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Power demand in Western Visayas is on track to surge by nearly 50% by 2029, driven by rapid economic and infrastructure growth. According to the Regional Development Plan for 2023-2028, energy requirements are expected to increase from 645 megawatts (MW) in 2019 to 953 MW within a decade.
The Regional Development Council 6 (RDC-6) flagged a looming energy shortfall, citing Department of Energy (DOE) data that shows uncontracted power demand could soar from 173.5 MW in 2020 to over 750 MW by 2029. With major growth hubs like Iloilo, Bacolod, and Boracay rapidly expanding, officials warn that existing plants and substations may struggle to keep up.
“This means that there is a supply deficit in the region, especially during evening peak demand,” the council stated.
To address the looming power gap, the council is pushing for a shift to renewable energy (RE), framing it as a path to both resilience and sustainability. They argue that accelerating the clean energy transition will not only ease supply pressures but also expand access to affordable, low-carbon power for homes and businesses.
(Also read: Cebu to Host MGen’s New 49-MW BESS)
Can the grid handle the RE push?
In January 2024, Sharon Garin, then DOE Undersecretary and now the agency’s Secretary, revealed that at least 13 transmission projects in Western Visayas were delayed multiple times. She warned that the setbacks, involving the National Grid Corporation of the Philippines (NGCP), could undermine the region’s ability to meet growing power demand.
The statement came just weeks after a massive three-day blackout crippled Panay Island in early January, following the simultaneous failure of several major coal plants. Iloilo alone lost an estimated ₱3.8 billion in economic activity, according to Governor Arthur Defensor Jr.
Upon investigation, it was revealed that the blackout was caused by an internal fault at a key coal plant, followed by the shutdown of another unit undergoing maintenance. The simultaneous failures led to voltage imbalances that cascaded through the grid. Officials also cited the lack of protective protocols and delayed action from the NGCP as factors that intensified the crisis.
“If the grid continues to be weak and vulnerable, the blackout will happen as a matter of natural course,” noted Defensor.
In March 2025, after repeated delays, the long-awaited 230 kilovolt (kV) Cebu-Negros-Panay Backbone Project was finally completed. Originally slated for completion in December 2020, the project now boosts transmission capacity by 400 MW for Panay and 500 MW for Negros on top of existing committed generation.
To prepare for surging power demand and the entry of new generation, Western Visayas is prioritizing major grid upgrades. A new 230 kV submarine cable and expanded transmission corridors between Iloilo and Negros are in the pipeline, aimed at cutting system losses, improving distribution efficiency, and lowering electricity costs for consumers across Panay, Negros, and Cebu.
But the full impact of these developments has yet to be felt.
According to National Electrification Administration (NEA) Chief Antonio Mariano Almeda, electric cooperatives (ECs) in Western Visayas are being urged to tap renewable energy sources through supply deals with RE producers. But despite the push, weak grid infrastructure continues to stand in the way, limiting the region’s transition to cheaper and greener electricity.
“RE can bring down the cost, but the big question there is whether the grid is ready for the entry of so many RE within the system,” he explained.
Almeda cited the January 2024 blackout in Panay as a stark reminder of the grid’s fragility. “A lot of REs are hooked up in the grid, and the grid was not ready to accommodate all fluctuations caused by RE plants, and it gave way,” he noted.
Almeda also warned that Panay Island remains a weak link in the Visayas grid, hampered by congestion and limited transmission capacity. As the last stop in the regional network and connected to Negros by only a low-capacity submarine cable, Panay struggles to import surplus RE or export its own due to bottlenecks that restrict power flow between islands.
Still, Almeda remain hopeful that the completion of the Cebu-Negros-Panay Backbone Project would ease grid constraints and support wider integration of renewables.
(Also read: MORE Power Secures 6.6 MW Solar Boost in New Renewable Deal)
Challenges of Western Visayas ECs
In 2023, business leaders, local officials, and ECs in Western Visayas issued a united call for a more reliable and sustainable power supply, following days-long blackouts that hit Panay and Guimaras in late April.
In a joint statement, they stressed the toll on both economic activity and public health, noting that “our families have suffered tremendously, especially our senior citizens and those with co-morbidities.”
However, power supply wasn’t the only threat to Western Visayas’ energy security. A deeper issue lies in the region’s outdated power distribution network, held back by years of underinvestment from ECs.
A report by the Iloilo-based Institute of Contemporary Economics (ICE) warned that these cooperatives, which serve more than 785,000 customers across Panay and Guimaras, have used only 22.6% of their ₱10.52-billion capital budget between 2022 and September 2024. Most spend a mere 3% of their funds on infrastructure, just enough to keep things running, but far from enough to future-proof the grid.
ICE raised serious concerns about the cooperatives’ readiness to meet mounting challenges—from climate threats to modern service expectations. With renewables gaining ground and the energy landscape shifting rapidly, Panay and Guimaras’ power system risks being outpaced.
Even the RDC‑6 flagged the struggles of its ECs, warning they suffer from “low absorptive capacity” in addressing the energy transition and security demands. The council pointed to aging infrastructure, tight finances, regulatory delays, and opaque capital expenditure approval processes as key constraints. It urged these utilities to modernize quickly, warning that without upgrades, they could fall behind consumer needs and global energy trends.
Meanwhile, the NEA filed criminal complaints against officials of three ECs in Luzon and Mindanao over alleged fund misuse and mismanagement.
In Western Visayas, no such cases are pending. Almeda said minor violations were resolved, mostly involving failure to follow agency rules.
Bottom Line
Ultimately, Western Visayas’ push toward cleaner energy will only succeed if the supporting infrastructure and institutions are truly ready. Building capacity for more renewable generation is not enough. Transmission lines must be upgraded, and ECs must modernize their systems and governance to keep pace.
As Eduardo Araral, associate professor at the Lee Kuan Yew School of Public Policy, argued during the 6th Paderanga‑Varela Memorial Lecture, “The [power] grid is not yet ready,” cautioning that accelerating renewables faster than grid upgrades could leave the system bloated with unusable capacity.
He emphasized a pragmatic approach: “We should not rush to it and abandon our legacy [fuels]…simply because we want to be green,” he stated, highlighting that the country should prioritize energy security and affordability over decarbonization in the short term.
Sources:
https://www.panaynews.net/wv-power-demand-up-by-953-mw-in-2029/
https://www.philstar.com/headlines/2024/01/04/2323309/massive-power-outage-hits-western-visayas
https://www.facebook.com/watch/live/?ref=watch_permalink&v=1676235962922048