COMMENTARY | What happens when supply meets demand: Power-independent Cebu

MANILA, Philippines — Known as the “Queen City of the South,” Cebu has overcome its long-standing challenge of an unreliable power supply, paving the way for unprecedented development.

With ample power resources, the region is experiencing transformative infrastructure projects and expanding industries, promising thousands of new jobs and economic growth.

“In the coming three to four years, Cebu and its neighboring provinces are assured of an unprecedented surge in development,” former Cebu Chamber of Commerce and Industry (CCCI) president Charles Kenneth Co said.

Infrastructure development

Cebu is preparing for major infrastructure improvements to alleviate traffic and boost economic growth. Projects include widening Sergio Osmeña Jr. Blvd., M.J. Cuenco Rd. and N. Bacalso Rd.

The road closure will extend from P. Del Rosario St. and N. Bacalso Ave. to M.J. Cuenco Ave. in front of Plaza Independencia, announced by the Cebu City Transportation Office (CCTO) assistant department head Kent Francesco Jongoy.

These efforts are part of a broader initiative to enhance the region’s transportation efficiency.

The construction of the third Mactan Bridge is another critical project designed to ease traffic and stimulate economic growth by improving access to key areas for tourism and industry.

Future infrastructure plans also include the development of a subway system and the expansion of the Cebu International Airport. These initiatives are expected to attract more investments, further supporting continuous economic growth in the region.

Tourism expansion

Cebu—famous for its pristine beaches, culture and nightlife—is set to boost its tourism sector. The city is developing hotels, resorts and recreational facilities to accommodate the growing number of visitors.

Notable developments include the Sheraton Cebu Mactan Resort, Radisson Blu Cebu and the Movenpick Hotel Mactan Island Cebu. Additional projects like the Mandani Bay Quay and Skywaterpark Cebu will offer various recreational facilities.

The city is enhancing its transportation networks, including the Mactan-Cebu International Airport and the Cebu-Cordova Link Expressway, to improve connectivity. Efforts are also underway to preserve Cebu's rich cultural and historical heritage.

Industrial growth

With a reliable power supply, Cebu’s industrial sector is set to expand significantly. Industries can increase production, attract more investors and create job opportunities, driving economic development and improving the region’s standard of living.

Upgrades to Cebu’s power infrastructure, such as the Cebu-Cordova Link Expressway and Cebu Bus Rapid Transit system, will enhance transportation and logistics.

The expansion of Cebu’s industrial sector will generate new employment opportunities, benefiting residents and contributing to poverty reduction. A focus on aligning education and training programs with industry needs will support this growth.

Power independence

To mitigate this challenge, initiatives such as the Third Transmission Voltage Interconnection Project and the expansion of the Therma Visayas Inc. (TVI3) Toledo Power Plant by AboitizPower is in motion to address Cebu’s long-standing power issues.

The forthcoming addition of 169MW baseload capacity from TVI3 in Toledo, Cebu is expected to diminish Cebu’s reliance on imported electricity from other regions, thereby enhancing energy security and minimizing susceptibility to external factors.

Co mentioned that according to National Grid Corporation Philippines (NGCP), “Cebu’s power demand is projected to increase by 7% annually. Without the construction of new power plants within the next three to four years, there may be an imminent power shortage,” Co said.

TVI one of Cebu’s largest power plants, can provide a reliable and abundant power supply, essential for sustaining economic growth. Cebu is now well-positioned to become a leading economic and cultural hub in the Philippines, moving confidently toward a brighter and more prosperous future.

Realizing Cebu’s full potential requires supplying the energy needs of the present and future. Sustainable economic success in the region is ensured by a steady supply of electricity, which supports the growth of the industrial sector, tourism and infrastructure.

As Cebu boldly advances toward a more promising future, the guarantee of stable energy supplies will remain crucial to its prosperity.

About the author: Dana Gabrielle B. Tautho is a PRC-licensed geologist and environmental planner, holding a Master's degree in Urban and Regional Planning from the University of the Philippines. Dana specializes in geology, developmental work and environmental and social consulting. She has been deeply involved in several environmental consulting roles, including environmental impact statements and geohazard assessments across multiple regions.

Editor's Note: This Commentary is published by the Advertising Content Team that is independent from our Editorial Newsroom.