Tycoon Calls for Development of Conventional Power Plants Amid Electricity Supply Issues
MANILA, Philippines — In light of the recent electricity supply shortage in Luzon and the Visayas, Manuel V. Pangilinan, the chair and chief executive of power distributor Manila Electric Co. (Meralco), has expressed his willingness to develop conventional power plants, including those running on coal.
During Meralco’s financial briefing on Monday, Pangilinan emphasized the importance of building “more capable” power plants and injecting “more capacities” into the system to avoid the type of situations currently being experienced.
The Department of Energy has maintained a moratorium on new coal-fired power plants since 2020, but Pangilinan highlighted the need for guidance on whether to invest in coal or natural gas for future power generation.
Pangilinan acknowledged the criticism that may come with turning to coal as an energy source, noting that while coal is the cheapest option, it is also the least sustainable. He suggested that gas could be a compromise choice, being less emission-laden than coal but more expensive.
As the country faces increasing demand for electricity, Pangilinan stressed the importance of traditional power plants in meeting these needs. He noted that conventional plants powered by coal or gas have larger capacities compared to plants utilizing clean energy sources.
These statements come as the National Grid Corp. of the Philippines (NGCP) issued yellow alerts in Luzon and the Visayas due to insufficient operating margins. Several power plants in the region have been offline or generating lower output, contributing to the strain on the power supply.
Unit 1 of the Mahanagdong geothermal plant in Leyte experienced an unplanned outage in the Visayas, while the Mindanao-Visayas interconnection project saw a decrease in power sharing due to reduced output from a coal-fired power plant in Lanao Del Norte.
The ongoing challenges in the power sector highlight the urgency of addressing the country’s energy needs and ensuring a reliable and sustainable power supply for the future.
