Power regulators and industry must find fast and sustainable solutions

The Malampaya gas field contributes Malampaya gas field contributes 27% of Luzon’s electricity requirements as the sole source of fuel for gas-fired power plants, however its remaining reserves are projected to be completely exhausted in 2027. Amid its looming depletion, Malampaya is scheduled to undergo preventive maintenance from October 2 to 22 and will be temporarily shut down.

Halting Malampaya’s operations would impact over 3,200 megawatts (MW) of power supply since five power plants in Luzon are fueled by natural gas, namely Avion, Ilijan, San Gabriel, San Lorenzo, and Sta. Rita. This would further strain the Luzon grid’s thinning power supply and potentially cause a spike in electricity rates as these plants would have to run on more expensive liquid fuels such as diesel.

In addition to the affected natural gas plants, the Luzon grid’s power supply would be compromised by overlapping plant maintenance schedules, resulting in power interruptions due to the lack of supply. Simultaneous with Malampaya’s shutdown is the scheduled maintenance of Sual Unit 1 (647 MW), South Luzon Thermal Energy Corporation (SLTEC) Unit 1 (135 MW), and Sta. Rita Module 10 (265 MW) that are supplying a combined capacity of 1,047 MW.

The Department of Energy (DOE) has not laid out any concrete plans to address the incoming supply shortage and prevent rate hikes despite their preemptive knowledge of such maintenances. Consumers are also left with no assurance that the Luzon grid will not be placed under yellow or red alert in the coming months.

We at CitizenWatch Philippines believe that with or without pandemic conditions stable and affordable electricity must be ensured. The recent series of yellow, red alerts and brown outs, even during community quarantine conditions, are clear manifestations of inadequate power supply. The power and energy regulators and industry players must find fast and sustainable solutions that would accelerate the lighting up of base load power supply to stop these power outages that are costly to consumers and the further burdens our consumers.

Atty. Tim Abejo

Co-Convenor