Cebu’s rapidly growing economy calls for a long-term sustainable power supply as the demand for electricity continues to skyrocket, according to an industry expert.
At a forum on June 14 2024 organized by the Cebu Chamber of Commerce and Industry as part of the celebration of Cebu Business Month 2024, Ronaldo Ramos, chief operating officer for operated assets of the AboitizPower’s Thermal Business Group, says; “The Visayas grid recently encountered an unprecedented surge in demand, reaching a record-high of 2,525 MW, signaling a clear and significant upward trend in electricity consumption.” Included in his presentation was a report that confirms an imbalance of supply and demand in the Visayas.
“Businesses in Cebu have reported an average of 3-4 power outages per week, each lasting between 1 to 2 hours,” Ramos added, emphasizing Cebu’s unprecedented economic growth that resulted in a constand increase in power consumption over the years.
| Photo by Carl Lorenciana
He points out the risks of economic expansion amid an erratic power supply. The overloaded system falls short of the increasing demand, resulting in frequent red and yellow alerts.
These indicate that business operations could be interrupted, reducing productivity that will set back the economic progress the region is building.
Cebu Governer Gwen Garcia supports the urgent addressing of the issue, saying that “We cannot be relying mainly on others for our power. We need to be self-sufficient, not in 2027 but now.”
For Cebu Province and the entire Central Visayas region to maintain their economic growth, it is vital to find solutions for their power supply shortages. This step is crucial for reaching the entire Philippines’ economic goals.
Ramos said, “Our diverse energy portfolio affirms our belief that there is no one-size-fits-all solution, nor does any single organization hold all the answers and solutions. Together, we possess the power to shape a future where we can all proudly say we played a part in it.”
Among the country’s 7 regions, Central Visayas took the crown for the fastest growing economy in 2023 with a cumulative growth rate of 7.3%.
Metro Cebu’s economic hubs of Mandaue, Lapu-Lapu, and Cebu City lead the surge that placed the Philippines as the fastest-growing economy in Sourtheast Asia.
Due to its strategic strategic location, robust infrastructure, thriving tourism industry, and burgeoning business process outsourcing or BPO sector, Cebu has made rapid developments in the nation’s GDP, attracting foreign investment, supporting livelihoods, and setting an example for regional prosperity.
Toledo City in Western Cebu is home to Aboitiz Power Corp’s 340-megawatt (MW) Therma Visayas Inc (TVI).
To contribute to the pooling of power resources, Aboitiz plans to expand the capacity of its facility by 150 MW. Construction is projected to start by 2025 upon government approval.
Source: Cebu must ensure long-term power supply as economy grows