Cebu is matching the country’s efforts to secure energy supplies to meet the rising demands of its thriving outsourcing, tourism, and manufacturing sectors.
Among the 17 regions nationwide, Central Visayas, with Metro Cebu at its core, leads with a 7.3% growth rate in 2023. The Queen City of the South’s rapid development, driven by its strategic location, robust infrastructure, thriving tourism, and flourishing BPO sector, significantly contributes to the nation’s GDP, creating jobs, attracting foreign investment, and fostering regional prosperity.
However, Cebu heavily relies on importing electricity from the neighboring islands of Panay and Leyte, as well as Luzon, with up to 60% of its power supply coming from outside its own borders. And given the power blackouts that hounded the Visayas region earlier this year, as well as a forecasted energy deficit in the next 3 to 4 years, Cebu has stepped up its efforts to secure its own power needs.
Calls to Action
Provincial Governor Gwendolyn Garcia has emphasized the need for more baseload power plants in Cebu. “We cannot be relying mainly on others for our power. We need to be self-sufficient, not in 2027 but now,” she said.
During the recent Cebu Business Month Summit, acting Cebu City Mayor Alvin Garcia shared the proactive steps they are taking to ensure a reliable power supply. “We have to invite investments from the private sectors, especially the power generation companies already here,” he stated, adding, “We only have to let them expand their capacity to supply power to Cebu lsland.”
Proactive Plans
Echoing Garcia’s sentiment, Aboitiz Power Corp., through its subsidiary Therma Visayas Inc. (TVI), announced its readiness to generate an additional 150 megawatts (MW) through a brownfield expansion plant in Toledo City, set to be operational by 2028.
According to its chief operating officer for operated assets Ronaldo Ramos, after necessary paperwork has been completed and approvals secured, TVI will commence construction before the end of 2025.
Counting on Coal
On a separate occasion, Department of Energy (DOE) Secretary Raphael Lotilla underscored the agency’s commitment to utilizing the country’s substantial coal capacity to sustain economic growth in 2024, following the impressive 5.6% increase in Gross Domestic Product (GDP) last year, the fastest in Southeast Asia.
According to the Secretary, the Philippines still possesses over 6,300 MW of reliable coal-fired power plants that are 10 years old or younger. “Maximizing the use of existing energy infrastructure avoids imposing additional cost burdens on both the economy and consumers,” he said.
Lotilla explained that renewable energy, particularly solar and wind, has significant growth potential, but its current contribution to the power mix remains modest at 22 percent. This is far from the Philippines’ goal of hitting 35 percent by 2030. In contrast, coal accounts for 62 percent of the national energy requirement.
While the DOE maintains a moratorium on the development of new coal plants, Lotilla stated that exemptions are in place “for committed, indicative, and expansion plans. We do not set aside our responsibility to ensure adequate baseload capacities in conjunction with our push to increase Renewable Energy’s share in the power mix.”
Sources:
Cebu keeps pace with PHL Energy Security goals
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