With peak demand assumed to grow annually at 4.5 percent for the planning period 2009-2030, a total of 11,900 MW is needed for the Luzon grid; 2,150 MW for the Visayas grid; and 2,500 MW for the Mindanao grid.
The liberalized and market-based power industry put in place by EPIRA relies on the private sector to construct generation plants to meet demand. Private sector investments in power generation, however, have been lower than expected vis-a-vis projected energy demand. Moreover, the usual gestation period to build new electric power plants is three to five years.
A 60-percent level in energy independence is conservative given the country's natural resource endowments. Electricity generated from indigenous and renewable energy sources, however, is more expensive despite being accorded priorities in light of their environmentally benign characteristics.