Bilateral Contract Formation and Spot Market Equilibria in the Electricity Market

Brown bag seminar by Kenmore Espinoza, PhD candidate at the UP School of Economics. The seminar will be on December 3, 2026 (Wednesday), 12NN, at Room 301, Encarnacion Hall, School of Economics, University of the Philippines.

Seminar title: Bilateral Contract Formation and Spot Market Equilibria in the Electricity Market

Abstract:
Electricity prices in the Philippines have remained high despite the restructuring of the energy market and the establishment of the spot market under EPIRA. This outcome motivated the introduction of the Competitive Selection Process (CSP) to enhance competition and transparency in bilateral contracting. However, its system-wide effects, particularly its interaction with the spot market, remain underexplored. To analyze these dynamics, we develop a two-stage supply-function equilibrium model to assess (1) how contracting outcomes differ when agreements are formed through one-on-one negotiations, through a decentralized market with multiple generators, or through a centrally coordinated bilateral market, and (2) how contracting in each setting influences spot-market bidding strategies and resulting spot outcomes.

Register here:
Face-to-face: https://bit.ly/4rzIqUE
Zoom: https://bit.ly/48GTfg2

Source: UP School of Economics Facebook