Rising temperatures and a surge in tourist activity drive power demand across the Visayas, with Cebu at the center of the pressure. The Department of Energy (DoE) projects peak demand in the region to hit 3,111 megawatts (MW) this year, climbing from 2,681 MW in May 2024.
In 2024, Cebu welcomed over 5 million tourists, comprising most of Central Visayas’ 7.5 million visitors. This significantly increases the island’s energy demands and highlights the need for targeted power solutions.
Although the DoE projects a maximum available capacity of 3,040 MW for the Visayas, concerns linger over whether Cebu’s transmission network and local power sources can reliably meet peak demand amid rising consumption.
The National Grid Corporation of the Philippines (NGCP) reports an available transmission capacity of 2,281 MW for the Visayas, a figure that appears sufficient on paper. However, NGCP warns that power alerts, including yellow and red, remain a real risk—especially if unexpected outages or supply delays arise. This was evident in 2024 when a yellow alert was triggered despite a higher capacity of 2,890 MW, as demand surged to 2,538 MW.
DoE Secretary Raphael Lotilla warned that without careful consumption, “this surge could strain the power grid, potentially leading to supply challenges and price fluctuations in the spot market.”
Additionally, the Institute for Climate and Sustainable Cities (ICSC) warns of tightening power reserves in the Visayas in June, increasing the region’s vulnerability.
(Also read: Ensuring Reliable Power for Cebu’s Continued Growth)
Cebu’s economy on a consistent rise
Cebu’s economic growth hinges on stable, affordable power. The January 2024 blackout in Panay Island highlighted the high cost of outages, with Iloilo alone suffering a P3.8 billion loss during just four days of disruption.
Contributing 73% to Central Visayas’ economic growth, Cebu faces power supply challenges amid rapid industrial expansion. With Mandaue growing at 7.3%, Lapu-Lapu at 9.4%, and Cebu City at 8.3%, the region’s heavy reliance on neighboring islands for energy poses a significant risk to its drive toward upper middle-income status.
Jay Yuvallos, president of the Cebu Chamber of Commerce, stressed that unreliable power threatens key sectors like manufacturing and tourism.
Meanwhile, Alfred Reyes, president of the Hotel Association, warned that summer blackouts could drive tourists away. “Energy is something that you cannot compromise,” he explained. “Once you’re out of energy, automatically your guests will move to properties that can provide 24/7 electricity.”
Recently, consumer group ILAW gathered Cebu’s tourism and business leaders to highlight the urgent need to upgrade the province’s aging energy infrastructure. The report cautioned that unresolved power issues threaten Cebu’s investment appeal and economic progress. It also noted that frequent disruptions risk customer dissatisfaction and could tarnish Cebu’s reputation as a top tourist destination.
“Continued power instability threatens business sustainability, job security, and the long-term growth of the tourism sector,” stated ILAW national convenor Beng Garcia. “If this persists, businesses will have no choice but to shut down, leaving many without jobs.”
ILAW urged the DoE and Energy Regulatory Commission (ERC) to enforce stricter accountability on electric cooperatives in key tourism areas, calling for penalties and mandatory compensation for service failures.
(Also read: Cebu Sectors Push for Energy Upgrades Amid Rising Demand)
Fueling Cebu’s power independence
Despite Cebu’s impressive economic rise, the island remains heavily reliant on power sourced from outside provinces such as Panay and Leyte, with up to 60% of its supply from beyond Metro Cebu. This dependence exposes Cebu to transmission issues and supply disruptions that could stall its momentum.
Cebu Governor Gwendolyn Garcia has frequently underscored the urgent need to boost the island’s local power generation, citing past power interruptions and rising demand. “If we are to even be able to match the phenomenal growth that Cebu is experiencing right now, we would have to be serious in generating more capacity,” she declared. “That has become a focus and priority for me,” Garcia said at an energy forum last year.”
Experts trace the repeated outages to a lack of expansion in generation facilities. According to Developers of Renewable Energy for Advancement Inc. President Jose Layug, around 2,500 MW in generation capacity have been offline during peak summer months over the past four years, largely because of outdated and deteriorating power facilities.
Industry groups emphasized that sufficient capacity alone does not guarantee availability—what truly counts is having that capacity ready and reliable when demand peaks. “The timely commissioning of new power plants, as outlined in the DOE committed power projects report, will significantly impact the grid’s resource adequacy,” the NGCP explained.
The need for steady baseload and energy variety
The DoE plans to add nearly 6,841 MW of new power capacity in 2025, with Luzon set to receive the bulk at 5,754 MW. The Visayas and Mindanao will see smaller increases, gaining 855 MW and 232 MW respectively, as the country expands its energy infrastructure.
The Visayas is ramping up its shift to renewables with several large-scale solar and wind projects in the pipeline. Major solar developments include projects in Kananga-Ormoc (300 MW), Calatrava (137.48 MW), Bacolod (130.05 MW), and San Isidro (112 MW, Phase 1), alongside a 239.56-MW solar farm with a 65-MW battery storage system in Negros Occidental.
However, experts caution that clean sources alone can’t meet the province’s growing power
needs—especially during peak summer months. Former Cebu Chamber of Commerce and Industry President Charles Kenneth Co pointed to Cebu’s limited wind and hydro potential due to its geography, unlike regions with stronger natural resources.
Citing data from the NGCP, Co stated that Cebu’s power demand is expected to rise by 7% each year. “Without the construction of new power plants within the next three to four years, there may be an imminent power shortage,” he said.
The DoE also underscored that conventional energy still plays a key role, with an additional 1,320 MW from gas, 500 MW from coal, and 76 MW from oil-fired plants expected to be added to the grid within the year.
Meanwhile, the Cebu Electricity Rights Advocates (Cera) renewed its warning about Cebu’s unstable power supply, pointing to the March 2025 shutdown of the Naga Oil-Fired Power Plant and its diesel unit, which removed over 44 MW from the grid and worsened current shortages.
Cera argued that the drop in available baseload power is already driving up prices in the Wholesale Electricity Spot Market (WESM), where many electric cooperatives still sourced a significant share of their supply. Recent data showed WESM prices in some areas have jumped between 2.7% and 95%.
To help close the gap, a 169-MW expansion is underway at the Therma Visayas Inc. baseload plant in Toledo. Alongside broader grid upgrades like the Third Transmission Voltage Interconnection Project, these developments aim to improve energy reliability for a province experiencing rapid growth and rising demand.
At an energy forum in June 2024, Lotilla stressed the government’s role in ensuring dependable baseload power, even as it scales up renewables. He highlighted that a diverse energy mix—combining traditional and renewable sources—is essential to maintaining grid stability.
With rising temperatures and peak demand putting pressure on the system, experts emphasize the urgent need for timely project completion and strategic planning. For Cebu and the rest of the Philippines, securing a reliable and sustainable power supply depends on balancing energy sources and acting swiftly to strengthen infrastructure.
https://www.sunstar.com.ph/cebu/power-group-warns-of-supply-strain-seeks-consumer-shield