A cash-settled forward market brings transparency and stability to the Philippines’ electricity sector—if regulators voice their support

The challenge of electricity markets is that electrons do not travel well across time. Supply and demand must match instantaneously, and generation cannot be stored at scale—at least, not cheaply. But price risk can be.

Green Tiger Markets (GTM) launched the Philippines’ first exchange-based forward electricity market in 2023.  Our initial premise surrounded offering financially settled Contracts for Difference (CFDs) on our own marketplace. The concept enabled generators and distributors of electricity to hedge against price volatility in the Wholesale Electricity Spot Market (WESM). 

The bigger picture: The Green Tiger Marketplace offers a way to stabilize electricity prices across the energy supply chain. Predictable electricity cost has the dual benefit of advancing long-term infrastructure investments and also reducing consumer bill shock. 

Since then, we became the first electricity market to offer custom hedging contracts for intraday periods, separating the day into Morning, Midday and Evening segments.  

Financial Hedging, such as Contracts For Difference (CFD), is an established business practice in the Philippines electricity industry among generators and retail electricity suppliers (RESs). CFDs improve the efficiency of the electricity market by allowing participants to adjust hedging ratios that reflect their expectations of future supply and demand conditions.

However, the nation’s Distribution Utilities (DUs) have not embraced CFDs as a price risk management tool to date. Following discussions with industry leaders, we understand that DUs have refrained from this practice due to ambiguity in the interpretation of regulatory guidelines as stipulated by the Energy Regulatory Commission (ERC).

It has been an incredibly exciting month for the Green Tiger Markets team. We are thrilled to announce that we have successfully completed our first trade on the GTM Marketplace, matching a Generator and a RES for August through December Luzon Around the Clock (RTC). This achievement represents a significant milestone for the Philippines Electricity Market and we are honored to be the first and only marketplace to arrange a financially settled CFD for Philippines Energy.

It has been an incredibly exciting month for the Green Tiger Markets team. We are thrilled to announce that we have successfully completed our first trade on the GTM Marketplace, matching a Generator and a RES for August through December Luzon Around the Clock (RTC). This achievement represents a significant milestone for the Philippines Electricity Market and we are honored to be the first and only marketplace to arrange a financially settled CFD for Philippines Energy.

It has been an incredibly exciting month for the Green Tiger Markets team. We are thrilled to announce that we have successfully completed our first trade on the GTM Marketplace, matching a Generator and a RES for August through December Luzon Around the Clock (RTC). This achievement represents a significant milestone for the Philippines Electricity Market and we are honored to be the first and only marketplace to arrange a financially settled CFD for Philippines Energy.

Simply put, the goal of an Electricity Supplier is to maximize the return of their asset — the generation plant.

To do this, they want the plant to run for as long and consistently as possible. They also want to be able to sell everything they produce at a good price.

So how can a business-to-business platform that facilitates the forward hedging of electricity prices help maximize returns?

Green Tiger Markets is excited to announce the Beta software release of its proprietary software platform.

GTM is a Business to Business platform that facilitates the forward hedging of electricity on a financial basis by matching platform participants who have opposing price risk management needs.

Participants (who are either “buyers” or “sellers”) enter into forward contracts with other participants (who are either “sellers” or “buyers”). GTM provides matching services, reports market and transaction data, and calculates amounts payable or receivable between parties for transactions entered into on the GTM platform.

Green Tiger Markets (GTM) today announced the launch of its pilot for its derivative marketplace platform. The pilot marketplace will allow business participants to buy and sell forward contracts for Philippines energy to hedge their price risk exposure in a simulated, “test trade” environment.

Singapore: Green Tiger Markets Pte Ltd (GTM) today announced its partnership with SSY Futures Ltd to act as the exclusive broker to its leading-edge, over-the-counter electricity marketplace for Philippines and Singapore electricity forwards.

Green Tiger Markets Pte Ltd and Project School Textblast launched the Bulig Financial Literacy Course for Year 12 students yesterday. Students from 20 public schools on Mindanao island of the Philippines will receive training through SMS and online videos on the key principles to managing personal finances. The program launched at Koronadal National High School in Koronadal City.

Green Tiger Markets, or GTM, created this video as an overview of the benefits of a forward market for electricity in the Philippines can help large industrial and commercial consumers by reducing the uncertainty of future electricity expenses and freeing up capital for growth.