DOE Maintains Power Stability Despite Oil Crisis Pressures

The Department of Energy (DOE) has allayed fears of power disruptions in off-grid areas and downplayed the likelihood of grid alerts in May, even as global oil supply concerns continue to raise energy security issues.

Energy Secretary Sharon S. Garin said the government has secured enough diesel supply to keep electricity flowing in remote and island communities, stressing that there is no risk of rotational brownouts tied to fuel shortages.

“We have no power interruptions due to a lack of oil supply,” Garin said, adding that “there is nothing the public should worry about regarding rotational brownouts in off-grid areas.”

Diesel Supply Bolstered

Off-grid areas in the Philippines, including many island communities, rely heavily on diesel-fired power plants operated by the National Power Corp.’s Small Power Utilities Group (NPC-SPUG). These areas are particularly vulnerable to supply disruptions due to their dependence on imported fuel.

To address this, the DOE has directed the Philippine National Oil Company (PNOC) to prioritize diesel allocation for off-grid generation companies. These firms are also being granted preferential pricing and flexible supply terms to ensure continuous operations and prevent spikes in electricity rates.

Garin said PNOC has been closely coordinating with NPC and other power producers to ensure the timely delivery of fuel, particularly to areas with the greatest need.

Since March, the government has procured diesel from multiple international sources to build up its reserves. As of April 24, the country’s diesel buffer stood at 54.61 days, with total imports reaching 1.12 million barrels.

“We are comfortable with the current diesel buffer,” Garin said, noting that government agencies continue to monitor and manage distribution to maintain supply stability.

No Immediate Yellow Alerts

On the broader power outlook, the DOE said it does not expect yellow alerts in May under normal operating conditions. A yellow alert is issued when the available power supply falls below the required reserve margin for the grid.

Energy Undersecretary Rowena Cristina L. Guevara said projections based on dependable capacity and expected demand indicate sufficient supply for the month.

“For May, we have yet to see possible yellow alerts,” Guevara said during a virtual briefing.

However, she cautioned that unexpected outages, particularly involving coal-fired power plants, could still trigger alerts. These facilities are known to encounter operational issues during the summer, when electricity demand peaks.

Recent grid conditions have already shown vulnerabilities. On April 16, the Luzon grid recorded its first yellow alert of the year following outages at a major gas-fired plant and several hydropower facilities. The Visayas grid also experienced a yellow alert due to limited power imports from Luzon.

Coal Policy Unchanged

The ongoing oil supply concerns, partly driven by geopolitical tensions such as the Iran conflict, have renewed calls from some sectors to revisit the country’s coal policy. Business groups and officials have suggested lifting the moratorium on new coal-fired power plants to stabilize supply and prices.

Garin, however, maintained that the moratorium will remain in place. “The moratorium is staying. There’s no lifting of the moratorium,” she said, clarifying that the DOE is instead encouraging existing and previously approved coal plants to maximize output.

Coal projects that secured permits before the 2020 moratorium may still proceed, while the DOE is also reviewing aging facilities for possible retirement.

“We are checking all our coal power plants to determine which ones already need to be retired,” Garin said, noting that frequent breakdowns can ultimately drive up costs for consumers despite coal’s lower base price.

Coal continues to dominate the country’s energy mix, accounting for more than 60 percent of electricity generation, followed by renewable energy and natural gas.

Transition Challenges

While the country is pursuing a transition toward cleaner energy sources, the DOE has acknowledged the need to maintain conventional generation capacity in the short term to ensure reliability.

Garin earlier said the department is considering temporarily increasing coal-fired output to address current energy pressures, even as it advances long-term decarbonization goals.

For now, the DOE’s immediate focus remains on securing fuel supply and stabilizing power delivery, particularly in off-grid areas where disruptions can have significant economic and social impacts.

Source:

https://www.bworldonline.com/the-nation/2026/04/29/746483/doe-no-blackouts-in-off-grid-areas/

https://tribune.net.ph/2026/04/29/doe-allays-fears-of-off-grid-brownouts

https://www.bworldonline.com/top-stories/2026/04/28/745891/doe-no-yellow-alerts-in-may/