Cebu province is experiencing incredible economic growth. Its Information Technology-Business Process Management (IT-BPM) industry made $32.5 Billion in 2022, and is set to expand with two IT plants in Cebu City. The real estate sector is flourishing right along as tech employees buy up condominium units. The tourism sector is another growth area, with 2 million visitors in 2023. Infrastructure projects are also contributing to the region’s progress such as the Mactan-Cebu International Airport, Metro Cebu Expressway, and Cebu-Cordova Link Expressway.
Hand in hand with economic development is increased energy demands. “Cebu province alone bears half of the region’s total (energy) demand, with Metro Cebu accounting for over half of the province-wide requirement. This is projected to increase by approximately 7% annually,” according to Aboitiz Power Corporation (AboitizPower) Thermal Business Group COO Ronaldo Ramos.
To support the industry expansion, the region needs reliable energy infrastructure.
Dealing within variability
Renewable energy is seen as the solution to an impending energy crisis brought about by heightened demand and dwindling stores of fossil fuels as well as climate change. However, to support the momentum of economic development, power needs to be stable and reliable.
Renewable sources such as sun, wind, and hydro are variable and intermittent. The sun’s rays are not always accessible because of cloud cover, while wind and water levels are also subject to changing conditions.
Add to that, the abundance of renewable energy sources varies between geographic areas and over time.
While employing renewable sources of energy is necessary for sustainability, there is also a need to manage the peaks and dips in generation and to have the capacity to dispatch energy when power demand rises at certain times and seasons.
The need for a balanced approach
Right now, Cebu meets energy shortfalls by importing power from the Luzon and Mindanao grids. Experts forecast that peak demand in Visayas will reach 10,678 megawatts by 2050, from 2,464 megawatts in 2023. Half of the energy demand will be coming from Cebu. If no new power plants are built, demand will easily exceed supply, according to AboitizPower COO Ronaldo Ramos.
What would provide balance and stability would be baseload sources. Coal provides accessible, cost-efficient, and reliable power which growing economies need. It also supports the transition to renewable energy, ensuring that power is ready when needed. While growing the renewable energy sector to meet the Philippine Energy Plan goals, relying on conventional energy sources will keep power available and accessible, affordable, and stable.
Cebu Governor Gwen Garcia, speaking at The Freeman Business Forum, said that the region has to be “serious in generating more (power) capacity” to match the growth of the region. Only by embracing a diversified energy portfolio for the energy transition, can Cebu meet its rising energy demands while supporting sustainable development.
References:
https://tribune.net.ph/2024/11/08/energy-source-mix-vital-for-cebu-visayas-growth
https://www.iea.org/reports/managing-seasonal-and-interannual-variability-of-renewables
https://www.sciencedirect.com/science/article/abs/pii/S1364032114010715
https://mb.com.ph/2024/3/18/cebu-s-thriving-tech-sector-fuels-economic-dominance
https://tribune.net.ph/2024/03/26/cebus-it-bpm-industry-hits-325-b-in-revenue