Cebu aligns with Phl energy security goals

The booming IT-BPM, tourism, and manufacturing industries in the Southern part of the country are experiencing their energy demands, as the country’s fastest-growing economic hub, Cebu, is aligning its resources to meet the power needs of the said industries.

At a recent energy forum in Makati City, Energy Secretary Raphael Lotilla emphasized the DOE’s support for tapping into existing coal capacity to sustain the country’s economic growth.

The Philippines currently enjoys the title of ASEAN’s fastest-growing economy in 2023 and is expected to sustain this through 2024.

Central Visayas and at its heart, Metro Cebu, lead the country’s 17 regions registering a 7.3 growth rate in 2023.

According to Secretary Lotilla, the Philippines still possesses over 6,300 megawatts of dependable coal capacity aged 10 years or younger.

“Maximizing the use of existing energy infrastructure avoids imposing additional cost burdens on both the economy and consumers,” said Lotilla.

Further, Sec. Lotilla said that while he sees a “massive room” for growth for renewable energy, particularly solar and wind, its current contribution to the power mix remained sluggish at 22 percent and far from the goal of hitting 35 percent in six years.

On the other hand, coal supplies 62 percent of the country’s needs.

While the DOE continues to maintain a moratorium on the development of new coal plants, according to Lotilla, “exemptions were in place “for committed, indicative, and expansion plans.”

“We do not set aside our responsibility to ensure adequate base load capacities in conjunction with our push to increase Renewable Energy’s share in the power mix,” said Lotilla.

Cebu isolated

Cebu is said to be largely dependent on importing electricity from neighboring islands such as Panay and Leyte supplemented by Luzon.

Up to around 60 percent of its electricity comes from power plants outside Metro Cebu.

In the wake of the great Panay Blackout earlier this year, and amidst a shortfall projected for Cebu in the next three to four years, Cebu Governor Gwendolyn Garcia emphasized the need to build baseload power plants in Cebu to meet the province’s demand for reliable power to support its rapidly growing economy and population.

“We cannot be relying mainly on others for our power. We need to be self-sufficient, not in 2027 but now,” said Garcia.

Cebu’s rapid development is driven by its strategic location, robust infrastructure, thriving tourism industry, and burgeoning business process outsourcing (BPO) sector.

The growth significantly contributes to the national GDP (Gross Domestic Product), creating jobs, attracting foreign investment, and promoting regional prosperity.

Meanwhile, acting Cebu City Mayor Alvin Garcia during the Cebu Business Month Summit held at the SM Seaside City, said the city is taking steps to ensure that the city will have sufficient power supply.

“We have to invite investments from the private sectors, especially the power generation companies already here. We only have to let them expand their capacity to supply power to Cebu Island,” Garcia said.

At the same forum, Aboitiz Power Corporation, through its subsidiary Therma Visayas Inc. (TVI), announced its readiness to generate an additional 150 megawatts (MW), which will be operational by 2028.

According to Ronaldo Ramos, COO for operated assets of the AboitizPower Thermal Business Group, the target completion of the brownfield expansion plant in Toledo City will depend on the timely approval and release of the prerequisite permits.

Ramos, who spoke on the subject of Energy Security at the Cebu Business Month Summit, assured that once all these requirements are approved, the company will start the construction before end-2025.