AS an energy crisis looms in the Visayas, the Cebu economy is imperiled by blackouts. The Philippines stands out as the fastest-growing major Asian economy, recording a 5.5 percent growth for the first three quarters of 2023, surpassing China and Southeast Asian neighbors. Cebu, a vital part of this growth, rebounded with a 6.9% growth rate in 2022 and plays a significant role in Central Visayas’ economy.
Cebu hosts various economic zones, making it a hub for industries like electronics, optical equipment, and tourism. The sustained operation and expansion of these industries, along with the enjoyment of modern amenities, rely on stable electricity. However, recent Panay blackouts have highlighted vulnerabilities in the Visayan energy supply, with projections of a deficit exceeding 400MW.
The absence of new inland power plants in Cebu raises concerns about self-sufficiency in power generation, potentially leading to higher electricity costs. Former Cebu Chamber of Commerce and Industry president Felix Taguiam suggests that achieving self-sufficiency could alleviate the issue of costly electricity.
The Department of Energy (DOE) and the National Grid Corporation of the Philippines (NGCP) identify Cebu as a key site for large generation capacity additions. The connection of new transmission lines, such as Cebu-Negros-Panay and Mindanao-Visayas interconnections, promises to ease supply-side challenges.
The balance of the country’s rapid sustained growth hangs in uncertainty due to the potential power shortage, impacting not only Cebu but the Philippines as a whole. A shortage coupled with high electricity prices could lead to capital flight, business closures, lay-offs, and a decline in living conditions. The NGCP reports thin power reserves in Visayas, emphasizing the urgency of addressing these energy challenges.
