How low can supply go? NGCP warns of thin reserves for summer 2023

The National Grid Corporation of the Philippines (NGCP) has warned of thin power reserves over the summer as peak power demand is expected to breach the levels recorded in 2022.

The power transmission firm owned by bilyonaryos Henry “Big Boy” Sy, Sr. and Roberto Coyiuto announced Friday that there will be tight power supply between April to June 2023 amid higher demand and a smaller increase in available capacity.

The Department of Energy (DOE) said Luzon’s peak demand will hit 13,125 MW from last year’s 12,113 MW. Forecasts are seen higher in Visayas and Mindanao at 2,691 MW and 2,395 MW, respectively.

“While base case projections show no occurrence of yellow or red alerts, there are weeks between March and April where operating margins are below required levels due to higher demand and planned outages of plants,” the NGCP said in an advisory.

“To alleviate possible power shortages, NGCP appeals to policy makers to immediately explore demand side management strategies to mitigate any possible supply issues in the coming summer months,” it added.

The DOE previously ordered the NGCP to procure its own ancillary services to provide backup power sources during periods of thin supply.