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Manila Bulletin devider Business devider Trade & Industry devider PEMC: Grid stability improves as red, yellow alerts drop by over 98%

PEMC: Grid stability improves as red, yellow alerts drop by over 98%

Published Sep 4, 2025 02:54 pm
The Philippine Electricity Market Corporation (PEMC) said that the power grid in country has significantly stabilized a year after the Reserve Market’s return, with red and yellow alerts now a rarity.
In a statement on Thursday, Sept. 4, PEMC reported that red and yellow alerts have been reduced by 98.39 percent compared to the period when the Reserve Market was suspended. For consumers, this means a significantly lower chance of power fluctuations like brownouts or blackouts.
PEMC noted that reserve requirements, which are the backup power needed to ensure grid stability, are now being met with stronger compliance from Ancillary Service Providers (ASPs). This success stems from the implementation of a Department of Energy (DOE) policy designed to promote generator facility certification for ancillary services.
Since the Reserve Market’s return, Luzon's reserve capacity has grown by 20.47 percent, from 6,754 megawatts (MW) in August 2024 to 7,190.4 MW in July 2025. Visayas also saw an increase of 27.47 percent, from 813.5 MW to 861.7 MW. MindanaoÆs reserve capacity has remained at 2,417.4 MW.
This positive trend follows the Governance Commission for GOCCs (GCG)'s decision in August 2024 to exclude PEMC from its oversight, making the organization no longer a state-run corporation. This change in governance has allowed PEMC to focus on its role in overseeing the Wholesale Electricity Spot Market (WESM).
PEMC also reported a decrease in violations by ASPs due to compliance with the new Ancillary Service Monitoring (ASM) manual. Rule breaches can result in penalties that are passed on to consumers.
The corporation stated that “with sustained fulfillment of reserve requirements and stronger adherence to the Reserve Conformance Standards (RCS) as well as the Reserve Offered Capacity Compliance (ROCC), the power grid is positioned for continued reliability improvements.”

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