The Philippines is facing a severe energy crisis, marked by soaring electricity bills and frequent blackouts. Experts attribute this crisis to a combination of policy mistakes, outdated infrastructure, and extreme weather conditions.
Meralco, the leading electricity provider, recently announced a price hike due to rising generation costs. However, following government directives, they reversed this decision and will implement gradual increases starting in July.
Since President Ferdinand Marcos Jr. assumed office in July 2022, the generation charge has nearly doubled, significantly impacting consumers, given that Meralco serves around one-fifth of the population.
Energy Secretary Raphael Lotilla has termed this situation “a calamity,” attributing it to surging demand caused by intense heatwaves in April. These high temperatures led to the drying up of hydroelectric reservoirs and disruptions in coal plant operations.
The shutdown of 19 aging power plants in Luzon due to overheating exacerbated the crisis. Anne Estorco Montelibano from the Philippine Independent Power Producers Association Inc. estimated economic losses of 556 million pesos every five hours without electricity.
To mitigate the crisis, the government has taken measures such as relying more on expensive bunker fuel plants, requiring large companies to use their generators, and implementing a four-day work week with temperature controls on air conditioning in the public sector.
Officials have promised to add 4.03 gigawatts of additional capacity this year to address the energy shortfall. However, some analysts criticize these measures as temporary fixes, leading to higher prices and reduced capacity in the long term.
There are concerns about the government’s heavy reliance on renewable energy, particularly solar, as it requires additional investments and expertise to connect to the grid. Critics warn that over-reliance on renewables could destabilize the grid, degrade power quality, and increase consumer prices.
Renewable energy advocates acknowledge technological advancements but criticize the government’s approach of refurbishing aging coal plants instead of phasing them out. They also question President Marcos Jr.’s commitment to renewable energy, citing plans to revive the Bataan nuclear plant despite past safety and corruption issues.