DOE Expects Improved Visayas Grid Stability as PEDC Unit 3 Targets July Restart

The Department of Energy (DOE) expects power supply conditions in the Visayas Grid to improve significantly in the coming weeks as the 150-MW Unit 3 of Panay Energy Development Corporation (PEDC) is scheduled to resume operations by July 3, 2026.

The Visayas Grid has been under recurring yellow and red alert conditions since May 12 due to simultaneous outages at several major power generation facilities, resulting in supply shortfalls across the region.

According to the DOE, three major generating units remain under restoration, including two 169-MW units of Therma Visayas, Inc. and PEDC Unit 3. Restoration efforts are ongoing, with authorities reporting early signs of improvement in grid conditions.

DOE Undersecretary Mario Marasigan said ongoing restoration activities have already contributed to a reduction in the number of yellow alert hours and helped lessen the severity of supply deficits experienced across the grid.

However, the agency noted that additional challenges emerged on June 14 when Unit 1 of KEPCO-SPC Power Corporation (KSPC) experienced operational issues and was forced offline. The unit is currently undergoing technical assessment and is expected to return to service by June 19.

To address immediate supply concerns, the DOE is implementing a series of short- and medium-term measures in coordination with the Energy Regulatory Commission (ERC) and the National Grid Corporation of the Philippines (NGCP).

The planned interventions could add approximately 260 MW of capacity to the Visayas Grid, sufficient to supply an estimated 1.25 million households. The measures include the deployment of around 170 MW of Battery Energy Storage Systems (BESS) across Cebu, Negros, and Panay to provide both energy and ancillary services. Additional initiatives include the installation of a 20-MW modular diesel generating set and the potential relocation of a power barge from Metro Manila to Panay Island.

Beyond the immediate response, the DOE is advancing longer-term projects aimed at strengthening energy security and improving generation adequacy in the Visayas region. These include the ongoing development of Therma Visayas Unit 3 and the proposed Unit 2 expansion of Palm Concepcion Power Corporation (PCPC), which is currently under evaluation for accelerated implementation.

Energy Secretary Sharon Garin said the expected return of PEDC Unit 3, combined with additional capacity support measures, would play a crucial role in stabilizing power supply conditions across the region.

She noted that the government’s priority remains restoring grid reliability and reducing the recurrence of yellow and red alerts that have affected consumers since May.

The DOE said it will continue to closely monitor grid conditions and work with industry stakeholders to implement both immediate and long-term solutions to ensure a stable, reliable, and adequate electricity supply for the Visayas.