The Manila Electric Company (MERALCO) Chairman and CEO Manuel V. Pangilinan says that traditional power plants remain a stable source of energy amidst the rising electricity demand caused by the elevated temperatures due to El Niño.
Pangilinan stressed the importance of additional dependable power capacities to cushion the risk of grid instability, considering the current scenario marked by projected yellow and red alerts due to heightened power demand.
Conventional power plants, which include coal and gas-fired facilities, are crucial for meeting the country’s energy requirements.
Pangilinan highlighted the urgency of investing in such plants to prevent grid disruptions, stating, “What the country needs are conventional, dependable power plants so we don’t have this crazy situation now.”
However, Pangilinan also acknowledged the cost-effectiveness of coal but emphasized its environmental unsustainability. He described gas as a “compromise choice,” being cleaner than coal but more expensive.
Meanwhile, the Institute for Energy Economics and Financial Analysis (IEEFA) argued that liquefied natural gas (LNG) is a costly fuel option for power generation, despite anticipated oversupply in the global market.
Over the past two weeks, the National Grid Corporation of the Philippines (NGCP) issued red and yellow alerts over the Luzon and Visayas grids, while the Mindanao grid also experienced a yellow alert due to unplanned power plant outages and heightened demand stemming from rising temperatures linked to El Niño.
