Tighter power conditions loom for Visayas

The Department of Energy (DOE) warned of tighter power supply conditions in the Visayas this year but assured consumers there will be no widespread blackouts as the power sector moves to stabilize the grid and fast-track new capacity.

In an interview with reporters on Tuesday, Energy Secretary Sharon S. Garin said supply pressures could have been avoided had delayed renewable energy projects under the first two rounds of the Green Energy Auction (GEA) been delivered on time.

The failure of several developers to complete their projects, she said, has forced the government to revise its power outlook for 2026 to 2028.

“Projections basically show that we have to catch up because of the failure of the GEA winners to deliver,” Garin said, adding that the termination of these contracts caused significant strain on the country’s power supply outlook.

Despite the challenges, Garin stressed that consumers should not expect outages, particularly during peak periods. It won’t result in a blackout, but we want to have a more stable grid,” she said.

Meanwhile, National Grid Corp. of the Philippines (NGCP) spokesperson Cynthia Alabanza said the DOE has approved the grid operating and maintenance plan, but noted that authorities have changed how power supply risks are now being assessed.

Instead of a straightforward comparison of supply and demand, Alabanza said forecasts now use a loss-of-load expectation approach, which estimates the likelihood of power interruptions.

Alabanza said electricity demand continues to climb and has already exceeded the peak demand projections previously released by the DOE.

“Yes, the demand increases every year and we have actually breached the projection by the DOE,” Alabanza said, underscoring the need for timely delivery of new power projects to ensure reliable electricity for Filipino households and businesses.

She noted that power demand rises every year, driven by population growth, expanding economic activity, and ongoing development, with the key question being how quickly consumption grows.

In a separate development, the NGCP reported that consumers will see slightly lower transmission charges in their January electric bills, as the overall rate for the December 2025 billing period fell 0.68 percent to P1.3455 per kilowatt-hour (/kWh).

The Ancillary Services rate, covering reserve power costs, is P0.5971/kWh, while NGCP’s transmission wheeling fee is P0.6058/kWh.

NGCP noted it charges only about 60 centavos per kWh for delivering electricity, with revenues capped and regulated by the Energy Regulatory Commission.

These transmission costs are billed to end-users through distribution utilities and electric cooperatives.