WITH Cebu accounting for about half of the Visayas’ power demand, provincial leaders are seeking help from the Department of Energy (DOE) Visayas to speed up energy projects, including the revival of the Alegria oil and gas field, and to strengthen monitoring of power plant outages that have contributed to recurring rotational blackouts.
Governor Pamela Baricuatro called an emergency meeting on Friday, Sept. 4, 2026, with officials from the DOE Visayas, the National Grid Corp. of the Philippines (NGCP), Visayan Electric Company and electric cooperatives to discuss the continuing power supply problem.
The meeting came as the Visayas grid was placed under red alert from 3 p.m. to 10 p.m. Friday and yellow alert from 1 p.m. to 3 p.m. and 10 p.m. to 11 p.m. NGCP’s 8 a.m. advisory showed 2,233 megawatts (MW) of available capacity against projected peak demand of 2,504 MW, with 815.8 MW unavailable because of plant outages and derated generating units.
NGCP cited the unavailability of Therma Visayas Inc. (TVI) Unit 1 and Panay Energy Development Corp. Unit 3, along with limited or unavailable electricity imports from Mindanao, among the factors behind the alerts.
Alegria oil and gas project
Baricuatro asked DOE Visayas Director Renante Sevilla to arrange a meeting with Energy Secretary Sharon Garin for an update on the redevelopment of the oil and gas field in Alegria town.
"I want to ask about the Indonesian company that wants to do oil exploration," Baricuatro said. "We want an update because, based on our meeting, they have a facility where they can bring their power barge and convert this 150 megawatts of gas from Alegria."
President Ferdinand Marcos Jr. approved Petroleum Service Contract 89 in April, allowing Texcal Energy Mahato Inc. to undertake the development and production of the Alegria field after about three years of dormancy.
Baricuatro said previous discussions with the Indonesian-based company included the possibility of using Alegria’s natural gas to generate up to 150 MW of electricity. The proposed power barge and its potential capacity have not been independently confirmed in publicly available DOE documents and remain attributed to the governor.
"Based on our committee [meeting], they have a facility from Indonesia—a big barge they can convert into energy—and pwede nila masulod sa inyung mga distributor (they can feed it into your distribution utilities)," Baricuatro said.
Sevilla said Texcal is reviewing data on the field and completing local permits and other regulatory requirements before full operations can resume.
"They are asking for help to facilitate converting their company into a local entity," Sevilla said. "Whatever requirements or local regulations exist, they have to fulfill them. We are trying to push for the process and facilitate their requirements."
DOE estimates released in April placed the Alegria field’s oil resources at about 27.93 million barrels in place, with about 3.35 million barrels considered recoverable. It also has an estimated 9.42 billion cubic feet of natural gas, of which about 6.6 billion cubic feet is considered recoverable.
Texcal has reportedly continued its preparations under Service Contract 89 for the redevelopment of the oil and gas field, including proposed well testing, workover operations, geological studies and production facilities. The company has also proposed processing some of the oil into diesel and bunker fuel.
Grid outages and monitoring
Provincial Administrator Joseph "Ace" Durano raised questions about power plant downtime and whether government rules could prevent several generating units from going offline at the same time.
"Actually, I am so happy that this meeting has been called because it's clear that the problem is the power generation side, not the distribution… but my question is, is there a way nga dili ni magdungan og kapawng ang tanang power generation kay it seems mao nay problema karon nga nagdungan og kapawng ang mga power plants (is there a way to prevent all power generation plants from shutting down at the same time, because it seems that is the problem right now — power plants are shutting down simultaneously)?" Durano said.
Sevilla said authorities monitor power plant performance and outages.
"We are establishing reports required to track power plant limits," he said. "And if there is negligence on the part of operators... they will be penalized."
The Energy Regulatory Commission (ERC) adopted revised power plant reliability rules in July that set allowable unplanned outage levels, strengthen reporting and monitoring requirements and provide for administrative sanctions for persistent noncompliance.
Cebu demand, grid vulnerability
Neil Modena, NGCP's Visayas head for system operations and assistant vice president, said Visayas demand has reached about 2,700 MW, with Cebu accounting for about half, or roughly 1,350 MW.
Modena said the 2,700 MW figure was the highest peak recorded on May 14 this year. Peak demand typically rises during the summer months, he said.
He said the Visayas grid recorded a peak of about 2,300 MW in January.
Cebu’s large share of regional demand makes the island dependent not only on local generators but also on electricity transferred through the interconnected Visayas grid from other islands.
When generating capacity becomes insufficient, NGCP may order manual load dropping, or the deliberate disconnection of selected loads, to maintain the stability and integrity of the power system. Distribution utilities then implement rotational outages in affected areas.
Modena said available Visayas grid generating capacity had fallen to 2,076 MW as of 2 p.m. Friday. The figure was lower than the 2,233 MW reported in NGCP’s 8 a.m. advisory, reflecting changing plant availability and system conditions during the day.
He also said some transmission facilities operate close to their limits during peak periods, reducing the grid’s ability to absorb sudden losses of generation.
The 103-MW capacity of Kepco SPC Power Corp. in Naga City had been fully restored earlier in the week, while TVI Unit 2 in Toledo City had returned to service. TVI Unit 1, with a capacity of about 169 MW, was expected to return by Sept. 11.
Taps energy conservation program
Baricuatro also issued Executive Order 47 establishing the Takna Pagpawong Sa Suga (Taps) Program in Cebu Province.
The order provides for a weekly energy reduction hour every Monday from 8 p.m. to 9 p.m., during which Capitol-managed facilities are directed to switch off or reduce the use of nonessential lights and appliances while maintaining critical, frontline and medical services.
Component local government units, commercial establishments, schools and households are encouraged to adopt similar conservation measures. The Provincial Government's jurisdiction does not include the cities of Cebu, Mandaue and Lapu-Lapu.
The Cebu initiative follows the national government’s broader energy conservation drive, although the DOE’s "Oras Natin sa Efficiency" campaign observes its weekly energy reduction period on Saturdays from 8 p.m. to 9 p.m.
Malapascua's power needs
Baricuatro also signed Executive Order 48 to address the long-term electricity needs of Malapascua Island in Daanbantayan.
The order creates a composite technical working group chaired by Durano to oversee the transition from the Provincial Government’s interim generation arrangement to a permanent power provider.
The Capitol deployed four 500-kilovolt-ampere generator sets to Malapascua in August 2024 after taking over interim power generation on the tourist island. Cebeco II handles electricity distribution.
The technical group will evaluate baseline data and coordinate with concerned agencies, including the National Power Corp.-Small Power Utilities Group and Cebeco II, to prevent service disruptions during the transition.
Other energy project updates
Aside from Alegria, the Provincial Government is pursuing the solar power project in Daanbantayan as part of efforts to increase Cebu’s generating capacity.
The P7.5-billion project is being developed by Acciona Energía through Freya Renewables Inc. The solar facility has a rated capacity of 150 MW, with battery storage planned to help release electricity during periods of high demand.
The project broke ground in March 2025. Its development timetable has since shifted, with more recent projections placing commercial operations in 2027. (CDF)
