The Maharlika Investment Corporation (MIC) explained its decision to prioritize the country’s energy sector, following its recent investment in the National Grid Corporation of the Philippines (NGCP).
“Energy security sits at the top of our priorities. A study by the Department of Energy (DOE) highlights that power precedes progress. Our first investment will support NGCP’s rollout of its transmission grid infrastructure,” MIC President and CEO Gilberto Consing Jr. said in a Palace briefing.
MIC acquired a 20% stake in Synergy Grid and Development Philippines Inc. (SGP), securing seats in the country’s power grid operator.
Consing noted that improving the country’s transmission grid is key to addressing high electricity costs.
Although transmission charges account for only 3.1% of the electricity cost per kilowatt-hour, upgrading the infrastructure will encourage more power producers to connect to the grid.
“With more power players on the grid, supply increases, which, like any commodity, will eventually drive prices down,” Consing said.
He also highlighted the government’s renewable energy goals—35% of the energy mix by 2030 and 50% by 2040—and reiterated MIC’s commitment to supporting NGCP in achieving these targets.
“Renewable energy, over the long term, will reduce power costs for everyone,” he said.
DOE Secretary Raphael Lotilla echoed Consing’s sentiments, citing the recently completed Mindanao-Visayas Interconnection Project as a concrete example of how transmission upgrades can lower electricity prices.
“After the interconnection was finished, wholesale electricity spot market prices dropped significantly—by almost P2 per kilowatt-hour in Luzon, P1.77 in the Visayas, and P1.30 in Mindanao,” Lotilla said.
The project enabled Mindanao, which previously had an 800-megawatt surplus, to export 400 megawatts to the Visayas and Luzon grids, alleviating transmission constraints that had driven prices up.
Both officials underscored that continued investment in and expansion of transmission infrastructure will play a pivotal role in ensuring affordable and reliable power for the nation.
