Power Crisis Demands Action

The recent findings from the Institute of Contemporary Economics have thrown a stark light on the precarious state of Iloilo and Western Visayas’ power infrastructure. With the region grappling with significant power blackouts in January 2024 and April 2023, it is evident that the steps taken so far are insufficient to prevent future occurrences. Despite some improvements, the report highlights a need for urgent, multifaceted solutions to ensure a stable and reliable power supply.

The completion of the Cebu-Negros-Panay (CNP) backbone project, which reduced the probability of blackouts, was a step in the right direction. However, it is far from a comprehensive solution. The existing infrastructure, particularly the 138KV transmission lines emanating from the Barotac Viejo substation, significantly limits the power that can be transmitted. Upgrading this substation is critical to maximize the potential of the CNP line and ensure the consistent delivery of power to the region.

Panay Island’s power generation is also heavily reliant on intermittent renewable energy sources, which are inherently unstable. With 100 MW of local generating capacity coming from these sources, the grid’s reliability is compromised during periods when these sources are unavailable. Diversifying the energy mix is essential to mitigate this risk and ensure a dependable power supply.

The rapid economic growth in Iloilo has led to a surge in power demand, with a compounded annual growth rate of 18.5% between 2020 and 2023. While the current installed generating capacity on Panay is 821 MW, only 714 MW is dependable. This slim margin between supply and demand leaves little room for error and poses a significant risk to future economic growth.

To address these issues, a combination of short-term and long-term measures is required:

1. Immediate Infrastructure Upgrades: The National Grid Corporation of the Philippines (NGCP) must prioritize the upgrade of the Barotac Viejo substation to 230KV to fully utilize the CNP transmission capacity. This upgrade will enhance the reliability and stability of the power supply.
2. Diversification of Energy Sources: While renewable energy should continue to be a part of the energy mix, it cannot be the sole reliance. Exploring and investing in other baseload power generation options such as natural gas and nuclear energy is crucial. Given the ban on new fossil-fuel plants, these alternatives present viable solutions for sustainable and reliable power generation.
3. Investment in On-Island Generation: There is an urgent need to build new power generation facilities on Panay Island. The committed projects, with a total generating capacity of 410 MW, should be fast-tracked to ensure timely completion. Additionally, continuous investment in local power plants will provide a buffer against demand surges and unforeseen outages.
4. Enhancing Grid Management: Improving the management of the power grid to reduce transmission losses and enhance efficiency is essential. This includes adopting advanced technologies and best practices in grid management to ensure optimal performance and minimal disruption.

The power crisis in Iloilo and Western Visayas is a complex issue that requires immediate and strategic action.

Without decisive steps to upgrade infrastructure, diversify energy sources, and invest in new generation capacities, the region’s economic growth and quality of life will be severely impacted.

It is imperative for stakeholders, including the government, NGCP, and private investors, to collaborate and implement these solutions swiftly to secure a stable and prosperous future for Iloilo and the entire Western Visayas.