Despite delays in implementation, the multi-billion pesos Mindanao-Visayas Interconnection Project (MVIP) has effectively helped stabilize power supply amid a nationwide surge as the summer season starts, according to the Independent Electricity Market Operator of the Philippines (IEMOP).

At a press briefing on Tuesday, Chris Warren Manalo, assistant manager, of market simulation and analysis at IEMOP, revealed that market data as of 24 March indicated a stable supply averaging around 18,900 megawatts (MW).

In March, the average energy demand saw a significant jump, increasing from 12,372 MW in February to 13,185 MW. 

Notably, all regions experienced this increase, with Luzon showing a 6.1 percent rise, followed by Visayas at 6.4 percent and Mindanao at 8.4 percent. 

19% supply margin drop

Consequently, the supply margin decreased significantly, from 4,757 MW in February to 3,860 MW, representing a 19 percent drop, even though the average supply increased by 138 MW.

“In Mindanao, technically, there is no problem when it comes to their supply since the Mindanao grid has a lot of supply. So, the excess capacity helps to augment the capacity needed in the Visayas and Luzon grid,” Manalo told reporters.

“Currently, the Mindanao to Visayas grid can import up to 450 MW to Luzon,” he said.

The Luzon grid was supported by the Leyte-Luzon grid link, which added an average of 296 MW. Additionally, the MVIP contributed an average of 341 MW of exports to the Visayas region.

During the first week of March, the IEMOP reported scheduled and unexpected outages in several power plants. 

The combined planned outages, primarily from large conventional generators such as coal, natural gas, geothermal and hydroelectric plants, totaled 2,724 MW. 

During the same period, some capacities experienced forced outages totaling 1,062 MW, primarily from coal and natural gas plants.

Consequently, the average electricity price increased significantly, rising from P4.03 per kilowatt-hour (/kWh) to P5.46/kWh as of preliminary data this month. 

Regionally, the average spot price surged in Luzon from P3.97/kWh in February 2024 to P5.26/kWh in March 2024. 

Meanwhile, Visayas and Mindanao experienced price hikes of P4.58/kWh to P6.26/kWh and P3.71/kWh to P4.20/kWh, respectively.