Assessment of Wholesale Electricity Spot Market (WESM) Price Patterns
The Wholesale Electricity Spot Market (WESM) is the Philippines’ central venue for the trading of electricity. The WESM aims to encourage efficient investments in future generation needs while considering the commercial outcomes for existing generation investments in the context of regulatory stability and consumer protection. This is achieved through the WESM price-mitigating measures. As the cost structure of the WESM evolves with higher renewable energy generation targets defined by the Clean Energy Scenario, increased volatility is anticipated due to the rising share of intermittent generation resources. This shift underscores the growing need for peaking or firming generation options. These price-mitigating measures or caps were, however, set in 2014 and do not reflect present market conditions. As such, the Philippines Electricity Market Corporation, with support from the Southeast Asia Energy Transition Partnership, initiated a review and is conducting an assessment of the price mitigation measure for the Philippines WESM.
Implementing Partners
Intelligent Energy Systems
In partnership with
Philippines Electricity Market Corporation
Strategic Outcome
De-risking Investments on Renewable Energy, Energy Efficiency and Fossil Fuel Phasedown
