THE JANUARY 2024 blackout in Iloilo City – and the rest of Panay Island – and the staggering 162 unscheduled power interruptions that followed last year expose a failure in the current system. Clearly, power stability is a critical need. Despite the National Grid Corporation of the Philippines’s (NGCP) assurances, the inadequacy of ancillary reserves continues to jeopardize the local economy and way of life. This is unacceptable and demands decisive action.
Ancillary services — regulating reserves, contingency reserves, and dispatchable reserves — are non-negotiable pillars of a resilient power grid. Yet the persistent outages and NGCP’s repeated delays in completing critical projects, such as the 3×100 MegaVolt Ampere substation in Iloilo City, show a disturbing lack of urgency. These failures place the livelihoods, investments, and daily lives of millions at risk.
Iloilo City, with its 13% annual energy demand growth, is rapidly emerging as a cornerstone of the Visayas economy. A reliable power supply is essential for attracting investments, sustaining industrial operations, and ensuring the comfort and productivity of its residents. Every blackout erodes investor confidence, stalls business operations, and disrupts households.
Without a doubt, NGCP’s reliance on the Competitive Selection Process (CSP) for ancillary reserves is insufficient. What Iloilo – and the wider Visayas – need is a comprehensive and area-specific strategy that goes beyond meeting minimum requirements. This includes prioritizing contingency reserves for high-growth areas like Iloilo and expediting delayed infrastructure projects. The excuses for delays, such as access issues, only highlight the lack of proactive planning and foresight.
Regulatory bodies like the Department of Energy (DOE) and local government units (LGUs) must adopt a firmer stance. The DOE must rigorously monitor compliance, enforce penalties for delays, and ensure that ancillary services are not only sufficient but exceed the demands of a rapidly growing region. LGUs, on the other hand, must become vocal advocates for energy stability, recognizing that power reliability is foundational to their development goals.
Transparency and accountability are non-negotiable. NGCP must regularly update the public on its progress in securing ancillary reserves and completing infrastructure projects. Residents and businesses have the right to know what is being done to prevent future blackouts and outages. This transparency will also pressure stakeholders to resolve bottlenecks swiftly and efficiently.
A broader national reassessment of ancillary services is equally essential. As Cong. Dan Fernandez rightly emphasized, there is no justification for the lack of sufficient reserves in regions like the Visayas when Luzon and Mindanao have access to them. Iloilo cannot afford to be left behind due to a failure of national energy planning.
Enough of half-measures. The economic growth, social well-being, and future prosperity of Iloilo and the broader Visayas hinge on a robust and reliable energy grid. Ancillary services must be rethought, expanded, and prioritized. NGCP and all stakeholders must act with urgency — before another blackout dims Iloilo’s bright prospects for progress.
