Legal Basis

“Electric Power Industry Reform Act (“EPIRA LAW”) was established to restructure the Electric Power Industry to achieve greater efficiency, ensure and accelerate total electrification of the country, to provide reliable and competitively priced electricity, to have a transparency of rates and services, and to provide a full range of choices for the stakeholders.”

In Luzon, total installed capacity rose to 15,393 MW while dependable capacity grew to 14,156 MW in 2017. Associated with 31.14% and 30.78 % growth from 2011-2017. About 45% increase came from new large coal plants from 2011-2017.

Source: DOE: Power Development Plan 2016-2040, Page 12. Five year Performance Assessment 2011-2015

Luzon’s grid peak demand by 2040 is expected to triple from 9,726 MW in 2016 to 29,852 MW by 2040. With this expected electricity demand growth the grid will be needing 13,635 MW of baseload capacity, 8,300 MW of mid-merit capacity and 2,450 MW peaking capacity with a total of 24,385 MW capacity addition in the grid. Considering the existing available capacity including the committed capacity up to 2020, Luzon will start to need additional capacity by 2023.

Source: DOE: Power Development Plan 2016-2040, Page 45.