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Department of Energy (DOE) Secretary Sharon Garin ordered the National Grid Corporation of the Philippines (NGCP), generation companies, and other industry stakeholders to accelerate the restoration of affected transmission lines and generating units following recent yellow and red alerts in the Visayas grid.
A series of transmission and generation outages, coupled with elevated electricity demand, forced the Visayas grid into yellow and red alert status on July 8 and 9. The disruptions included the tripping of the Iloilo-PEDC 138-kilovolt (kV) Line 3, which isolated Unit 3 of the Panay Energy Development Corporation (PEDC) coal plant, the emergency shutdown of the 135-megawatt (MW) Palm Concepcion Power Corp. (PCPC) coal-fired power plant in Iloilo, and the continued outage of two 169-MW units of Therma Visayas Inc. (TVI). The Lapu-Lapu–Basak 69-kV transmission line also tripped the same day, further straining the grid.
Together, these outages pushed the Visayas grid into a negative power reserve, with available capacity of 2,561 MW falling short of the projected peak demand of 2,568 MW by 7 MW.
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The Need for Long-Term Fixes
Previously, the DOE announced it was pursuing short-term measures to bolster electricity supply in the Visayas, including a 70-MW bunker-fueled barge, a 50-MW natural gas-fired barge, a 20-MW modular diesel facility, and at least 20 MW of additional battery storage capacity (BESS).
DOE Usec. Mario Marasigan also mentioned additional relief is expected from about 69 MW of renewable energy (RE) projects scheduled to enter service in the near term. He also noted that the Mindanao–Visayas Interconnection is already operating at its full 450-MW transfer capacity, providing added support to the region’s power supply.
Meanwhile, the Energy Regulatory Commission (ERC) said it is preparing possible penalties for Visayas-based generation companies whose prolonged plant outages have contributed to recurring yellow alerts and strained regional power supply. ERC Chairperson Francis Saturnino Juan disclosed that the commission plans to issue show-cause orders before year-end, requiring affected firms to explain the extended shutdowns.
However, Marasigan clarified in a radio interview that the plant’s extended outages were linked to scheduled repairs and maintenance that could no longer be deferred amid the region’s power situation. As a result, some of the plants had been running beyond their normal operating limits, making maintenance essential to restore reliability and prevent further disruptions.
The need for adequate maintenance windows was also raised by the DOE in the past. In 2024, then Secretary Raphael Lotilla called for a review of power plant maintenance limits, noting that longer outage periods could allow more thorough inspections and strengthen long-term grid reliability. He cited Japan’s practice of tailoring maintenance schedules based on plant technology to ensure proper upkeep and efficiency.
Regarding possible fines for generation companies, Juan acknowledged that while the ERC has the authority to penalize firms that breach regulatory requirements, enforcement must be balanced with the Visayas’ tight power supply situation, as taking additional capacity offline could further strain grid reliability.
“We can only issue fines,” he admitted. “We cannot close them down because we’re already lacking power supply. We cannot revoke their licenses, because we’re already looking for power.”
Can Renewable Energy Save Visayas?
RE advocates have called for faster solar and wind development in the Visayas, arguing that the failure of baseload plants exposes the risks of relying on traditional power sources. However, questions remain on whether renewables alone can provide the reliability needed to address the region’s supply challenges.
Jake Maderazo, an opinion writer for the Philippine Daily Inquirer, examined plant performance data to provide context. The Independent Electricity Market Operator of the Philippines (IEMOP) defines availability factor as the portion of a plant’s capacity ready for operation, while capacity factor measures actual output against its maximum potential generation.
From 2024 to 2025, solar and wind facilities in the Visayas recorded significantly lower performance factors of “18-19% due to solar’s intermittent nature. Visayas wind power plants, on the other hand, had 22-23% average availability and capacity factors in the same period.”
Coal-fired plants, meanwhile, showed higher and more consistent output, with average availability factors of 86% to 88% and capacity factors of 61% to 64% during the same period.
“In other words, coal has consistently been more available and more efficient in producing power for the Visayas in the span of two years,” noted Maderazo. “That’s why it’s considered a baseload power plant capacity.”
Additionally, the Negros Island Region, the country’s fourth-largest island group, highlights the challenges of relying on local renewable resources alone. Despite hosting solar, geothermal, biomass, and hydro facilities, more than 70% of the electricity supplied to consumers still comes from coal and diesel-based generation.
Marasigan also pointed out that the Visayas’ supply constraints were also affected by lower output from renewable sources. Biomass plants have scaled back operations due to limited feedstock availability outside the sugarcane milling season, while hydropower facilities produced less electricity as declining water levels during the dry season reduced generation capacity.
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Why Baseload Power Remains Essential
The Visayas’ power challenges are largely rooted in its limited local generation capacity, leaving the region dependent on support from neighboring grids. Current interconnections allow Luzon to transmit up to 250 MW and Mindanao up to 450 MW to help meet demand.
But relying heavily on imported electricity comes with risks, particularly when supplying regions experience their own disruptions. A recent earthquake in Mindanao reduced its capacity to assist the Visayas, while damage to the submarine cable linking Negros and Cebu during dredging activities demonstrated how inter-island transmission can be unexpectedly interrupted. These incidents underscore the vulnerability of depending on imported power.
Expanding transmission capacity from Luzon and Mindanao to the Visayas would help improve grid reliability, but such projects are often delayed, and submarine transmission infrastructure is costly to build and maintain. The prolonged completion of the Mindanao-Visayas Interconnection Project illustrates these challenges.
Meanwhile, incidents such as damage to the submarine cable connecting Negros and Cebu during dredging activities show that inter-island transfers can face unexpected disruptions. Given these constraints, the case for embedded generation becomes even stronger, offering a faster and more resilient way to meet the Visayas’ growing electricity demand.
Maderazo asserted that the Visayas needs dependable, dispatchable power sources capable of providing consistent supply throughout the year. “Baseload is critically important to investors since demand for electricity from factories, computers, and the digital infrastructure, commercial and residential real estate, and fleets of electric vehicles does not stop,” he wrote. “Electric power is simply the fundamental backbone of the entire economy.”
Vince Socco of BusinessWorld echoed the same view, saying that stronger economic growth will require a significant expansion of the country’s power capacity. He emphasized the need for greater investment in baseload generation, along with more efficient transmission infrastructure to support rising electricity demand and help manage costs.
“The recent bout of power failures has thrown an added burden on businesses, especially manufacturers,” he wrote. “Alternatively, companies need to resort to investing in backup power supplies like generators or solar power (and storage). This is an added cost that, in turn, increases production costs.”
High electricity costs could also weaken the Philippines’ appeal to foreign investors, particularly as companies compare locations across Southeast Asia. Neighboring economies such as Malaysia, Vietnam, and Indonesia not only offer lower power rates but also record higher electricity generation per capita, at 6,381 kWh, 2,997 kWh, and 1,332 kWh, respectively, compared with the Philippines’ 1,151 kWh. These advantages are partly supported by greater energy self-sufficiency and, in some cases, government-backed subsidies that help keep electricity costs more competitive.
“If I were a foreign investor looking to establish a business in Southeast Asia, the power situation in the Philippines, specifically in Visayas, might be enough to make me think about some place else,” declared Maderazo.
If the Visayas, and the Philippines as a whole, fail to strengthen the power sector and build enough generation capacity to keep pace with an increasingly electrified economy, the consequences could extend beyond periodic grid alerts.
Supply constraints could slow industrial growth, weaken investor confidence, and limit the country’s ability to compete in a region where reliable and affordable electricity is becoming a key economic advantage. The challenge ahead is not simply adding more megawatts, but building a power system capable of supporting the country’s long-term ambitions.
Sources:
https://insiderph.com/doe-orders-urgent-action-to-stabilize-visayas-power-grid
https://www.pna.gov.ph/articles/1279023
https://mb.com.ph/2026/06/03/doe-visayas-re-surplus-fails-to-prevent-threat-of-rotating-brownouts
https://mb.com.ph/2026/06/29/erc-ready-to-penalize-gencos-over-chronic-outages-in-visayas
https://www.youtube.com/watch?v=BRLbl0yJ7L4
https://opinion.inquirer.net/192970/the-critical-deficit-of-baseload-power-in-visayas
https://www.linkedin.com/pulse/pumped-hydro-storage-vs-battery-energy-system-prakash-chaganty-lmdnc
https://bworldonline.com/velocity/2026/05/25/751568/electric-power-to-the-people/