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Power Shortages Boost Reliance on Generators

Akihiro Komuro Amid rising demand during the dry season and the risk of power plant outages, concerns are mounting in the Philippines over tight electricity supplies. The Energy Regulatory Commission (ERC) has noted that prices on the Wholesale Electricity Supply Market (WESM) could increase by approximately 4 pesos per kWh.
This increase is due to a combination of factors, including high temperatures, the shutdown of some power plants, and rising fuel costs.
These conditions are also causing instability in the power supply at the regional level. For instance, Boracay’s supply capacity has not kept pace with the surge in electricity demand fueled by the tourism recovery, prompting the use of generators in some areas. Although transmission operators aim to avoid power outages through future infrastructure improvements, reliance on backup power sources continues to some extent.
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COVID-19 Variant Disrupts Supply Chain

Akihiro Komuro In Southeast Asia, where the delta variant of the COVID-19 is spreading rapidly, business activities are becoming stagnant. In response to government regulations and the rapid increase in the number of infected people, major Japanese companies such as Toyota and Panasonic have suspended production at some of their plants. In addition to the decline in local sales, the disruption of the supply chain has also affected production in Japan.
Toyota has sequentially shut down all three of its plants in Thailand since July 20. The company has not yet decided when to resume operations because it has been unable to procure parts due to an outbreak of infection at one of its customers’ plants. Honda also shut down one of its plants in Thailand from August 3 to 5.