GOVERNOR Gwendolyn Garcia of Cebu has confidently assured investors that the province’s power supply will remain stable in the coming years, even with the anticipated surge in investments. Her reassurance addresses concerns from business leaders who worry that Cebu’s ambition to become a major investment hub, including its goal to be the next Silicon Valley, might be at risk without the timely establishment of additional power plants.
“There is no need to worry,” Governor Garcia asserted, responding to concerns about Cebu’s power supply. She highlighted several upcoming power projects that are poised to maintain a stable supply across the island. Among these are three solar farms in Daanbantayan, Dumanjug, and Toledo, as well as the expansion of Therma Visayas Inc. (TVI) in Toledo City, which will serve as a critical baseload power source.
In addition to ensuring a reliable power supply, Governor Garcia emphasized that the development of solar power facilities within the province could potentially lead to lower electricity rates for Cebu residents. Last October, the Cebu Provincial Government signed a Memorandum of Understanding (MOU) with Spain-based Acciona Energia Global, S.L. and Makati-based Freya Renewables Inc., to construct a 150-megawatt solar power plant in Daanbantayan, northern Cebu.
Governor Garcia reassured the Business Process Outsourcing (BPO) sector and other high-power-consuming industries that they “need not worry” about future energy shortages. The recent concerns voiced by Cebu’s business community highlight the importance of accelerating efforts to secure additional power supply agreements to maintain the province’s attractiveness to investors.
“The lack of cheap, reliable, and abundant electricity is a significant challenge and a risk to Cebu’s dream of becoming a global center for high technology and innovation,” said Marc Ynoc, president of the Mandaue Chamber of Commerce and Industry (MCCI). He noted that a potential power shortage in Cebu could have a ripple effect, weakening the region’s entrepreneurial ecosystem and making it less attractive to venture capital and foreign direct investors.
Ynoc explained that electricity costs account for nearly 40 percent of operational expenses in the manufacturing sector, making it a critical factor in investment decisions. Business leader Steven Liu also highlighted the need for continuous investment in new baseload power plants to meet the province’s medium-term energy needs, stressing that Cebu’s power situation could influence decisions on new investments.
Cebu’s economy, heavily reliant on BPOs, manufacturing, tourism, and other industries, depends on a stable and sufficient power supply. The Department of Energy (DOE) projects that energy demand in Cebu Province will reach around 1,400 MW within the next two years, necessitating new baseload power plants to ensure supply stability beyond 2027.
The Visayas region currently has a generating capacity of 2,454 MW and a system peak demand of 2,153 MW, leaving a narrow margin of only 239 MW as power reserves. Cebu province alone accounts for half of the region’s total demand, with Metro Cebu, under the Visayan Electric franchise area, contributing over 500 MW.
In light of Central Visayas’ status as the fastest-growing regional economy in the Philippines, with a growth rate of 7.3 percent in 2023, Governor Garcia has reiterated her support for establishing additional baseload power plants in Cebu. She emphasized the importance of securing sufficient and reliable power to sustain the island’s robust economy and growing population.
The Governor remains optimistic that the upcoming power projects will not only strengthen Cebu’s power supply but may also enable the province to export electricity to neighboring regions.
