DOE blames NGCP delays for Visayas grid yellow, red alerts

The Department of Energy (DOE) on Monday blamed delays by the National Grid Corporation of the Philippines (NGCP) for the recent yellow and red alerts in the Visayas, saying these could have been avoided had critical ancillary service contracts been completed on time.

According to the DOE, it warned the NGCP as early as May 22, 2026 that the Visayas grid needed at least 250 megawatts (MW) of additional backup reserves to keep the grid stable when power plants suddenly go offline.

The DOE said it also issued directives to the NGCP regarding the Visayas power situation on May 27, June 16, June 18, and August 13, and finally a Show Cause Order on August 13 after the NGCP failed to fully complete and execute the required agreements.

The reserves, the department said, could come from battery energy storage systems (BESS) which could quickly supply power during unexpected outages and were readily available, but the NGCP did not complete the contracts needed to place these into service.

“We saw the risk as early as May and directed NGCP to secure the necessary reserves. The batteries were there. The Visayas needed these reserves on the grid months ago. What was missing was timely execution. Delays in contracting left consumers with less protection when generating units unexpectedly went offline,” Energy Secretary Sharon Garin said in a statement.

GMA News Online has reached out to the NGCP for comment on the matter. No response has been received as of posting time.

The Visayas and Mindanao grids have been on yellow and red alerts for several days in September, the latest of which being last Monday, September 28, when peak demand came in at 2,374 megawatts against an available capacity of 2,572 MW.

“The contracting delays have implications not only for grid reliability but also for electricity costs. Firm ancillary service contracts provide committed reserves that can lessen dependence on the Reserve Market, where prices can rise sharply during periods of tight supply,” the DOE said.

Citing a simulation by the Independent Electricity Market Operator of the Philippines (IEMOP), the DOE said the timely delivery of the reserves could have prevented at least 10 red alerts and 30 red alerts, with electricity market prices averaging 12 pesos per kilowatt-hour.

“Despite the DOE’s repeated directives and coordination with NGCP to secure an affordable and reliable power system, the required connections, testing, commissioning, and completion of the AncillaryServices Procurement Agreements (ASPAs) remained pending,” the DOE said.

“These are critical steps requiring action from NGCP in its role as System Operator and transmission service provider,” it added. — BM, GMA News

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