Philippines’ transmission and distribution sector may struggle to keep up with growing power sector

This comes as power outages are experienced in Luzon. 

The Philippines’ rapidly growing power sector could pose a challenge to its transmission and distribution (T&D) sector, BMI Country Risk & Industry Analysis reported.

This concern stems from the power outages experienced in Luzon last May after a transmission line connecting  the 618-megawatt coal-fired Masinloc power plant malfunctioned. 

Apart from this, the Luzon grid network was also placed on red alert from 2 pm to 4 pm and 7pm to 8 pm, which the Department of Energy explained as an indication of demand surpassing supply. 

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“We believe that this signals the growing power consumption that the market is experiencing, which requires more power-generating capacity,” BMI noted.

“This expansion is expected as per the factors stated in our views above. However, for new power projects to be integrated into the grid, the transmission network will have to expand in tandem with the market's developments.”

BMI added the market can alleviate these risks with government plans to expand the network, such as the Mindanao-VIsayas Interconnection Project.

“The NGCP is aiming to complete the project by end-June 2023, with the DOE expecting completion by July 2023, either way, it will allow for greater connectivity throughout the market,” the report also noted. 

“Additionally, NGCP expects to commission the Cebu-Negros-Panay interconnection project by end-June 2023.”