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The power outlook for the Visayas has improved following the return to full operation of a major generating unit, while the National Grid Corporation of the Philippines (NGCP) is accelerating about ₱55 billion worth of transmission projects in Cebu to meet rising electricity demand and strengthen the region’s long-term grid reliability.
NGCP officials said the restoration of Panay Energy Development Corp. (PEDC) Unit 3 has eased supply pressures that triggered a series of yellow and red alerts in recent months, even as the grid operator continues to prepare for growing demand through major transmission infrastructure investments.
Improved Supply
Speaking during NGCP’s Power 101 briefing, Engr. Amado F. Otarra III, senior supervisor for Network Operations of the Visayas System Operations, said PEDC Unit 3 resumed full commercial operation on July 1, restoring 150 megawatts (MW) of capacity to the grid.
The development marked the first day since May 11 that the Visayas grid was not placed under a yellow alert, following weeks of supply shortages caused by the unplanned outage of four power plants that removed around 591 MW from the system.
“Nadagdagan tayo ng 150 megawatts. So there were no more yellow alerts issued,” Otarra said. (“We acquired an additional 150 megawatts. So there were no more yellow alerts issued.”)
He added that NGCP expects further improvements once two generating units operated by Therma Visayas Inc. (TVI) complete repairs, which are targeted by late August or September.
According to Otarra, the Department of Energy is closely coordinating with TVI management to help ensure repair schedules are completed on time.
The supply shortfall over the past several weeks forced manual load dropping and rotational power interruptions in parts of the Visayas. To reduce the likelihood of similar incidents, Otarra said the region should continue pursuing a balanced energy mix that includes both conventional baseload generation and renewable energy sources.
While the outlook has improved, NGCP officials acknowledged that future yellow alerts remain possible if major power plants experience unexpected outages or reserve levels become insufficient.
NGCP spokesperson Atty. Cynthia Alabanza also noted that electricity demand has eased with the end of the summer season, helping stabilize the grid despite lower solar generation during the rainy months.
Reinforcing The Cebu Transmission Network
Alongside improvements in power supply, NGCP is investing approximately ₱55 billion in transmission projects aimed at accommodating rapid load growth in Metro Cebu, Mandaue City, and Mactan Island.
Engr. Michael R. Baylosis, regional transmission planning senior manager, said increasing electricity consumption is pushing the existing 138-kilovolt (kV) transmission lines and underground cable system closer to their operating limits.
To address the growing demand, NGCP is constructing the ₱2.8-billion Cebu-Lapu-Lapu 230-kV Transmission Line Project and the ₱8.3-billion Lapu-Lapu 230-kV Substation Project.
The projects include new 230-kV overhead transmission lines, higher-capacity submarine cables, and additional substations in Mactan and Pusok that will significantly expand transmission capacity for the area’s long-term growth.
“This is to address the load growth in Mactan and Metro Cebu,” Baylosis said.
Both projects are scheduled for completion by December 2027.
Expanding Interconnection With Luzon
NGCP is also advancing the ₱44-billion Cebu-Leyte Interconnection Lines 3 and 4 Project, which will substantially increase electricity transfer capability between Luzon and the Visayas.
Baylosis said the project will add two 600-MW interconnections through new submarine cables, allowing greater power sharing among Luzon, Visayas, and Mindanao while supporting the integration of additional generating facilities into the national grid.
The interconnection project will be completed in three phases targeted for 2031, 2033, and 2035.
However, Baylosis said implementation continues to face hurdles, including right-of-way acquisition, route adjustments, permitting requirements, and regulatory approvals.
He appealed to local government units to help fast-track the issuance of building permits, barangay clearances, Sangguniang Panlungsod resolutions, and other required authorizations to keep construction on schedule.
NGCP said the timely completion of these projects will be critical to improving grid resilience, accommodating future demand growth, and enabling more reliable electricity delivery across Cebu and the wider Visayas.
Source:
https://www.philstar.com/the-freeman/cebu-news/2026/07/03/2539513/ngcp-invests-p55-billion
https://cebudailynews.inquirer.net/744365/grid-outlook-slight-improvement-in-visayas-power-situation