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Power supply remained tight in the Visayas as Cebu faced another red alert on Aug. 24, raising concerns over the grid’s ability to meet evening peak demand.
The warning came after a week of repeated alerts. The Visayas saw yellow alerts on most days from Aug. 16 to 24, while red alerts were raised on Aug. 17, 18, 19 and 24, according to the National Grid Corp. of the Philippines (NGCP).
A red alert signals that the grid does not have enough available power to meet demand and maintain its required reserve, making widespread or scheduled outages possible. A yellow alert means supply can still cover demand, but the safety buffer has fallen below the required level, increasing the risk of rotational interruptions.
The Visayas’ recurring power alerts expose a fundamental weakness in the region’s energy system: there is not enough reliable generation to keep pace with demand.
(Also read: ERC Intervention Opens Door To Lower Visayas Power Rates, Refunds)
Cebu’s Economy at Risk
Central Visayas remained the largest regional economy outside Metro Manila in 2025, expanding 3.7% to ₱1.32 trillion despite trade pressures and natural disasters. But recurring power supply constraints could undermine that growth, underscoring the need for sustained investment and long-term energy planning.
For households and businesses in Cebu, unreliable power can mean spoiled goods, disrupted production, delayed services, and higher operating costs. Business groups have warned that prolonged instability could add to inflationary pressures and weaken Cebu’s appeal as an investment destination.
“At this point, the focus should be on solutions. We already know the challenge before us: demand is growing faster than available power supply,” stated Talisay Chamber of Commerce and Industry President Carl Cabusas. “Government and industry stakeholders should work together to accelerate power generation projects, strengthen transmission infrastructure, and ensure adequate capacity for the future.”
Meanwhile, Cebu Gov. Pamela Baricuatro called for stronger power infrastructure as rising electricity demand threatens to outpace the province’s supply. Pointing to the yellow alerts recorded in recent months, she said, “As our economy grows and the electricity demand continues to increase, we must also strengthen the systems that keep our homes, businesses, hospitals, schools, and industries running.”
With the region playing an increasingly important role in the national economy, stakeholders stress the need for coordinated, long-term energy planning to secure reliable power before supply shortages become a persistent problem.
Reliable Power: A Necessity for Growth
The Visayas has more than 20 solar plants with nearly 800 megawatts (MW) of combined capacity, but NGCP senior supervisor Amado Otarra III highlighted that solar alone cannot guarantee grid reliability. He noted that solar output peaks around noon before declining sharply and reaching zero after sunset, when evening electricity demand rises.
“Solar plants are not able to deliver the same amount of energy as conventional plants that operate 24 hours a day,” he explained. “A solar plant has a capacity factor of only about 16 percent. That means for every 100 MW of installed capacity, only around 16 MW can be relied upon consistently.”
Sudden cloud cover can also quickly cut solar generation, leaving grid operators to manage sharp swings in supply while keeping the system’s frequency and stability within safe levels. “Infusing more solar plants without any corresponding plants to supplement them will become a very big challenge to the stability of the grid,” he added.
Battery energy storage systems (BESS) are also emerging as a solution to help manage the growing share of renewable energy and strengthen grid reliability. Cebu is adding storage capacity, with a 60-MW BESS breaking ground in Naga City in July and the first 25-MW phase of a project in Toledo City energized in May.
The Department of Energy (DOE) has also directed NGCP to integrate about 250 MW of battery storage across Iloilo, Negros, Cebu and Leyte to help balance the grid.
“Because if these projects proceed and the batteries continue, at the minimum, there will be 50 percent less yellow and red alerts in Visayas,” said DOE Secretary Sharon Garin.
NGCP is also expanding the grid through a new 230-kilovolt Cebu-Lapu-Lapu transmission line and substation. The projects are expected to strengthen power delivery to Metro Cebu and Mactan Island while creating room for additional renewable energy capacity.
However, these upgrades alone may not solve the underlying problem: the need for sufficient, reliable baseload generation to provide a stable foundation for the grid.
Energy authorities are also looking to the return of coal-fired plants as a key near-term relief for the Visayas power crunch, with the units expected to resume operations within two weeks. These are the 169-MW (MW) Unit 2 of Therma Visayas Inc. (TVI) and the 105-MW Unit 2 of Kepco SPC Power Corp.
TVI’s 169-MW Unit 1 and Cebu Energy Development Corp.’s 82-MW Unit 1 are also expected to resume operations by September, bringing additional capacity back to the Visayas grid.
How critical is baseload to the Visayas’ energy security? DOE Undersecretary Mario Marasigan, in a radio interview, underscored the continuing importance of coal-fired power plants in meeting the region’s electricity needs and easing its supply constraints.
“Ang nagdidikta ng capacity natin sa Visayas ay ‘yung malalaki nating planta na conventional, ‘yung mga coal facilities. ‘Yun po talaga ang inaasahan natin. Marami po tayong solar, lalo na po sa Negros pero ‘yun ay available lang during daytime. Sa gabi naman po nangyayari ang ating yellow and red alerts,” he pointed out. (The capacity in the Visayas is largely determined by our big conventional plants, especially coal facilities. These are what we really rely on. We have many solar plants, especially in Negros, but they are only available during daytime. Yellow and red alerts usually occur at night.)
Marasigan also explained that some plants were on outage because they were undergoing scheduled repairs and maintenance, which had been deferred or extended to meet the Visayas’ urgent power needs. Their prolonged operation had increased the need to take the units offline for proper maintenance.
Otarra echoed this sentiment, saying, “We really need baseload plants to supplement and establish grid stability.”
(Also read: Barotac Viejo Solar Project To Power 136,000 Homes Upon 2027 Completion)
Long-Term Solutions Needed
For the Visayas, the challenge now extends to ensuring that new power, storage, and transmission projects are completed and connected to the grid before demand outpaces supply.
The province is moving toward a more coordinated approach. At the PowerForward Visayas forum in April, Baricuatro announced plans to develop a Provincial Energy Master Plan to guide its long-term power needs.
“The Province of Cebu will develop a Provincial Energy Master Plan that integrates national direction, local priorities and private sector initiatives,” she said. The plan is intended to make the region “energy-secure, climate-resilient and future-ready.”
Meanwhile, as more solar and wind projects come online, NGCP AVP and Public Relations Department Head Atty. Cynthia Perez-Alabanza said the growth in renewable capacity must be matched by stronger transmission infrastructure to maintain grid reliability.
“The incoming solar and wind projects are good,” she noted. “But from a reliability perspective, we need to prepare the infrastructure better.”
At a House of Representatives hearing in May, NGCP President and CEO Anthony Almeda urged a long-term, industry-wide approach to energy planning, centered on three priorities: adequate non-intermittent baseload capacity, a diverse and geographically distributed power mix, and planning based on resource adequacy to ensure the grid can reliably meet demand.
“The Visayas dependency on power imported from Luzon and Mindanao must also be addressed as inter-island resource sharing must only be a supplemental measure,” he stressed. “These factors, in our view, highlight one thing: we need more baseload supply. Otherwise, red alerts will continue to be a regular occurrence.”
Energy security cannot be built around a single technology. Renewables, firm generation, battery storage and transmission each have a role, but they cannot substitute for one another. A reliable grid needs enough capacity to produce power when it is needed—not only when conditions are favorable.
For the Visayas, that means building a balanced energy system with reliable baseload at its core, backed by renewables, storage and stronger transmission. The priority is not choosing one technology over another, but ensuring there is enough firm power to keep the lights on as demand and the economy continue to grow.
Sources:
https://www.sunstar.com.ph/cebu/cebu-faces-renewed-power-supply-crunch
https://www.sunstar.com.ph/cebu/doe-eyes-relief-for-visayas-grid