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The Department of Energy (DOE) is pushing for new baseload power projects on Panay Island as electricity demand continues to grow faster than the national average, raising concerns about grid stability and reserve capacity.
Energy Secretary Sharon Garin said electricity use in Iloilo is increasing by around 14% annually, more than double the national average of 6–7%. She warned that without additional baseload plants, the island’s supply could soon fall short of demand.
“Yes, we need more power plants,” Garin said. “I’m emphasizing baseload because solar cannot address steady supply needs. Solar can be gone when there’s rain—so who will provide power?”
Garin was in Iloilo City for the Renewable Energy Congress and Exhibit, where she discussed ongoing efforts to secure reliable power amid rapid economic growth.
Rising Demand Outpaces Supply
Panay Island currently relies on four baseload power plants, all coal-fired. These include three units from Panay Energy Development Corporation (PEDC) with capacities of 83 MW, 83 MW, and 150 MW, and one 135-MW unit from Palm Concepcion Power Corporation (PCPC).
“With only a few major power plants, if one breaks down, there can be a domino effect,” Garin said. “It affects the whole island, not just Iloilo.”
That scenario occurred in January 2024, when a technical issue at PEDC Unit 1 reduced in-island generation to around 310 MW against a 450-MW demand. The shortfall forced Panay to depend on the limited Negros–Panay submarine cable. The disturbance triggered automatic shutdowns at PEDC Unit 2 and PCPC, plunging the entire island into blackout.
Wider Interconnection
To strengthen the grid, the DOE is exploring more interconnections beyond Negros. Garin said discussions with the President include linking Panay to Mindoro, which could serve as an additional power reserve if connected to Luzon.
“There has to be a support reserve where we can get power. I would say it should be Mindoro, if Mindoro is connected to Luzon,” Garin noted. However, she acknowledged that such projects would be “very expensive.”
The National Grid Corporation of the Philippines (NGCP) has proposed a Mindoro–Panay 230-kilovolt Interconnection Project, linking the islands through submarine and overhead lines. Another NGCP initiative, a PHP 90.6-billion Batangas–Mindoro 500-kV project, aims to connect Mindoro with Luzon and enable power exchange with Panay, supporting renewable energy flows.
Supporting A Rising Economy
Garin said the DOE aims to secure commitments for new baseload capacity before 2028 to prevent further supply disruptions. “At a certain point, our reserves will be thinner and thinner,” she said. “We’ll try to get them to commit to finishing before 2028.”
As Panay’s economic and industrial activity continues to expand, energy officials agree that improving baseload reliability and accelerating inter-island connections will be crucial to ensuring stable, affordable electricity across Western Visayas.
Source:
https://dailyguardian.com.ph/baseload-needed-doe-panay-needs-more-plants-as-power-demand-surges/