 levels, IEMOP data showed. Meanwhile, coal-fired power output fell 5.5 per cent to 33.8 TWh during the period, IEMOP data showed, with generation falling for the fourth straight month in June and its share of the power mix dropping to 57.2 per cent from 61.9 per cent in 2024. Falling coal-fired power demand led to the first decline in coal imports since the COVID-19 pandemic during the six months ended June, while LNG imports rose 51 per cent in the same period, Kpler data showed. Coal's retreat - the first since 2008 - was also compounded by hydropower generation accounting for a higher share of Philippines' electricity mix during the first half of the year. Asian spot LNG prices have fallen about 13 per cent this year on tepid demand, further boosting the competitiveness of the fuel against coal. IEMOP data also showed a wave of planned outages in early 2025 at coal-fired power plants, which helped to boost the share of gas. "We think that the rising power demand in the Philippines will outpace renewables' growth and that combined with the coal phase-out policy would sustain Philippines' call on LNG in coming years," Energy Aspects' Sumeet said. Electricity generated from renewable sources in the Philippines has been rising, but growth has fallen well short of its ambitious targets.
Reuters
22-07-2025
- Business
- Reuters
Philippines set for first coal power decline in 17 years amid rising LNG use
SINGAPORE, July 22 (Reuters) - The Philippines is on track for an annual decline in coal-fired electricity output for the first time in nearly two decades, an analysis of market and government data showed, driven by rising liquefied natural gas-fired power generation. The Philippines has the most coal-dependent grid in Southeast Asia but its electricity tariffs, which are not subsidised, are the second highest in the region behind Singapore. The archipelago's liberalised market enables power retailers to pivot to LNG, analysts say, unlike in Indonesia and Malaysia, where cheap coal keeps subsidies manageable. Gas-fired generation surged more than 25% in June year-on-year and rose 5.2% to 10.36 terawatt hours (TWh) in the first half of this year, data from the Independent Electricity Market Operator of the Philippines (IEMOP) showed. That helped push the share of gas-fired power output to 17.5% in the first half of 2025, up from a record low of 13.9% in 2023, which was due to depleting reserves at the key Malampaya field, according to government data dating back to 2003. LNG is expected to meet a rising share of the Philippines' projected 5% annual growth in power demand over the next decade as coal-fired power output is set to peak in 2030 due to a moratorium on new coal capacity construction, said James Ha, head of research for Asia-Pacific at Aurora Energy Research. In 2020, the Philippines stopped accepting new proposals for coal-based power projects to encourage investment in other energy sources like natural gas and renewables. Higher LNG imports will drive annual gas-fired output up by 65% by 2030 from 2024 levels, Aurora's Ha said. Philippine consortium LNGPH signed the country's first long-term LNG deal in March with global trader Vitol, doubling down on improved prospects for the super-chilled fuel in the country of 114 million people. Consultancy Energy Aspects expects the Philippines' LNG import demand in 2025 to rise by more than 50% to 2.1 million metric tons from 2024 due to the addition of new gas-fired capacity, senior LNG analyst Kesher Sumeet said. Price-sensitive Asian nations with high reliance on coal have largely boosted renewable additions to slash emissions and address growing power demand instead of using LNG as a transition fuel. However, the Philippines has instead bet on LNG, whose usage has started inching up after it began importing the fuel in mid-2023. The country registered a 40% increase in the generation capacity of its gas-fired power fleet in 2024 from end-2023 levels, IEMOP data showed. Meanwhile, coal-fired power output fell 5.5% to 33.8 TWh during the period, IEMOP data showed, with generation falling for the fourth straight month in June and its share of the power mix dropping to 57.2% from 61.9% in 2024. Falling coal-fired power demand led to the first decline in coal imports since the COVID-19 pandemic during the six months ended June, while LNG imports rose 51% in the same period, Kpler data showed. Coal's retreat - the first since 2008 - was also compounded by hydropower generation accounting for a higher share of Philippines' electricity mix during the first half of the year. Asian spot LNG prices have fallen about 13% this year on tepid demand, further boosting the competitiveness of the fuel against coal. IEMOP data also showed a wave of planned outages in early 2025 at coal-fired power plants, which helped to boost the share of gas. "We think that the rising power demand in the Philippines will outpace renewables' growth and that combined with the coal phase-out policy would sustain Philippines' call on LNG in coming years," Energy Aspects' Sumeet said. Electricity generated from renewable sources in the Philippines has been rising, but growth has fallen well short of its ambitious targets.
