NGCP warns of tight supply in Luzon during summer

NGCP transmission line with sun 2

The National Grid Corporation of the Philippines (NGCP) has warned of “tight power supply” in the Luzon Grid for the summer months, which may spike electricity bills and the increase possibility of power interruptions. 

In a report by the Manila Bulletin, NGCP said that there will be “thin power supply this summer due to higher demand in 2023.” 

NGCP cited the Department of Energy (DOE) forecast where the total peak demand this year will be at around 13,125 megawatts (MW) for the Luzon Grid – which may likely occur by the third week of May. 

DOE earlier warned of 12 possible yellow alerts this year, especially during the summer months, should power plants go into forced outages. 

NGCP reiterated that thin operating margins from ancillary services are taken are also forecasted this year. 

For the Luzon Grid, NGCP said that “these are forecasted from April to June due to the historically high demand during the summer months” – as these are the months when households and commercial and industrial establishments will be using their air-conditioning and cooling systems for longer periods. 

Meanwhile, Visayas and Mindanao grids are seen to be in better positions amid the higher projected demand this year. Visayas power requirements are seen to increase by 16.19%, while Mindanao’s power demand is seen to increase by 10.52%. 

NGCP said that the maintenance schedules of power plants mandated under the Grid Operating and Maintenance Program (GOMP) were approved by the DOE last December 27, 2022, adding that “no maintenance shutdowns were scheduled during the summer months.” 

However, NGCP said that unplanned shutdowns outside the GOMP may still have a significant impact on the supply-demand profile if several power plants simultaneously shut down outside of its schedule.