DOE pins hope on battery system to ease Visayas power shortage

BATTERY Energy Storage Systems (BESS) will help reduce red and yellow alerts in Visayas, the Department of Energy (DOE) said Monday.

On Monday afternoon, the National Grid Corporation of the Philippines (NGCP) placed the Visayas power grid on red alert from 5:00 pm to 8:00 pm and yellow alert from 2:00 pm to 5:00 pm and from 8:00 pm to 10 pm.

A red alert status is issued when power supply is insufficient to meet consumer demand and the transmission grid’s regulating requirement.

The yellow alert is issued when the operating margin is insufficient to meet the transmission grid’s contingency requirement.

Available capacity at the Visayas stood at 2,318 megawatts (MW) while peak demand reached 2,431MW.

There are seven power plants on forced outage this month, one plant since July, three plants since June, seven plants since May, one plant since March, three plants since 2025, two plants since 2024, two plants since 2023, and one plant since 2021, while 14 plants are running on derated capacities, for a total of 919MW unavailable to the grid.

‘The Visayas grid continues to experience tight supply conditions. From our coordination with the industry, we expect major power plants to return to service soon,’ said Energy Secretary Sharon Garin.

TVI Unit 2 (169MW) and KEPCO SPC Power Corp. (105MW) are expected to return to service within the week, followed by TVI Unit 1 (169MW) and Cebu Energy Development Corp. Unit 1 (135MW) in the coming weeks of September, providing additional capacity.

‘We also have mandated the NGCP to install about 250 megawatts of batteries….We have instructed them to connect the four power plants of batteries located in Iloilo, Negros, Cebu, and Leyte so that everything is balanced… At the minimum, 50 percent less yellow and red alerts will be in Visayas,’ she said.

These BESS are located in Leyte, Cebu, Panay, and Negros.

‘We could easily address, reduce the yellow and red alerts by installing battery energy storage system. But, in the meantime, we are continuously studying if our alert levels will continue then we have to commission as well the liquid fuels that can be easily deployed,’ Energy Undersecretary Mario Marasigan said.

At the same time, the agency is closely monitoring the developments of committed new power projects in the country. ‘We have 48 projects that are already completed, including 11 BESS with a capacity of 1,846MW… As far as what is the closest we can complete, we are looking at the 25 major power projects which we are closely monitoring… In the end, we are still looking at 10,000 MW by end of 2030,’ added Marasigan.

Meanwhile, the DOE is set to turn over a list of erring power generation companies (gencos) to the Energy Regulatory Commission (ERC) for the possible suspension of their operational permits after they snubbed the agency’s show-cause orders (SCOs).

‘We’ve given them a warning. And we are now in the process of recommending suspension to ERC,’ said Garin.

The agency issued last month 203 SCOs to power firms over plant outages. Of these 121 have snubbed the agency.

Out of the 203 SCOs, 174 were issued to on-grid power generators and the remaining to off-grid power facilities Of the 174 SCOs, 114 companies have taken no action. The remaining 60 have either responded, requested for extension, and acknowledged the SCOs.

For SCOs issued to 29 off-grid power generation firms, seven have not responded.

The issuance of SCOs were meant to give the power firms a chance to explain why no administrative or criminal action should be imposed against them for failing to submit the required reports on time.

These reportorial requirements are mandated under DOE Department Circular DC2026-02-0006, or the Policy on Accountability of Entities Engaged in Power Generation to Ensure Sufficient, Reliable, Affordable, and Secure Supply of Energy in the Country, which requires generation companies to submit Annual Self-Assessment Forms and other reportorial requirements. These submissions enable the DOE to assess the operational readiness, technical performance, and compliance of generation facilities, allowing the Department to identify potential risks early and implement timely interventions before they affect the reliability of electricity supply.

‘I can’t tell you which because I don’t have the list. Let’s say around 40, small diesel plants. Some are not even operational, around 10.

‘We’ll wait for the process. But we’ve been meeting since last week on what to do. So, the decision is to send it to ERC for proper action,’ Garin added.

She said her office afforded all concerned parties due process and every reasonable opportunity to comply but emphasized that persistent non-compliance will not be met with appropriate regulatory action.

‘Accountability is not optional. These reportorial requirements exist for one reason’ to help ensure that generation companies remain capable of delivering the reliable electricity that Filipino consumers depend on every day.

‘When companies disregard these obligations despite being given the opportunity to explain, the Department has the responsibility to act decisively to protect public interest,’ Garin said.

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