Latest news with #spotpowerprices
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)
