The National Grid Corp. of the Philippines (NGCP) manages the country's high-voltage transmission network, spanning 21,137.55 circuit-kilometers and 224 substations as of May 2025. This infrastructure transports electricity from power generators to distribution utilities across the nation.
Recent Visayas Grid Challenges
From May 11 to July 1, 2026, the Visayas grid faced daily yellow alerts after four major power plants went offline, removing 591 MW from the system. The affected units included Therma Visayas Inc. (TVI) Unit 1 (169 MW), TVI Unit 2 (169 MW), Panay Energy Development Corp. (PEDC) Unit 3 (150 MW), and Kepco SPC Power Corp. Unit 1 (103 MW). A yellow alert occurs when the contingency reserve falls below the capacity of the largest operating generating unit.
On July 1, PEDC Unit 3 resumed operations, restoring 150 MW to the grid. Dependable capacity increased to 3,173 MW during the day and 2,729 MW at night, allowing the region to avoid yellow alerts starting at 2:40 p.m. that day. However, senior network operation supervisor Amado Otarra warned that the absence of yellow alerts does not guarantee safety, as TVI Units 1 and 2 remain under maintenance until September.
How Electricity Flows
Electricity generated at power plants passes through transformers to increase voltage to 230 kV or higher, minimizing energy losses during transmission. NGCP transports this power via high-voltage lines, substations, and submarine cables. In the Visayas, NGCP manages 6,737.89 circuit-kilometers of transmission lines, 84 substations, and 11,058.7 MVA of substation capacity, serving 116 transmission customers including 35 distribution utilities, 15 industrial customers, and 66 power generators.
At NGCP substations, voltage is reduced before delivery to distribution utilities like Visayan Electric Company or electric cooperatives such as Cebeco 1, 2, and 3. These utilities then distribute electricity through smaller lines and transformers to homes and businesses.
Major Infrastructure Projects
NGCP is pursuing the P11-billion Cebu-Lapu-Lapu 230-kV Transmission Line Project and Lapu-Lapu 230-kV Substation to replace aging 138-kV facilities serving Metro Cebu and Mactan. Construction is underway with submarine cables between Cebu and Mactan, targeting completion in December 2027. The project will increase transmission capacity and reduce congestion.
The P44-billion Cebu-Leyte Interconnection Lines 3 and 4 Project aims to increase transfer capacity between Cebu and Leyte to 2 x 600 MW upon full completion across three phases targeted for 2031, 2033, and 2035. Stage 1 alone will add 240 MW of transfer capacity. Michael Baylosis, transmission planning manager for Visayas System Operation, noted that project delays often stem from right-of-way acquisition, rerouting requests, and permitting processes rather than engineering issues.
Electricity Bill Breakdown
Assistant vice president and public relations head Cynthia Perez-Alabanza explained that consumers often misunderstand their electricity bills. Approximately 51-55% goes to power generation companies, 20% to distribution utilities, 20% to government-imposed charges (including taxes and Universal Charge), and only about 4% to NGCP for transmission. These transmission charges are regulated by the Energy Regulatory Commission under a rate cap. Alabanza stated, "If ERC allows only a certain amount for the year, that's all NGCP can collect."
Future Outlook
NGCP emphasized that transmission alone cannot solve power shortages. The Visayas has not commissioned a new baseload power plant since TVI Unit 2 in September 2019. As of May 2026, the region has over 4,193 MW of committed power projects, mostly renewable energy, and nearly 420 MW of battery energy storage systems. Otarra stressed that long-term energy security requires investment in dependable baseload generation, a balanced energy mix, and better coordination among stakeholders.
