Cebu is overcoming its persistent challenge of inconsistent power supply, thanks to government projects and new partnerships. The “Queen City of the South” has heavily relied on procuring electricity from nearby islands, with additional support from Luzon. In fact, approximately 60% of its power is sourced from energy sources beyond Metro Cebu.
Following the significant Panay Blackout earlier this year and with a forecasted power shortfall for Cebu over the next 3 to 4 years, the provincial government stressed the importance of constructing primary power stations in Cebu. These plants are essential to provide a stable power supply to support the area’s rapid expansion in population and growth.
As a result, Cebu is expanding its power resources, allowing it to further develop infrastructure and expand industries. This growth is expected to significantly boost employment and drive economic progress.
Infrastructure advancement
Cebu’s infrastructure is undergoing swift transformation, featuring these initiatives aimed at improving mobility and advancing urban growth:
- The Cebu Provincial Government has greenlit phase 2 of the Santa Fe Port project on Bantayan Island, a P110 million effort aimed at improving environmental protection and tourism. This phase will see the building of a reinforced concrete platform with roll-on and roll-off capabilities and gangways for boats. This structure is designed to maintain natural water and sand flow and protect the island’s natural beauty.
- In Tudela, approximately P13 million in new infrastructure projects have been launched, featuring a LED wall and perimeter fence to improve community facilities and security.
- Cebu is gearing up for significant infrastructure upgrades to ease traffic, including widening Sergio Osmeña Jr. Blvd., M.J. Cuenco Rd., and N. Bacalso Rd. Road closures will affect areas from P. Del Rosario St. to M.J. Cuenco Ave., as announced by the Cebu City Transportation Office. These changes are part of a larger plan to improve regional transit efficiency.
- The third Mactan Bridge is a key project also aimed at reducing traffic congestion and enhancing access to major tourism and industrial areas. Future plans involve developing a subway system and expanding Cebu International Airport, which are anticipated to attract further investment and sustain regional economic growth.
Increased tourism activity
Tourism has long been an economic driver in Cebu due to its stunning beaches, rich cultural heritage, cuisine, and wide range of activities. Here are some programs to further enhance the area’s tourism value.
- The Tourism Infrastructure and Enterprise Zone Authority has allocated an additional P100 million for restoring Nuestra Señora del Pilar Church in Sibonga. This investment aims to preserve heritage sites while also fostering historical tourism.
- Significant developments in Cebu include the Sheraton Cebu Mactan Resort, Radisson Blu Cebu, and Movenpick Hotel Mactan Island Cebu, alongside new projects such as Mandani Bay Quay and Skywaterpark Cebu, which will provide diverse recreational options. The city is also upgrading its transportation infrastructure, particularly Mactan-Cebu International Airport and the Cebu-Cordova Link Expressway, to enhance accessibility.
Industrial expansion
With a stable power supply, industries can avoid costly downtimes and disruptions, leading to smoother production processes and more predictable output. This reliability attracts investments and supports the adoption of advanced technologies and machinery, enabling businesses to enhance their capabilities and innovate.
Improvements to Cebu’s power infrastructure, including the Cebu-Cordova Link Expressway and the Cebu Bus Rapid Transit system, will improve transportation and logistics efficiency.
With Cebu’s expanded industries, more jobs will be generated for residents, reducing poverty incidence. But to expand and prepare the workforce, education and training programs need to be aligned with industry requirements.
Energy self-sufficiency
Cebu’s power demand is expected to rise by 7% yearly. Experts agree that a power shortage is highly possible if new power plants are not built within the next few years.
To address this issue, efforts like the Third Transmission Voltage Interconnection Project and the expansion of the Therma Visayas Inc. (TVI3) Toledo Power Plant by AboitizPower are underway.
Moreover, the upcoming 169 MW baseload capacity addition from TVI3 in Toledo, Cebu is anticipated to reduce Cebu’s dependence on electricity imports. This will improve energy security and decrease vulnerability to external influences.
As one of Cebu’s major power plants, TVI can offer a dependable and ample power supply crucial for supporting regional and national growth.
These initiatives not only aim to secure its energy independence but also position the region for sustained economic development and resilience, ensuring that Cebu remains a pivotal player in the nation’s progress.
Source: COMMENTARY | What happens when supply meets demand: Power-independent Cebu