The recent Powering Cebu business forum underscored the critical need for a balanced mix of traditional and renewable energy sources to address the rising electricity demand in Cebu and the Visayas. Key attendees, including Cebu Governor Gwendolyn F. Garcia and AboitizPower executives, emphasized that reliable power is essential for economic growth.
Cebu’s electricity demand is increasing at a rate surpassing the national average, necessitating the significant enhancements in power generation capacity. The Department of Energy (DOE) projects that by 2050, the region will require a substantial portion of available power capacity to support ongoing economic expansion. Currently, the Visayas needs a dependable capacity of 3,296 megawatts to meet demand and maintain reserves while relying on energy transfers from Luzon and Mindanao.
At present, Cebu has a total capacity of 1,123 megawatts but experiences peak demands reaching 1,223 megawatts. This shortfall is supplemented through interconnections with Luzon and Mindanao. Projections indicate that peak demand in the Visayas will rise from 2,464 megawatts in 2023 to 10,678 megawatts by 2050, with Cebu expected to account for nearly half of this demand.
Cebu serves as a vital hub for electricity distribution across the Visayas, receiving imports from other regions. The influx of variable renewable energy sources like solar and wind necessitates a stable baseload for reliability. AboitizPower representatives noted that while increasing renewable energy is crucial for sustainability, it must be complemented by reliable baseload sources to address periods without sun or wind.
The DOE has indicated that power producers may construct coal-fired plants exempt from the existing coal moratorium to meet baseload requirements. There are currently 51 potential coal projects with a combined capacity of 20,300 megawatts approved prior to the moratorium policy enacted in 2020. One such project is planned for Cebu to help satisfy the area’s growing baseload needs.
AboitizPower is committed to enhancing its renewable energy portfolio while maintaining a balanced approach that includes thermal power generation. The company aims for a 35% share of renewable energy in its power generation mix by 2030 and continues exploring opportunities across various renewable sources.
For more information about AboitizPower and its initiatives, please contact Abbey Tomas, Assistant Vice President for Public Relations at Aboitiz Power Corporation.