Leaders in Cebu and the Visayas region have been advised during a business forum to develop a balanced mix of traditional and renewable energy sources to ensure reliable and affordable power as electricity demand rises annually.

“The power demand of Cebu year-on-year is exceeding the national average. If we are to even be able to match the phenomenal growth that Cebu is experiencing right now, we would have to be very serious about generating more [power] capacity,” said Cebu Governor Gwendolyn F. Garcia during The Freeman's “Powering Cebu” business forum.

With Cebu and the Visayas projected to sustain high growth, the Department of Energy (DOE) expects the region’s electricity demand to reach a significant portion of available capacity by 2050, alongside Mindanao.

“For the Visayas, we could have… dependable capacity of 3,296 megawatts. That will just be sufficient to provide the demand and the appropriate reserves. That means we will continuously rely on the transfer of energy from Luzon and Mindanao. However, take note that Mindanao is also growing fast,” said DOE Assistant Secretary Mario C. Marasigan.

“Luzon sits at a relatively comfortable reserve margin of 300 to 700 megawatts. Similarly, Mindanao has around a 25-30% power reserve margin. If you compare that to Visayas, Visayas is around 8%. So you can see the stark contrast between the Luzon, Visayas, and Mindanao grids,” added Aboitiz Power Corporation (AboitizPower) Thermal Group Chief Engineering and Projects Officer Don Paulino.

The National Grid Corporation of the Philippines (NGCP) indicated that Cebu’s total plant capacity today is 1,123 megawatts. With peak demand going as high as 1,223 megawatts, as was recorded in May 2024, Cebu currently augments the shortfall of 100 megawatts through interconnections to Luzon and Mindanao.

Forecasts indicate that peak demand in the Visayas will increase from 2,464 megawatts in 2023 to 10,678 megawatts by 2050, with Cebu expected to account for nearly half. As the primary hub for power distribution in the Visayas, Cebu receives electricity imports from Luzon and Mindanao to supply the region.

With more renewable sources like solar and wind being introduced, AboitizPower’s Paulino stressed the need for a stable baseload to manage renewable variability. “For us to be more renewable, we need to be able to complement that with a proper baseload,” he explained.

The DOE clarified that coal-fired plants exempt from the coal moratorium, approved before 2020, may still be built. These plants, including one planned for Cebu, are intended to bolster Cebu’s baseload capacity to meet demand.