Manila: The forecasted extreme El Ni±o is not anticipated to severely affect the power supply in Luzon, as hydropower plants have benefited from recent rains caused by the southwest monsoon, known locally as 'habagat'. Independent Electricity Market Operator of the Philippines (IEMOP) vice president for trading operations, Engr. Isidro Cacho, mentioned in an online briefing that electricity supply in Luzon is expected to remain stable. This stability is attributed to the numerous hydropower plants built on the island, which are strategically located along major river systems and dams.
According to Philippines News Agency, hydropower plants in Luzon draw their water from key sources such as the Agno River, benefiting the San Roque and Magat Hydropower Plants, the Angat River for the Angat Hydroelectric Plant in Bulacan, and Caliraya Lake and Laguna de Bay for the Kalayaan Pumped-Storage Plant in Laguna. In Mindanao, the Agus-Pulangi Hydropower Complex benefits from the Agus River in Lanao del Sur, Lanao del Norte, and Bukidnon. Cacho emphasized that power supply from hydro-powered plants is anticipated to remain adequate, thereby ensuring stable prices.
Cacho projected that there would be no major impact from El Ni±o until possibly the first quarter of 2027. He expressed optimism about the power situation in Luzon, provided that the water supply in the hydro-powered plants remains sufficient. However, he noted a different scenario for the Visayas, which has experienced yellow and red alerts since summer, despite electricity imports from both the Luzon and Mindanao grids.
In recent weeks, Mindanao has also faced red alerts due to forced outages at several coal-fired power plants. IEMOP data released on Wednesday indicated that grid alerts in the Visayas and Mindanao have led to reliance on higher-priced oil-based power plants and battery-based facilities. Consequently, the average spot market price of electricity in the Visayas surged to PHP18.59/kWh for the billing period from July 26 to August 25, 2026, compared to PHP11.29/kWh in the previous period. In Mindanao, the rate rose to PHP19.56/kWh from PHP10.39/kWh in the preceding month. Conversely, in Luzon, the rate decreased to PHP4.80/kWh from PHP7.30/kWh, following a 632MW increase in supply margin.
The Visayas experienced a 2.6 percent decline in power supply to 2,201 megawatts (MW) during the said period, while demand rose to 2,094MW. In Mindanao, supply decreased by 7.3 percent to 3,045MW, with demand increasing by 5 percent to 2,195MW. Cacho mentioned that the record-high prices in the Visayas and elevated prices in Mindanao are expected to stabilize as several power plants resume operations this month.
Previously, the Department of Energy announced that Unit 1 of the Cebu Energy Development Corporation resumed operations on September 5, while Unit 1 of Therma Visayas Inc. is scheduled to return on September 15, and Unit 3 of Panay Energy Development Corporation by October 3. Additionally, Unit 2 of Therma South Inc. is set to resume on September 8, with Unit 1 following on September 19, and Unit 2 of GNPower Kauswagan by September 20. Cacho expressed confidence in the government's efforts to address these challenges, highlighting the planned use of additional battery facilities to augment supply during high-demand periods.
