11 February 2025, Pasig City – In January 2025, the system average price decreased by 14.3% from December 2024, dropping to 2.96 PHP/kWh- the lowest average price recorded since January 2023 brought about by relatively high supply margin following a low system demand amid cooler temperature. The system-wide average supply decreased by 0.2% to 20,110 MW (-41 MW), while average demand declined by 5.6% to 12,529 MW (-746 MW). This resulted in an average system margin of 7,581 MW, which was 10.26% higher than the previous billing period’s average system margin of 6,875 MW.
In Luzon, the average supply decreased by 1.6% to 13,962 MW (-230 MW), while average demand fell by 6.4% to 8,741 MW (-602 MW). This resulted in an average margin of 5,221 MW, which was 7.67% higher than the previous billing period’s margin of 4,849 MW.
Consequently, the regional average price in Luzon decreased by 8.5% to 2.98 PHP/kWh. Similarly, in Visayas, supply decreased by 4.5% to 2,372 MW (-112 MW), while demand declined by 4.4% to 1,856 MW (-86 MW). This shift in supply and demand led to a 19.1% reduction in the regional average price, which dropped to 3.13 PHP/kWh. In Mindanao, supply increased by 8.7% to 3,775 MW (+302 MW), while demand fell by 2.9% to 1,931 MW (-58 MW). As a result, the regional average price in Mindanao dropped significantly by 31.9% to 2.65 PHP/kWh.
Coal remains the dominant energy source, though its share decreased from 58.87% in December 2024 to 55.0% in January 2025. Meanwhile, natural gas saw a gradual increase, rising from 15% to 17% from the previous billing month. Among renewable sources, hydro generation slightly rebounded from 905 GWh in December 2024 to 956 GWh in January 2025. Geothermal energy remained stable, contributing around 8-9% of total generation. Wind and solar energy showed minimal changes, with wind generation slightly decreased and solar generation slightly increasing in January 2025.
Overall, total energy generation (GWh) is lower due to reduced demand, falling by 2.75% from 9,245 GWh in December 2024 to 8,991 GWh in January 2025.
Meanwhile, total reserve requirements continue to be fulfilled through the market. Zonal prices for reserve commodities decreased across all regions. However, regulation and contingency reserve prices in Visayas remain at a higher level, compared to Luzon and Mindanao, as oilbased plants cleared the reserve market in the region.
Market Development Updates
Trading participants under the Renewable Energy Market (REM) have kickstarted the trading activities following the commencement of full commercial operations on 26 December 2024 as declared by the DOE. As of 3 Feb 2025, a total of 46,634 Renewable Energy Certificates (RECs) amounting to 9.68million pesos with an average price per REC of PHP 207.47 have been traded in the REM. The REM is the venue for trading of RECs, each of which can be sold at a PHP 241.56 price cap, to facilitate compliance of mandated participants with the Renewable Portfolio Standards (RPS) obligations.
Additionally, IEMOP, as the Central Registration Body (CRB) of the retail market has made, on 7 February 2025, the first customer switch from captive to the contestable market under the Retail Aggregation Program (RAP). Under the Omnibus Rules for Customer Choice Programs in the Retail Market issued by the Energy Regulatory Commission (ERC) on 14 August 2024, the RAP involves the aggregation of lower-level end users, under certain conditions, to meet the 500kW Retail Competition and Open Access (RCOA) demand threshold after which the aggregated group can then be supplied by their chosen retail supplier, also referred to as retail aggregator under the RAP. The RAP is one of the customer choice programs in the retail market along with the RCOA and Green Energy Option Program (GEOP). RCOA allows electricity consumers, particularly those with electricity demand of 500kW and above to choose their electricity supplier whereas under GEOP, any consumer with a demand of at least 100 kW can voluntarily opt to source their electricity from renewable energy sources.
“IEMOP commends the retail aggregator, PrimeRES Energy Corporation, as well as the aggregated end-users under the Manila Water Company, Inc., for their participation and confidence in the Retail Aggregation Program (RAP) – one of the customer choice programs of the retail market. IEMOP congratulates the ERC and DOE for this significant milestone.” said IEMOP President and CEO, Atty. Richard J. Nethercott.
