Benise Balaoing

Line men from an electrical contractor check electric meters at the Divisoria area in Manila on September 12, 2022.  The National Grid Corporation of the Philippines advised of possible power interruptions in Luzon on Monday  due to “forced outage” of 7 power plants and “derated capacities” of 3 more plants, which depleted the Luzon grid by 3,627 megawatts. 


 Jonathan Cellona, ABS-CBN News

Line men from an electrical contractor check electric meters at the Divisoria area in Manila on September 12, 2022.  The National Grid Corporation of the Philippines advised of possible power interruptions in Luzon on Monday  due to “forced outage” of 7 power plants and “derated capacities” of 3 more plants, which depleted the Luzon grid by 3,627 megawatts. 

 Jonathan Cellona, ABS-CBN News

Article (news)

LInemen check electric meters

Raine Musñgi

ABS-CBN News

<p>MANILA -- In his 2024 SONA, President Ferdinand Marcos Jr. pledged to ensure affordable, universal electricity for every Filipino. </p><p>But in a recent interview with DZMM’s Special Coverage, Energy Secretary Sharon Garin acknowledged that power costs remain among the highest in Asia, and that delivering on that promise requires leveraging Malampaya gas, liquefied natural gas, renewable energy auctions, grid investments, and a draft nuclear law.</p><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/vrFY5Y7mHSA?autoplay=1&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div><div><strong>Power costs still too high + shift from coal to LNG</strong></div><p>Reuters reports the Philippines continues to carry the second-highest electricity tariffs in Southeast Asia, behind only Singapore, driven by coal-heavy generation and expensive imported fuels.</p><p>But there is movement: 2025 is shaping up to be the first year since 2008 that coal-fired power generation declines in the region, fueled by rapidly rising LNG-fired output, which surged 25 percent in June 2025 and rose 5.2 percent to 10.36 TWh in the first half of the year. Coal’s share of total generation fell to 57.2 percent, down from 61.9 percent in 2024.</p><div><strong>What the government is doing</strong></div><ol><li>Transmission expansion &amp; grid upgrades<br/><br/>Public investment in NGCP enabled faster implementation of the Mindanao–Visayas Interconnection, which helped reduce wholesale spot rates to P1.99/kWh in Luzon, P1.77 in Visayas, and P1.30 in Mindanao. These cuts aid in lowering retail electricity costs.<br/><br/></li><li>Malampaya gas field expansion<br/><br/>Phase‑4 drilling at Malampaya—through wells like Camago‑3 and Bagong Pag‑asa—is underway to extend its operational life into the late 2030s. Malampaya previously supplied up to 40 percent of Luzon’s power, making it a key pillar of national energy security and a cheaper domestic alternative to imported fuels.<br/><br/></li><li>LNG as transition fuel<br/><br/>While the coal moratorium from October 2020 remains officially in effect, it allows exemptions for already-committed projects. But new greenfield coal applications continue to be disallowed. The government is pivoting instead to LNG, which has now captured a 17.5 percent share of the grid, and is projected to grow 65 percent by 2030.<br/><br/></li><li>Green Energy Auction &amp; renewables push<br/><br/>Full implementation of the DOE’s Green Energy Auction is expected to reduce average Luzon rates to P3.63/kWh by 2029, decreasing exposure to volatile fossil fuel prices and lowering overall energy costs.<br/><br/></li><li>Nuclear roadmap<br/><br/>The DOE is drafting a nuclear energy law and conducting public consultations to enable Small Modular Reactors (SMRs) by the 2030s -- part of a long-term strategy for affordable, stable baseload capacity.</li></ol><div><strong>Electrification and affordability collide</strong></div><p>Marcos’ 2024 SONA also promised 100 percent household electrification, but Garin admitted that about 5 percent of barangays, mostly remote or island communities, remain off the grid. </p><p>She said P70 billion in funding is required, but only P5–7 billion currently exists. Over 200 solar systems have been deployed so far, and Garin affirmed, “Kung diesel ang gamitin… sobrang mahal. Solar talaga ang best (If we use diesel... it&#x27;s too expensive. Solar is really the best.)&quot;</p><p>This multipronged push -- leveraging Malampaya, LNG expansion, renewables via auctions, grid upgrades, and nuclear planning -- marks the Marcos administration’s path toward cheaper, cleaner, and more secure electricity for all Filipinos.</p>

<p>How is the Marcos administration working to give Filipinos cheaper, universal power?</p>

How is the Marcos administration working to give Filipinos cheaper, universal power?

SONA REVIEW: Marcos vowed cheaper, universal power; DOE bets on Malampaya, gas, renewables, nuclear

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SONA REVIEW: Marcos vowed cheaper, universal power; DOE bets on Malampaya, gas, renewables, nuclear

Raine Musñgi,

ABS-CBN News

Published Jul 23, 2025 11:06 AM PHT

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