All Eyes on Cebu as it Makes Bold Moves Toward Energy Security

On November 6, 2024, Cebu was the center of attention for the country’s energy sector as it hosted  “Powering Cebu: A Cebu Energy Talk.” The event was organized by The Freeman, the Cebu branch of The Philippine Star. Industry stakeholders came together to find solutions for the country’s urgent demand for more energy. In the forum, the pivotal role Cebu’s energy security in fueling economic growth and attracting foreign investment was discussed by both public and private sector officials.

“Cebu province alone already corners half of the total energy demand in Central Visayas while Metro Cebu accounts for more than half of the province-wide demand. That puts much pres -sure on the regional grid to keep supplying energy for Cebu’s growing needs,” said Phil star Media Group president and chief executive officer (CEO) Miguel G. Belmonte in his opening speech.

President Mark Ynoc of The Mandaue Chamber of Commerce and Industry (MCCI) and past president Charles Kenneth Co of the Cebu Chamber of Commerce and Industry (CCCI) both emphasized that the stakes of Cebu’s economy depend on stable power due to its primary industries of Business Process Outsourcing (BPO), manufacturing, and tourism that are heavily reliant on energy. Due to its rapid economic growth, the expansion of power generation capacity is a priority.

“More power supply is always better,” said Co.

“When there is a pressing need for power then we definitely need additional generation capacity and infrastructure,” Ynoc added.

Senator Miguel Zubiri also underscored that “Constant power interruptions have widespread effects on our communities, extending beyond mere inconvenience. They affect not only businesses, livelihood and the delivery of basic services to the people, but they have dire and far-reaching consequences on the lives of citizens.”

The data from Department of Energy (DOE) research shows that the power demand of Cebu Province is predicted to reach 1,400 MW by 2026. This puts the region at risk of an energy shortfall by 2027 unless additional baseload plants are developed. Visayas’ current generation capacity is only at 2,454 MW, with almost half of the demand from Cebu alone.

Steven Liu, MCCI’s past president, stated that Cebu’s power supply is to be augmented by various ongoing renewable energy projects, such as solar plants, but notes that in order to secure the region’s energy future, continued investments in both traditional and renewable energy sources must continue.

Cebu City Mayor Alvin Garcia and Governer Gwen Garcia have informed the public about the risks involved should Cebu lack energy security. They urge stakeholders to bolster the autonomy of the country’s regions in energy production. The National Grid Corporation of the Philippines (NGCP) endorses this movement, emphasizing the large rise in power demand after the pandemic.

Governor Garcia adds, “With the non-availability of adequate power, we might as well just stagnate and be left behind by other countries.”

Following a 7.3% regional growth rate in 2023, Cebu’s economy continues to grow. The forum provides a timely platform for reaching effective strategies to supply its power needs. With efficient collaboration between government and private stakeholders, Cebu gives itself a fighting chance to uphold its energy infrastructure to support itself for the future.

Source: Biz leaders: Stable power vital to attract investments