“The challenge is immense, but so is the potential for transformation”
Filipino consumers know the struggle of power outages all too well.
From sudden brownouts to soaring energy bills, it’s clear that the current system is stressing to keep up with our growing demands.
As our population expands and our economy grows, our energy needs are skyrocketing. According to the Philippine Energy Plan, electricity demand is expected to more than quadruple by 2050.
The Marcos Jr. administration has put forward bold goals, promising a transition to cleaner energy sources, reducing our dependence on coal.
The Philippine Energy Plan (PEP) 2023-2050 outlines the country’s strategy to achieve energy security, sustainability, and affordability. Key components include increasing the share of renewable energy in the power generation mix to 35 percent by 2030 and 50 percent by 2040, as detailed in the National Renewable Energy Program 2020–2040.
The plan also emphasizes enhancing energy efficiency, modernizing infrastructure, and promoting energy access across all regions.
Additionally, the PEP aims to integrate emerging technologies and diversify the energy mix to reduce dependence on imported fuels. These initiatives are designed to support the country’s economic growth while addressing environmental concerns.
Sounds great on paper, right? But will these plans finally solve the seasonal power interruptions that disrupt businesses, schools, and even our simple household routines?
Take last year, for example. According to the Department of Energy, in 2024 alone, the Luzon grid recorded 31 yellow alerts and 11 red alerts, leading to power interruptions on four separate occasions.
Yellow alerts signal an insufficient operating margin, while red alerts indicate a supply shortage that cannot meet demand.
Several power plants were forced into outages, with a total unavailable capacity of 1,652.7 MW—nearly 9.32 percent of the Luzon grid’s dependable capacity.
The entire Western Visayas region even experienced a massive blackout in Jan/ 2024, affecting millions of residents.
These figures highlight the urgent need to execute comprehensive energy reforms to ensure a stable and efficient power supply for all consumers.
And how about affordability? With inflation pushing up the cost of living, high electricity bills are major monthly burden.
Whether you’re a small business owner trying to keep operations running smoothly or a family simply trying to make ends meet, high energy prices is an inescapable reality.
As consumer advocates, we at CitizenWatch Philippines have supported proposals to remove or reduce taxes on fuels used for power generation to lower electricity costs. However, the Department of Finance has opposed such measures, arguing that suspending fuel excise taxes would result in significant revenue losses.
A compromise solution could be a phased and calibrated tax reduction for industries critical to economic growth while maintaining levies on non-essential fuel consumption.
This strategy can help lower production costs and attract investment without significantly impacting government revenue.
The solution isn’t just about generating more power; it’s about making sure that power reaches everyone efficiently and affordably.
Energy reforms must cover the entire value chain—generation, transmission, and distribution. Investing in modern infrastructure, upgrading our grid systems, and cutting inefficiencies are crucial.
Increasing renewable energy sources such as solar, wind, geothermal, and hydro power in the energy mix are promising solutions. But let’s be real — transitioning to renewable energy isn’t going to happen overnight.
We need a realistic approach that balances progress with stability. Natural gas, for instance, can serve as a transitional fuel to bridge the gap as we work toward cleaner alternatives. And then there’s the much-debated nuclear energy option.
The government has ambitious plans to have nuclear power plants up and running by 2032 to enhance energy security, reduce greenhouse gas emissions, stimulate economic growth, diversify energy sources, and ensure long-term sustainability.
Consistent and sufficient energy is essential for all sectors of society to operate efficiently and contribute to economic expansion.
Without a dependable power supply, industries will face operational break downs, leading to reduced productivity and economic performance.
As we move forward, it’s time for policymakers, energy providers, and investors to work together with the end goal in mind: empowering the Philippine ecosystem with stable energy to accelerate and sustain economic velocity. Whether it’s through smarter grid management, stronger regulatory oversight, embracing innovative renewable technologies, every effort should be geared towards making energy available to all.
The challenge is immense, but so is the potential for transformation.
By ensuring electricity that is both accessible and affordable, the government can illuminate a more prosperous future for all.
Until then, we stand hopeful and vigilant, waiting for the day when power shortages become a thing of the past.
