ACEN warned of a potential power oversupply risk as renewable energy capacity rapidly expands, even as the Philippines accelerates its clean energy rollout.

The caution was raised during a media briefing following the company’s annual stockholders’ meeting, where Eric Francia, CEO of ACEN Corporation, said developers must be careful not to outpace demand.

“What we don’t want is that we’ll be building into an oversupplied system,” Francia said.

The warning comes as the Department of Energy has already awarded more than 10 gigawatts of renewable energy capacity under the Green Energy Auction Program (GEA), raising questions about how much of this pipeline will be realized and when it will actually come online.

Francia said the company is closely monitoring how demand evolves, noting that several factors could influence consumption patterns.

Higher energy prices may dampen demand and economic activity, while efficiency improvements could reduce overall electricity use. On the other hand, emerging trends such as electric vehicle adoption may drive additional demand.

This uncertainty, he said, makes it critical for developers to carefully time new investments.

ACEN said it is taking a measured approach to new solar and wind projects, prioritizing developments with clear demand visibility and stable pricing mechanisms such as government-backed auctions.

The company noted that it still has excess renewable capacity available for sale, which also factors into its decision to pace further investments.

Despite its cautious stance on new generation, ACEN identified battery energy storage as a key area for continued expansion.

Francia said storage has become increasingly cost-competitive and plays a crucial role in addressing the intermittency of renewable energy.

“Battery storage… is addressing the intermittency issue of renewables,” he explained.

The company expects a significant portion of its upcoming projects to incorporate storage, particularly in markets such as the Philippines and Australia.

ACEN said renewables remain central to its long-term strategy, especially as countries seek to reduce dependence on imported fossil fuels amid global energy uncertainties.

However, Francia emphasized that the transition must be managed carefully, with investments aligned to actual system needs.

How can the Philippines balance rapid renewable expansion with the risk of power oversupply?

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more news and updates on the Philippine energy sector.