Aboitiz Power Corporation, through its subsidiary Therma Visayas Inc. (THI), is ready to provide an additional 150 megawatts (MW) to the Visayas grid by 2028 via a third coal-powered plant to be built in Toledo. This initiative aims to address the recent power shortage issues in Cebu, as requested by business leaders and government officials.
The company’s Chief Operating Officer for operated assets of the AboitizPower Thermal Business Group, Ronaldo Ramos, stated that the construction of a third coal facility will commence before the end of 2025, subject to the approval and release of necessary documents. These include the environmental compliance certificate (ECC) from the Department of Environment and Natural Resources (DENR), the completion of bidding from original equipment suppliers, and a system impact study from the National Grid Corporation of the Philippines (NGCP).
Ramos, who was present at the Cebu Business Month’s (CBM 2024) Good Design, Good Business Summit, assured stakeholders that once all requirements are met, the company will proceed with the construction of the new coal power plant before the end of next year. The power facility is expected to be operational in 4 years.
Soaring Demand
The Department of Energy (DOE) forecasts a surge in energy demand for Cebu Province, which is expected to reach approximately 1,400 MW within the next two years. This risks outpacing the region’s existing supply by 2027 unless new baseload power plants are constructed.
Currently, the Visayas region holds a generating capacity of 2,454MW, with a system peak demand of 2,153MW. This leaves a slim margin of only 239MW as power reserves. Cebu province is responsible for half of the region’s total demand, with Metro Cebu accounting for over 500 MW.
Central Visayas has been recognized as the fastest-growing regional economy in the Philippines in 2023, with a growth rate of 7.3 percent in 2023, amounting to an estimated P1.38 trillion. This is up from P1.29 trillion in 2022.
A Diversified Solution
Aboitiz Power’s TVI currently operates a 340-MW coal plant in Toledo City. While the expansion of this facility means using more coal, the new brownfield plant will be equipped with the same Circulating Fluidized Bed (CFB) technology found in the original plant. The CFB is a “green coal” solution that will lessen emissions during operations.
Ramos emphasized the importance of a diverse energy portfolio. “Our diverse energy portfolio affirms our belief that no one-size-fits-all solution exists, nor does any single organization hold all the answers and solutions,” he said. “Together, we possess the power to shape a future where we can all proudly say we played a part in it.”
Calls to Action
Cebu Governor Gwen Garcia earlier stressed the urgency in addressing the province’s power supply issue, saying “We cannot continue to depend primarily on others for our power. We must achieve self-sufficiency, not by 2027, but right now.”
Business leaders in Cebu, among them Cebu Chamber of Commerce and Industry president Charles Kenneth Co and Mandaue Chamber of Commerce and Industry president Mark Ynoc, have been actively advocating for power generation companies to invest in additional power plants, recognizing the vital role of power in the ongoing economic recovery from the pandemic.
Ramos acknowledged the challenges posed to businesses by frequent power outages. He noted the strain on the Visayas grid, which has recently experienced a record-high surge in demand to 2,525 MW, and stressed that addressing the unreliable power supply in Cebu and Central Visayas is crucial to unlocking the area’s full economic potential.
Energizing the Economy
Cebu’s rapid growth is fueled by its strategic location, thriving infrastructure, booming tourism, and flourishing business process outsourcing (BPO) industry. This growth significantly contributes to the national gross domestic product (GDP), generating employment, attracting foreign investment, and fostering regional prosperity.
While acting Cebu City Mayor Alvin Garcia believes the city won’t face power shortages anytime soon, the local government is taking steps to ensure adequate supply. “We have to invite investments from the private sectors, especially the power generation companies already here. We only have to let them expand their capacity to supply power to Cebu Island,” Garcia said.
As the economy fully reopens after the pandemic, power consumption continues to rise, highlighting Cebu’s pressing need for more power generation facilities, according to NGCP assistant vice president and head for public affairs Atty. Cynthia Perez-Alabanza. “All roads lead to Cebu when we talk about power consumption in the Visayas,” she said.
Source: Third Toledo coal plant to add 150 megawatts to Visayas grid