Energy Secretary Raphael P.M. Lotilla welcomes Maharlika Investment Corporation’s (MIC) entry into the National Grid Corporation of the Philippines (NGCP), highlighting its potential to improve the country’s power sector by addressing long-standing transmission delays.
The investment aligned with the Philippine Development Plan (PDP) 2023-2028, approved by President Ferdinand Marcos Jr., which highlighted the need for government funding in transmission to improve access to low-cost electricity, enhance reliability, and mitigate market power.
“This is a step towards attaining our goal of ensuring security of supply, reliability, affordability, and promoting competition in the power sector,” Lotilla said.
The NGCP, which operated the country’s transmission grid, has been plagued by significant delays in completing its projects.
In a statement, the Department of Energy (DOE) said that between 2016 and 2024, 98% of its projects were delayed, with some delays lasting more than nine years. These setbacks have left generation plants stranded, disrupted electricity supply, and increased power rates for consumers.
For example, the delays in the Cebu-Negros-Panay 3 Project and the Mindanao-Visayas Interconnection Project not only contributed to blackouts in Panay but also hindered significant reductions in electricity rates. Had these projects been completed on time, consumers could have saved Php 1.27 to Php 2.03 per kilowatt-hour in affected regions.
Maharlika’s entry into NGCP is expected to infuse additional capital and provide strategic oversight to accelerate the completion of transmission projects. With two board seats each in NGCP and Synergy Grid & Development Philippines Inc., the government can better coordinate with the private sector to expand and interconnect the power grid efficiently.
Beyond addressing delays, the investment promises direct benefits for consumers, including reduced power outages, lower electricity prices, and improved energy security.
The Philippines’ approach mirrors global trends in government participation in transmission. For instance, the United Kingdom renationalized its transmission system operator in 2024 to enhance energy security and facilitate renewable energy integration—an example the Philippines can draw inspiration from to achieve similar goals.
With Maharlika’s involvement, the government aims to address the challenges in the power sector and deliver tangible improvements for Filipinos.
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