The Philippines is projected to be Southeast Asia’s fastest-growing economy and the second fastest in Asia over the next two years, according to the latest World Economic Outlook from the International Monetary Fund (IMF). The organization has kept its 6% GDP growth forecast for the country in 2024, which, if achieved, would make the Philippines the top performer in the ASEAN region.
Meanwhile, Central Visayas, with Metro Cebu at its heart, led the nation with a 7.3% growth, reaching P1.38 trillion in 2023. Major contributors to this growth included wholesale and retail trade, transportation and storage, as well as accommodation and food services.
To fuel this economic progress, Department of Energy Secretary Raphael Lotilla emphasized the importance of utilizing current coal power. “Maximizing the use of existing energy infrastructure avoids placing an added cost burden on both the economy and consumers,” he said, adding that this action is essential to ensure cost-effective and adequate baseload capacity through 2030.
While the country is working to ensure stable power supply in the coming years, Cebu is hoping to sustain momentum for its rapidly expanding economic center. As demand rises from key sectors such as IT-BPM, manufacturing, and tourism, energy security is becoming increasingly crucial.
Cebu’s insufficient power supply
Cebu, heavily dependent on power imports from islands like Leyte and Panay, also receives some electricity from Luzon. Approximately 60% of Cebu’s energy comes from plants outside the city.
Following concerns over the Panay blackout and anticipated shortages in the next few years, Governor Gwendolyn Garcia has called for the development of baseload power plants in Cebu to safeguard its expanding economy.
“If water is life, then power gives life to the economy,” declared Garcia at The Freeman’s “Powering Cebu” business forum. “Power gives life to the economy. If there is a lack of [electricity], then there is no economic growth to speak of.”
Jay Yuvallos, President of the Cebu Chamber of Commerce and Industry (CCCI), highlighted the critical need for consistent power supply in Cebu. He emphasized that stable energy resources are essential not only for business operations but also for the well-being of local residents. “Power is not just a business issue—it’s everyone’s issue. It’s fundamental to production, manufacturing, and even tourism,” he noted.
Addressing Cebu’s energy issue
Cebu’s prominence as a business center has earned it the title of “the next Silicon Valley” due to its thriving IT-BPM sector and the growing number of tech startups. Cebu is also home to key industries, making it a dynamic and attractive location for investments and growth.
To further strengthen its energy future, Cebu City Mayor Alvin Garcia recently discussed the region’s power needs at the Cebu Business Month Summit, where Therma Visayas Inc. (TVI), has announced plans to add 150 MW of capacity by 2028. Other projects include the 230-kilovolt Cebu-Bohol Interconnection Project, which was energized by the National Grid Corporation of the Philippines (NGCP) last November; and the Acciona Energía Solar Project, a 615-MW solar energy initiative that will span Toledo City, Dumanjug, and Daanbantayan.
Cebu, which accounts for half of Visayas’ energy use, faces growing power demands. The expansion is crucial for meeting these needs, ensuring stable electricity supply for the region’s expanding economy.
Sources:
https://tribune.net.ph/2024/06/19/doe-chief-underscores-continued-maximized-coal-fired-plants-use
https://www.bworldonline.com/economy/2024/11/26/637610/ngcp-activates-p19-76-b-cebu-bohol-link/
https://tribune.net.ph/2024/10/14/spanish-acciona-energia-to-develop-cebu-615-mw-solar-project