The central economic hub of the Philippines, Cebu, is anticipated to experience power shortages in the next 3-4 years unless new power plants are established.
The president of the Cebu Chamber of Commerce and Industry (CCCI), Charles Kenneth Co, referred to NGCP data on Cebu’s power demands in an interview on radio station DWIZ, stating that the National Grid Corporation Philippines (NGCP) predicts a 7% annual increase in Cebu’s power needs. Should no new power plants be developed within the next 3-4 years, a potential power shortage looms.
This poses a significant challenge as the typical construction period for a new power plant is 3-4 years. If new power plants are not constructed, the economic center of the Central Philippines, Cebu, is expected to face power shortages in the next 3-4 years.
Cebu houses 64% of Central Visayas. The region experienced a growth of 7.6% in 2022, driven by the rapid expansion of Metro Cebu and its highly urbanized cities, such as Lapu-Lapu, which experienced 13.2% growth, Mandaue, which experienced 9.0% growth, and Cebu, which experienced 8.4% growth. This places the Philippines as the fastest-growing major Asian economy at present.
Energy Interconnections and Dependence
Cebu is currently benefitting from power supply interconnections with Negros, Leyte, and Mindanao, providing a reliable 30,000 KV, with additional contributions from Luzon. While this interconnected system ensures a consistent power supply, recent events such as the 3-day Panay-wide blackouts and prolonged blackouts following the catastrophic Typhoon Odette have raised concerns about the region’s energy dependence.
“Cebu lacks an independent power source; we are concerned about a potential Typhoon Odette-like scenario, where there would be a one-month power blackout caused by the dependence of Cebu on power sources external to the region,” said Co.
“While these interconnections are helpful to us, we would like to establish our autonomous power plants in Cebu so that we always have access to local power.”
Economic Implications and Loss Prevention
Co highlighted the economic implications of a power outage, drawing comparisons to the Panay New Year Blackouts. He emphasized that losses could easily double if a blackout like the one in Panay occurs in Cebu. While Panay lost Php 3-5 billion, Cebu could face losses of up to Php 10 billion.
The CCCI President pointed out that Cebu’s IT-BPM, Tourism, and Manufacturing industries, which are major contributors to the region’s GDP, could suffer significant losses during an extended power disruption.
Challenges in Achieving a Balanced Power Mix
Co highlighted the challenges in utilizing renewable energy sources like hydropower and solar due to Cebu’s geographical limitations, addressing the needs for a balanced power mix.
Co suggests that while renewable energy is beneficial, Cebu needs the natural resources for water or wind power like Ilocos due to its location in the middle of Visayas. As a result, the air currents in Cebu are not strong enough to make these forms of energy viable.
Co expressed support for installing a solar farm on Bantayan Island while acknowledging the potential environmental impact of large-scale solar farm development.
“We want to protect our forests. Although renewable ang solar, matakaw siya sa land area. We cannot be totally independent from the grid with this,” said Co.
Co emphasized the importance of a diverse energy mix, assuring environmentalists that Cebu is committed to exploring different renewable energy sources.
Importance of Proactive Planning
Co highlighted the necessity of proactive planning to mitigate potential power shortages in the future, using the blackouts during the Cory Aquino administration as a reference.
“It’s good to have a long-term view on this power situation. Hindi pwedeng last minute. I can remember the power crisis all over the Philippines during the Cory administration. We can’t afford for that to happen again.”
“NGCP gave an assurance to allocate power for Cebu. Okay pa tayo sa next few days. Ang kinakatakutan natin is yung next few years, kasi base sa forecast is in 4 years kukulangin na ang ating power supply.”
Cebu Governor Gwendolyn Garcia has been a strong proponent of increasing baseload power plants in Cebu. She emphasizes the island’s requirement for independent, adequate, and dependable power to support the region’s flourishing economy and expanding population.
Garcia stressed the significance of Cebu’s self-reliance and reliable power supply while also expressing gratitude to the national government for initiating the Mindanao-Visayas interconnection project (MVIP).
“We cannot be relying mainly on others for our power. We need to be self-sufficient, not in 2027 but now,” said the Cebu Govern