Power shortages ruled out for Luzon grid in summer 2025

A group of power plant operators ensures that no power shortages are expected next year for the Luzon Grid, even during the typically critical summer months.

In a report by ABS CBN News, the Independent Electricity Market Operator of the Philippines (IEMOP) said it is anticipating stable electricity supply and does not foresee any yellow or red alerts being issued during the summer of 2025.

Yellow alerts are declared by the National Grid Corporation of the Philippines (NGCP) when power reserves dip below a certain threshold, potentially leading to rotating brownouts. Red alerts, on the other hand, are raised when supply cannot meet demand, resulting in possible outages.

A significant portion of the electricity supplied to utilities and cooperatives comes from the wholesale electricity spot market operated by IEMOP.

IEMOP spokesperson Sid Cacho stated that according to the grid operating plan if all power plants remained operational, there should be no electricity supply issues during the election season and up to election day.

In other developments, the Energy Regulatory Commission (ERC) has approved a 1,200-megawatt power supply agreement between Manila Electric Company (MERALCO) and Excellent Energy Resources Inc. (EERI), which will utilize imported natural gas.

ERC Chairperson Monalisa Dimalanta explained that the approval of the contract comes with specific conditions. While EERI initially proposed a levelized cost of electricity (LCOE) rate of Php 7.1094 per kilowatt-hour (kWh), the ERC approved a lower rate of Php 6.0038 per kWh for a 15-year term.

Consumer advocacy group Power4People criticized the approval, stating that higher fossil fuel prices would eventually burden consumers. Convenor Gerry Arances argued that renewable energy sources could provide cheaper electricity at rates Php 2 to Php 4 per kWh lower than fossil-based fuels.

Dimalanta countered that the country’s renewable energy capacity is insufficient to meet the demands of large utilities like MERALCO. She emphasized that the ERC must balance supply adequacy and environmental sustainability, especially to ensure sufficient electricity during the summer months and in the years ahead.