Visayas and Mindanao have moved beyond the margins of development. As industries thrive and economic output rises, both regions now play a pivotal role in shaping the country’s growth. Meeting their momentum requires an energy system equipped to support it.
To tackle the challenge head-on, the fourth “Powering Up: Generating energy security in Visayas and Mindanao” roundtable was hosted by AboitizPower and the European Chamber of Commerce of the Philippines. The event gathered stakeholders to explore how energy security can drive sustained growth in Visayas and Mindanao through bold policy moves and essential infrastructure upgrades.
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Expanding economic landscape
Prof. Rowaldo Del Mundo of the University of the Philippines in Diliman noted that Eastern Visayas (Region 8) and Cebu are experiencing rapid growth in data centers and BPOs, driving demand for a reliable and large-scale power supply.
He stated, “Importante pag-usapan ‘yung growth ng economy ng Visayas at Mindanao, ang titigil diyan ‘yung hindi natustusan ‘yung energy sa pangangailangan.” (It is important to discuss the economic growth of Visayas and Mindanao because it will stop if the energy needs are not met.)
Del Mundo also highlighted Mindanao’s geographical strength as an agricultural hub. He stressed that to boost employment and national income, the region should focus on processing its agricultural products locally. “Meaning magtayo ng maraming agro-industrial processing plants connected doon sa agricultural economy,” he said. (Meaning, build many agro-industrial processing plants connected to the agricultural economy.)
Despite the Visayas and Mindanao’s role as agricultural powerhouses, many farmers and fisherfolk remain among the poorest, largely due to limited access to electricity. Asec. Romeo Montenegro of the Mindanao Development Authority pointed out the need for greater foresight.
“We need to be able to have a better planning and forecasting of our energy requirements attuned to the realities of our economic growth [and] in our inherent ability to deliver agricultural productivity,” he explained.
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The cost of power interruptions
Asec. Montenegro revealed that a decade ago, Mindanao suffered nearly P2 billion in losses from power outages, stalling its economic growth. He noted a supply shortfall of 300 to 400 megawatts (MW) led to prolonged brownouts—up to 13 hours in Zamboanga and General Santos—deeply impacting the region’s revenue and momentum.
Meanwhile, the Visayas faces unique challenges with its many islands, relying heavily on energy imports from Mindanao and Luzon. Energy Regulatory Commission (ERC) Chairperson Atty. Dimalanta explained that Mindanao supplies about 400 MW daily to Visayas, while Luzon adds another 100 MW. Due to the Visayas’ scattered archipelago, transmitting electricity across the islands presents significant challenges.
The role of the Mindanao-Visayas Interconnection Project (MVIP)
The MVIP was energized on April 30, 2023, with an initial 22.5 MW of power transferred from Mindanao to Visayas. The National Grid Corporation of the Philippines (NGCP) called it “a landmark undertaking that will improve power stability and reliability across the country.”
President Ferdinand Marcos Jr. hailed the energization of the grid as a “defining moment” for the Philippines, noting that it physically and functionally connects Luzon, Visayas, and Mindanao. The project can transmit 450 MW and can be upgraded to handle up to 900 MW.
The full commercial operation of the MVIP began on January 26, 2024. This enabled the three main island groups in the country to exchange electricity via one unified transmission system.
The MVIP is poised to strengthen the energy link between Visayas and Mindanao, enhancing grid stability and enabling more efficient power sharing. However, continued investment in energy infrastructure is essential to secure a stable power supply that matches the pace of Visayas and Mindanao’s growth. Without these efforts, energy constraints risk slowing the momentum of these fast-growing economic hubs.
Sources:
https://www.rappler.com/brandrap/status-energy-security-visayas-mindanao