Alsons Power Group is accelerating its renewable energy expansion as Mindanao confronts a narrowing electricity supply buffer, with projections pointing to the potential exhaustion of excess generation capacity by 2028 amid sustained demand growth.
The National Grid Corporation of the Philippines (NGCP) has warned that Mindanao could run out of surplus generation capacity by 2028, raising concerns about the prospect of renewed power shortages that hampered economic activity across the island more than a decade ago.
Peak electricity demand in Mindanao reached 2,775 megawatts (MW) in May 2026, up from 2,682 MW in 2025. Demand is projected to rise to 3,585 MW by 2030, surpass 6,000 MW by 2040 and approach 9,800 MW by 2050.
The Department of Energy estimates that the island will need about 23,000 MW of installed capacity by 2050 to maintain reliable electricity supply.
Against this backdrop, Alsons Power is repositioning part of its generation portfolio toward renewable energy while retaining conventional facilities that help stabilize the grid.
The company is converting its former diesel facility in Alabel, Sarangani, into a 45-MWac solar power plant, targeted to begin commercial operations in the second half of 2027. It is also pursuing hydropower projects in Zamboanga and Negros Occidental and exploring battery energy storage systems to support grid reliability.
Meanwhile, its existing diesel facilities in Zamboanga and Iligan continue to provide ancillary services that help maintain grid stability.
Alsons Power Vice President for Corporate Affairs Ruben Tungpalan said dependable electricity is essential to attracting investments, expanding industries and generating jobs.
“Behind all of these is something fundamental: power,” Tungpalan told the General Santos City Chamber of Commerce and Industry.
The planned projects come as Mindanao faces a growing challenge: ensuring that new generation capacity keeps pace with expanding economic activity. With demand expected to rise sharply over the coming decades, the timing of new projects and the reliability of existing infrastructure will be critical to avoiding a return to supply constraints.
