Cebu, the Philippines’ fastest-growing region, harmoniously blends tradition and modernity, attracting local entrepreneurs and foreign investors alike. This thriving province has emerged as a dynamic powerhouse, fostering economic growth and innovation.
Shaping a Prosperous Future
Cebu Business Month, held last August, showcased the province’s economic vitality through a series of impactful events uniting leaders, entrepreneurs, and stakeholders. The Tech Summit highlighted advancements in artificial intelligence and digital transformation, unveiling new business opportunities. Meanwhile, the Entrepreneurial Summit provided a platform for local startups to share innovations and network. The festivities commenced with the Good Design, Good Business Summit, which underscored the significance of design in Cebu’s future development.
Cebu’s strategic plan emphasizes comprehensive urban planning that meets evolving needs while preserving cultural heritage and natural beauty. The province’s rich culture and vibrant population create an ideal environment for investment in creative and entertainment industries. By fostering art and innovation, Cebu aims to attract investments, enhance infrastructure, and improve residents’ quality of life.
Sustained Growth Requires Reliable Power
Cebu’s ambitious plans are grounded in practicality, stressing energy security, water sustainability, and strategic urban planning as central themes at the Good Design, Good Business Summit. This event highlighted the crucial connections between design, strategy, and sustainability in supporting Cebu’s growth objectives.
Energy security poses significant challenges, especially considering the Visayas region’s limited reserves and Cebu’s substantial share of regional demand. The urgent need for energy security necessitates a balanced approach that incorporates renewable energy alongside innovative baseload options.
With increasing calls for additional capacity in the next three to four years, focusing on a hybrid energy approach, with renewables continuing to expand but complemented by traditional energy sources, is essential. Although the long-term goal is to phase out fossil fuels, the region’s journey towards energy independence requires balancing innovation with reliability.
This emphasis on dependable energy sources aligns with Cebu’s ongoing economic growth. As the region continues to develop, ensuring a stable energy supply is critical for supporting both current demands and future development.
Expanded and Additional Baseload Power Sources Needed
The “Good Design, Good Business Summit” highlighted that Cebu accounts for a significant share of electricity consumption in the Visayas, making reliable energy a critical factor for economic growth.
Cebu province is responsible for half of the region’s electricity demand, with Metro Cebu accounting for over 50% of the total provincial requirement. This demand is projected to grow by approximately 7% annually, underscoring the urgent need for energy security to support sustained economic expansion, which reached 7.3% last year, the fastest in the country.
Recently, the Visayas grid faced power supply issues as peak demand exceeded 2,500 megawatts (MW), surpassing the available capacity of 2,200 MW. This discrepancy led to frequent red and yellow alerts, resulting in multiple outages each week, lasting one to two hours. The economic losses from these outages are estimated at P500 million monthly, significantly impacting various sectors.
Without new power plants in the next three to four years, Cebu’s power demand could surpass available supply. Currently, the province relies heavily on neighboring islands for energy, importing around 60% of its electricity needs. To address this dependence, plans are in place to add a new unit to the existing Therma Visayas coal-fired power plant in Toledo, contributing 150 MW to the grid.
The importance of baseload power plants like Therma Visayas is crucial, particularly with the increasing integration of variable renewable energy sources, which contribute to grid instability. This instability is exemplified by the “duck curve” phenomenon in solar power generation. In regions with high solar capacity, such as Australia, this effect is significant; a similar situation exists in Negros, where solar energy supply decreases in the evening.
There is a growing caution against pursuing renewable energy at all costs, advocating for balanced and pragmatic solutions. This approach entails expanding renewable capacity while investing in grid infrastructure, exploring decentralized energy solutions, and ensuring reliable baseload power. Moreover, it is vital to make the increasing energy capacity accessible and affordable for all sectors of society.
Bottom Line
Cebu’s economic landscape is a vibrant blend of tradition and innovation, establishing it as an ideal hub for entrepreneurs and investors. The province’s commitment to fostering collaboration was evident during Cebu Business Month, where events explored advancements in technology and entrepreneurship. Initiatives focused on urban planning, cultural preservation, and infrastructure development position Cebu for a promising future.
However, growth faces significant challenges, particularly in energy security. The province’s electricity demand is projected to rise by 7% annually, underscoring the urgency to enhance and diversify power sources. Planned projects, including the solar facility in Negros Occidental and the expansion of the Therma Visayas plant, are vital for ensuring stable power supply.
In conclusion, Cebu’s aspirations for sustained growth depend on a balanced strategy addressing energy supply challenges and environmental sustainability. By prioritizing reliable baseload power and implementing effective water management practices, Cebu can secure its future. Collaborative efforts among stakeholders will be crucial in shaping a resilient energy landscape that meets current demands and supports future development, ultimately enhancing the quality of life for its residents.
https://aboitizpower.com/news/energy-transition/a-balanced-energy-transition-approach-for-cebu