The Market Monitor Minding the Nation's Business
The National Grid Corporation of the Philippines (NGCP) issued its first yellow alert for the Luzon grid this year, citing insufficient operating margin as temperatures continued to rise. The alert was in effect from 5 p.m. to 7 p.m. on Wednesday.
According to the Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA), the highest heat index in Luzon reached 42°C in Echague, Isabela, and Baler, Aurora.
NGCP recorded peak demand at 11,829 megawatts (MW), while available capacity stood at 12,488 MW, leaving a slim operating margin of 659 MW. The situation was further strained by forced outages and derated power plants.
“Eight plants have been on forced outage since February, and four other power plants out since 2024; while 16 are running on derated capacities, for a total of 3,362.3 MW unavailable to the grid,” the NGCP said.
The Department of Energy (DOE) projected peak demand in the Luzon grid this year to reach 14,769 MW, exceeding the actual peak demand of 14,016 MW recorded on April 24, 2024.
Despite the yellow alert in Luzon, NGCP assured that both the Visayas and Mindanao grids remained in normal operation.