The Philippines aims to secure its power supply for the near and medium term. Cebu, its fastest-growing economic hub, is focusing on meeting energy demands from IT-BPM, Tourism, and Manufacturing industries.
At a recent energy forum in Makati City, Department of Energy (DOE) secretary Raphael Lotilla emphasized using existing coal capacity to sustain economic growth. The Philippines, ASEAN’s fastest-growing economy in 2023, is expected to stay ahead through 2024. Central Visayas, led by Metro Cebu, saw a 7.3 percent growth in 2023, topping all PH regions.
Cebu heavily relies on electricity imports from neighboring islands like Panay and Leyte, supplemented by power from Luzon. Up to 60 percent of its electricity comes from plants outside Metro Cebu. Following the Panay Blackout and expected shortages in 3 to 4 years, Gov. Gwendolyn Garcia urged building baseload power plants in Cebu to ensure reliable power for its growing economy.
Cebu’s rapid development, driven by its strategic location, strong infrastructure, thriving tourism, and BPO sector, significantly boosts national GDP and attracts investments.
Meanwhile, at the recent Cebu Business Month Summit, Acting Cebu City mayor Alvin Garcia outlined efforts to secure sufficient power supply. Aboitiz Power Corporation’s subsidiary, Therma Visayas Inc. (TVI), plans to add 150 MW by 2028.
Ronaldo Ramos, chief operating officer of AboitizPower Thermal Business Group, highlighted the need for timely permits to expand the Toledo City plant. He assured stakeholders of construction starting before end-2025 upon approval.
In April 2024, both Luzon and Visayas grids saw record peak demands, with Visayas peaking at 2,525 MW. Overloads triggered numerous Red and Yellow alerts across both grids.
Persistent tight power supply conditions in Luzon and Visayas, due to high peak demands, led to significant alerts from April 16 to May 23, 2024. Cebu, accounting for half of Visayas’ demand, leads in power consumption.
The DOE projects energy demand in Cebu Province to reach 1,400 MW in two years, outpacing supply by 2027 without new baseload power plants.
During the Makati Forum, Lotilla noted growth potential for solar and wind energy but cited their current modest share in the mix, well below the 35 percent goal in six years.
Coal currently meets 62 percent of the country’s energy needs. The DOE maintains a moratorium on new coal plants, except for committed, indicative, and expansion plans.
“We aim for adequate baseload capacities while boosting renewable energy in the mix,” Lotilla affirmed.
