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Philippines electricity supply and grid instability

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2026-09-17 05:53 UTC → 2026-09-23 06:26 UTC · added ~~removed~~

The Philippines continues to face significant electricity supply instability, marked by localized cooperative failures and frequent grid alerts. To stabilize the Visayas and Mindanao grids, the Department of Energy (DOE) is coordinating the return of several generating units, including Cebu Energy Development Corporation Unit 1, which resumed operations on September 5. Legislative scrutiny has intensified. The House committee on energy is scheduled to hold a briefing on September 16 to investigate the deteriorating condition of the Visayas power grid under House Resolution 1430. Lawmakers are questioning the financial settlement of power reserves, specifically why consumers are being charged a ‘P1.04 per kilowatt hour ancillary reserve charge’ despite frequent red alerts and prolonged rotational brownouts. This follows previous reports of at least 93 yellow alerts and 30 red alerts in the Visayas between January and early September. In response to escalating supply challenges and rotational brownouts, the Regional Development Council of Western Visayas has urged the Office of the President and the DOE to declare a state of power emergency across the entire Visayas. Such a declaration aims to expedite permits for short-term solutions, including power barges and battery energy storage systems (BESS). To address high costs during shortages, the DOE has endorsed the Energy Regulatory Commission’s (ERC) implementation of a regional Secondary Price Cap (SPC). This mechanism is designed to prevent lower prices in Luzon from artificially lowering the national average. Simulations indicate this cap could have reduced August 2026 average Wholesale Electricity Spot Market (WESM) prices in the Visayas by 54% and in Mindanao by 56%. Consequently, the Independent Electricity Market Operator of the Philippines (IEMOP) has been ordered to recalculate August market settlements, with revised bills expected by September 20.

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