Cebu’s economy surged with a growth rate of 7.3% in 2023, marking it as one of the fastest-growing regions in the Philippines. However, this growth, particularly in energy-intensive sectors, is at risk if power generation cannot meet increasing demands.
The business sector is especially concerned about the threat of power shortages, as Cebu relies heavily on both local and inter-island power imports. With an available generating capacity of 1,123 megawatts, it falls short of peak demand, which exceeded 1,223 megawatts in mid-2024.
During the “Powering Cebu” business forum, Mark Ynoc, incoming president of the Mandaue Chamber of Commerce and Industry, highlighted the critical role of power in the nation’s post-pandemic economic recovery, “especially in preparation for the anticipated arrival of investments and increase in population growth.”
Before the pandemic, the National Economic and Development Authority (NEDA) identified Cebu’s potential as a hub for new investments in diverse sectors. These included large-scale manufacturing, marine vessel production, vehicle assembly and component manufacturing, natural resource processing, and metal fabrication.
Consistent power supply, vital for Cebu’s sustained growth
Reliable power is crucial for the island’s continued expansion in several key areas. For example, Cebu’s manufacturing and business process outsourcing sectors are already poised for growth, but they depend on uninterrupted power supplies to remain competitive. The hotel and tourism industries also underscore the importance of energy reliability; during peak seasons, power outages are particularly damaging, as not all establishments are equipped to handle such issues.
“During summer, we’ve encountered rotational blackouts, and we all know that not all hotels are equipped with generators that run 24/7,” stated Hotel Resort and Restaurant Association of Cebu Inc. President Alfred M. Reyes. “Energy is something that you cannot compromise. Once you’re out of energy, automatically your guests will move to properties that can provide 24/7 electricity.”
Business leaders agreed that for Cebu to remain a competitive player on both national and global scales, sufficient power capacity must be in place. “More power is always better,” noted former Cebu Chamber of Commerce and Industry (CCCI) President Charles Kenneth Co.
Uninterrupted energy as a tool for poverty alleviation
Jay Y. Yuvallos, the current president of CCCI, underscored the importance of a dependable power supply, describing it as a critical factor in reducing economic risks. He explained that alongside sustained economic growth, it could lift over 200,000 families in Central Visayas out of poverty. “In the Central Visayas Regional Development Plan for 2023 to 2025, [it was] mentioned that if we are able to sustain a growth rate of 6.5 to 8.5%… we are going to see a reduction of poverty incidence in Central Visayas from 26.7% to 10.5%. That’s a lot of impact,” he said.
The relationship between reliable power and poverty reduction is clear: when businesses have access to steady, affordable electricity, they can grow and expand, creating more jobs and business opportunities. This in turn raises the standard of living for workers, reduces unemployment, and helps reduce poverty. Additionally, reliable energy supports educational opportunities, healthcare access, and community services that contribute to a higher quality of life.
Yuvallos also emphasized the Chamber’s commitment to fostering economic resilience. “Our value chain in most of the industries here in Cebu extends towards, not only the Central Visayas, but Visayas in general and to a certain extent in Mindanao.” This interconnectedness makes reliable energy a cornerstone of the region’s progress, with energy security in Cebu directly benefiting the broader Central Visayas region.
Power infrastructure and stakeholder engagement needed
According to the Philippine Energy Plan projections, energy demand in the Visayas is expected to rise significantly, increasing from 2,464 megawatts in 2023 to 10,678 megawatts by 2050. This means that meeting current and future needs will require enhanced infrastructure and new power plants. “When there is a pressing need for power, then we definitely need additional generation capacity and infrastructure,” stated Ynoc.
Meanwhile, Department of Energy Assistant Secretary Mario Marasigan noted the importance of ensuring sufficient energy resources, stating, “Ensuring capacity is available when needed is crucial.”
During the business forum, CCCI also revealed its expansion of its Power Committee to address the critical challenges of energy stability, affordability, and reliability in Cebu. “Power is not just a business issue—it’s everyone’s issue. It’s fundamental to production, manufacturing, and even tourism,” Yuvallos explained. To support sustainable economic growth, the CCCI is forming a “Power Alliance” with key stakeholders to strengthen energy infrastructure and ensure long-term reliability.