‘Philippines needs over P100 billion for smart grids’

To cut blackout losses

MANILA, Philippines — The Philippines needs $1.79 billion (around P104 billion) in smart grid investments to avoid mounting economic losses caused by power outages, according to energy think tank Ember.

In a report released yesterday, Ember said fast-growing economies like the Philippines, where blackouts impose higher costs, must leverage digital technologies to enhance the reliability of their power systems.

Unlike traditional grids that are not built to handle constant changes in power supply, smart grids connect generation, transmission, distribution and consumption through advanced digital tools.

With the right investment, Ember said, modern grids could help stabilize supply and enable the seamless integration of renewable energy (RE) sources.

“Smart grid deployment will be vital in shaping a cleaner and more resilient energy future, delivering reliable, flexible and secure electricity to both growing industries and Filipino households,” said Alnie Demoral, Asia energy analyst at Ember.

Between 2015 and 2020, the average economic cost of power outages in the Philippines was $3.55 per kilowatt-hour (kWh), the report showed.

The figure was lower than Singapore’s $6.23 per kWh and Myanmar’s $3.68 per kWh, but higher than those of other Southeast Asian countries.

Although the Philippines has reduced the length of power interruptions, Ember pointed out that the overall amount of electricity lost during outages remains significantly high.

In 2020 alone, the Philippines recorded over 41,000 megawatt-hours of power lost, according to the report.

As such, Demoral underscored the urgent need to modernize the country’s transmission network to complement the entry of renewables while also opening doors for more skilled green jobs.

With $1.79 billion in smart grid investments, Ember estimates that the Philippines could generate over 107,000 jobs to support distribution modernization, rapid RE expansion and cross-border power integration.

Across Southeast Asia, meanwhile, around $4 billion to $10.7 billion in smart grid investments are needed to create 650,000 jobs and avoid $2.3 billion in economic losses by 2040, the report said.

“Smart grids are no longer optional – they are the backbone of ASEAN’s clean energy future. Investing in smart grid infrastructure is both an energy transition enabler and a driver of economic and industrial competitiveness,” Demoral said.