LUZON and Mindanao are expected to enjoy stable power conditions next year, though the Visayas could be developing an excessive dependence on the other two island grids, according to the Independent Electricity Market Operator of the Philippines (IEMOP).
In a briefing on Thursday, Isidro E. Cacho, Jr., IEMOP vice-president for trading operations, said: “When it comes to the Visayas, we’re seeing an issue because it’s now becoming dependent on Luzon and Mindanao.”
The national grid has become unified following the start of full commercial operations at the Mindanao-Visayas Interconnection Project last year. This allowed power sharing across the Luzon, Visayas, and Mindanao grids.
Mr. Cacho said that any forced outages on Luzon and Mindanao could affect power supply in the Visayas.
“The Visayas is a net importer of power from Luzon and Mindanao, so when the interconnections from Mindanao and Luzon are limited, power plants end up setting higher prices in the Visayas,” Mr. Cacho said.
For next year’s dry season, Mr. Cacho said prices on the Wholesale Electricity Spot Market (WESM) could range from P5-6 per kilowatt-hour (kWh) on Luzon and P4-5 per kWh in Mindanao.
WESM prices in the Visayas, on the other hand, could range between P6 and P7 per kWh.
Mr. Cacho said that the Department of Energy’s Grid Operation and Maintenance Program has scheduled plant maintenance in the first, third, and fourth quarters of 2026.
Planned outages are not allowed in the second quarter, during the year’s hottest months.
IEMOP operates the WESM, where energy companies can buy power if their long-term contracted power deals prove inadequate for their needs.
Last month, the average power rate in the WESM declined 12.4% to P3.98 per kWh in November. — Sheldeen Joy Talavera