As electricity demand is expected to increase annually, Cebu Governor Gwendolyn F. Garcia says it is crucial for Cebu and the broader Visayas region to establish a well-rounded energy portfolio that blends traditional and renewable energy sources, ensuring both reliability and cost-effectiveness.
The Department of Energy (DOE) projected that by 2050, the electricity demand in the region, including Mindanao, would surge to levels that would necessitate a substantial portion of the available capacity.
“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 Garcia.
The National Grid Corporation of the Philippines (NGCP) shared that Cebu’s current total plant capacity is 1,123 megawatts (MW). Despite this, the island experienced a peak demand of 1,223 MW in May 2024, resulting in a 100 MW shortfall, which is being mitigated through power interconnections with Luzon and Mindanao.
Looking forward, peak demand in the Visayas is expected to grow significantly, rising from 2,464 MW in 2023 to 2,864 MW by 2026, and reaching 10,678 MW by 2050. Cebu is projected to account for about half of this demand.
The Department of Energy (DOE) highlighted Cebu’s pivotal role as the power hub of the Visayas, serving as the conduit for electricity imports from Luzon and Mindanao before distributing it to the rest of the islands in the region.
Meanwhile, DOE assistant secretary Mario C. Marasigan said that the Visayas could have a dependable capacity of around 3,296 MW, which he said could only be enough to cater to the demand and the reserves. This meant that the region would be reliant on energy transfers from Luzon and Mindanao.
Aboitiz Power Corporation Thermal Group Chief Engineering and Projects Officer Don Paulino said that Luzon has maintained a stable reserve margin ranging from 300 MW to 700 MW, while Mindanao’s power reserve margin has stood at around 25% to 30%.
“The direction to have renewable energy is very important, not just from a climate change [lens], but also from a mix perspective… However, because the sun can only provide power from 10am to 2pm, what happens whenever there is no sun? For us to be more renewable, we need to be able to complement that with a proper baseload,” said Paulino.
