Philippine electricity demand growth hinges on vaccine drive: report

It is expected to show an annual growth of 5-6% until 2024.

The Philippine electricity demand is expected to further grow by 5-6% annually until 2024 as the government continues its vaccine roll out in 2022, the International Energy Agency (IEA) reported.

Demand started to rebound as the Philippine government lifted quarantine restrictions, gradually reopening activities.

In the first half of 2021, it recorded a 3.1% growth in demand compared to the same period in 2019.

The Philippines’ electricity is still largely dominated by coal and gas, which accounted for 54% and 21% of the system respectively.

The share of solar photovoltaic and wind in the Philippines remains “low” at 3% in 2021, compared to other renewable energy sources, such as geothermal with 10% and hydro with 7%.

“Low reserve margins were observed in the Luzon grid during April and May 2021 (the hot and dry season),” the IEA report read in part. 

“Reserve shortfalls were seen on several days due to high demand for cooling coinciding with lower hydropower availability.”

In this light, concern over electricity security has emerged, particularly due to the May 2022 national elections.

The IEA noted the Dinginin supercritical cola power plant (1.3 gigawatts), expected to operationalise in the second quarter of 2022, is expected to alleviate this concern.