Electricity prices spike in August amid power plant outages

Average electricity prices in the Philippines’ wholesale market rose sharply in August 2025 due to a combination of higher nationwide power demand and several power plant outages, according to the Independent Electricity Market Operator of the Philippines (IEMOP).

System-wide prices increased by PHP 0.61 per kilowatt-hour (kWh) to PHP 4.59/kWh from July’s PHP 3.99/kWh, reflecting tighter supply conditions.

Total available supply slightly declined by 0.7 percent to 20,611 megawatts (MW), while demand rose 1.7 percent to 14,052 MW.

In Luzon, average prices dipped marginally to PHP 3.76/kWh from PHP 3.92/kWh in July, despite stronger demand and supply levels.

This easing was partly due to increased electricity exports to the Visayas through the high-voltage direct current (HVDC) link, which helped stabilize prices.

However, the Visayas region saw prices surge to PHP 6.40/kWh from PHP 4.39/kWh, driven by coal plant outages and biomass facility shutdowns following the end of the milling season.

These disruptions prompted yellow alerts on August 1, 4, and 5, signaling thinning reserves in the grid.

Mindanao experienced the steepest rate increase, with prices jumping to PHP 6.66/kWh from PHP 3.80/kWh due to coal plant outages and reliance on more expensive generation sources.

This also triggered a yellow alert in the region on August 1.

Renewable energy contributed 26 percent to overall generation during the month, reflecting a modest shift in the energy mix.

Hydropower’s share rose to 12.6 percent, aided by rainfall from the southwest monsoon and recent typhoons.

Solar energy grew to 4 percent of the supply, while coal’s share declined to 50.6 percent from 54.1 percent in July.

Geothermal power accounted for 7.8 percent, while natural gas increased its share to 22 percent.

Retail electricity purchases made up 23 percent of consumption, or 2.28 terawatt-hours (TWh), in August.

Spot market activity also increased, with the effective spot settlement price (ESSP) averaging PHP 5.55/kWh, up from July’s PHP 4.17/kWh.

Total wholesale electricity trading reached PHP 15.3 billion for the period, reflecting the higher prices and increased volume of transactions.