Electricity is not simply a commodity. It is the lifeblood of any society. It powers the simplest of tasks to the grandest societal advancements, making it indispensable. Seeing that we are in a world in constant motion, it follows that power demand will vary over time; from over the course of a day, to the course of a year, and even through the course of decades.

Electricity demand is rising

While it varies during the course of different periods, overall the whole pie is growing. Last year, global electricity demand grew by 4.3%, reflecting growing access to electricity-intensive appliances like airconditioners, and rising consumption from manufacturing, digitalization, electric vehicles, data centers, and artificial intelligence or A.I. From 2025-2027, global power consumption is forecasted to grow even further by 3.9%, as per the International Energy Agency, with emerging and developing economies once again expected to account for most of the demand growth.

In the Philippine Energy Plan 2023-2050, the Department of Energy (DOE) projects total electricity sales in the country to expand by more than four times its 2022 level of 91.3 terawatt-hours to over 400 terawatt-hours by 2050. Accordingly, more than 70% of electricity sales is seen to come from Luzon, seeing how the bulk of economic activity is concentrated in the island. Nonetheless, it is the Visayas which is expected to grow its electricity sales the fastest at an average of 6.16% annually from 2022 to 2050, outpacing the country average of 5.49%.

We are already starting to see this, with the Central Visayan economy posting the fastest growth among all the other regions at 7.3% in 2024. Economic expansion in the Negros Island Region (5.9%) and Eastern Visayas (6.2%) also outpaced the national level growth rate of 5.7% in the same period.

Wanted: an energy system that can rise to the challenge

As a country’s power demand expands, it becomes more and more apparent that it will need an energy system — from generation, transmission to distribution — that can rise to the challenge. After all, sustaining the growth and progress of many key regions will depend on a reliable, sufficient, and dependable power supply and network. Beyond just meeting present demand, the energy system should also demonstrate the capacity to grow and be in lock step with future aspirations so as to to attract and accommodate more investments, economic growth, and development.

In the Philippines, total installed capacity as of March 2025 stood at 30.479 gigawatts. An additional generating capacity of 122.7 gigawatts is needed by 2050, as projected by the DOE, to secure the country’s growing energy needs. The whole electricity supply chain would have to be resilient as they are subject to stresses, including but not limited to the variability of weather, seasons, and climate cycles. The Philippines has the misfortune of being highly vulnerable to the impacts of climate change or natural disasters, even when it is not materially responsible (whether historically or at present) for the greenhouse gas emissions that influence climate change. This factor has to be taken into account by both the power producers and the stewards of the power networks.

Globally, the International Energy Agency said that 80% of the growth in electricity generation came from renewable energy (RE) sources and nuclear power. At the same time, there is a growing demand for natural gas, particularly from the emerging and developing economies in Asia.

This is mirrored in the Philippines’ strategies of significantly expanding its RE share to 35% by 2030, integrating natural gas as a transition fuel, and adding nuclear capacities starting in the 2030s. In the next five years, over 19,000 megawatts (MW) of committed power projects are targeted for commercial operations. This year, the DOE said that it expects around 6,841 MW of additional capacity, with over 70% of it coming from RE sources.

On a closer look, the Philippines’ recent third Green Energy Auction (GEA) secured 550 MW and 6,950 MW of committed RE installation capacity from impounding hydro projects and pumped-storage hydropower, respectively. Prior to that, GEA-1 secured 1,966.93 MW, while GEA-2 had 3,580.76 MW, led by commitments to ground-mounted solar and onshore wind.

A portfolio that maximizes both variable and dispatchable power generation

Given the current trajectory of power demand in the Philippines and considering the influx of more variable generation technologies, dispatchable energy generation is important to ensure power quality, grid stability, and continuity of electricity supply. With the likes of fuel-based power generation like coal or natural gas, it can generate power regardless of weather conditions so long as there is available fuel.

On our part, AboitizPower has energized the first 500 MW of RE projects under its growth strategy, with its most recent being the 173 megawatt peak (MWp) Calatrava Solar Project in Negros Occidental and the 45-MWp Armenia Solar Project in Tarlac. AboitizPower still seeks to increase its RE assets from indigenous energy sources such as solar, hydro, geothermal, and wind, as well as boost its energy storage builds.

To also help address the need for dispatchable energy, AboitizPower acquired a minority stake in an LNG import and regasification terminal and two gas-fired power plants in Batangas, which has a full capacity of 2,500 MW. It also continues to operate its thermal power plants efficiently to support the country’s baseload and peak energy demands.

About the author

Suiee Suarez is the Vice President for Corporate Affairs of Aboitiz Power Corporation. He is responsible for driving the AboitizPower brand, corporate communications, sustainability, and public relations functions.

Prior to joining AboitizPower, Suiee had 25 years of experience in communications, corporate social responsibility, commercial oil products businesses, stakeholder relations, and project management. He was also the Global Campaign Manager for the Future of Energy and Projects for Shell International B.V., where he also served as a member of the Shell Scenario team. He led scenario studies on urbanization in the Philippines, Indonesia and India.

Suiee holds a Bachelor’s degree in Industrial Engineering from the University of the Philippines Diliman, and currently serves on the board of directors of the UP Industrial Engineering Alumni Association. He also completed certification courses on Global Cities: Governance, Planning and Design, and Climate Change from the London School of Economics.