Biz leaders: Stable power vital to attract investments

CEBU, Philippines — Cebu’s business leaders are renewing their call for guaranteed power stability in the province to attract more investments, which in turn would boost employment opportunities throughout the province.

Mandaue Chamber of Commerce and Industry (MCCI) president Mark Ynoc emphasized the critical role of power in the ongoing recovery from the lingering impacts of the pandemic and other challenges.

Ynoc pointed out that additional power plants are necessary to accommodate anticipated investments and support the growing population.

“When there is a pressing need for power then we need additional generation capacity and infrastructure,” Ynoc added.

The Department of Energy (DOE) projects that the energy demand for Cebu Province will reach around 1,400 MW in the next two years and will outpace supply by 2027 unless new

baseload power plants are constructed.

Visayas has a generating capacity of 2,454MW and a system peak demand of 2,153MW or a margin of only 239MW as power reserves.

Cebu province accounted for half of the region’s total demand and within Cebu province, Metro Cebu, falling under the Visayan Electric franchise area, contributed to over 500 megawatts, representing more than half of the province-wide demand.

Records showed that Central Visayas is the fastest-growing regional economy in the Philippines, with a growth rate of 7.3 percent in 2023, or an estimated P1.38 trillion, up from P1.29 trillion in 2022.

Charles Kenneth Co, past president of the Cebu Chamber of Commerce and Industry (CCCI), highlighted the importance of a reliable power supply in Cebu, stating, “Having more power is always better.”

Likewise, MCCI past president Steven Liu warned that the power situation of Cebu will be part of the consideration of any new direct investments.

“For now, while our power supply backup seems to be thinning, we are supported by the upcoming expansions of baseload and new renewable energy plants (primarily solar plants), coming onboard in the immediate next few years,” Liu noted.

Moreover, in consideration of the overall demographic situation, “we should continue to be allowed to invest and build new baseload power plants to cover our medium-term energy requirements,” added Liu.

According to Liu Cebu’s economy relies more on BPOs(Business Process Outsourcing) manufacturing, tourism, and industries. These industries continue to provide for their constituents. “Hence, a stable and sufficient power supply is a must for its survival.”

Earlier, Cebu Governor Gwen Garcia stressed the immediate need to tackle the power supply issue, saying “We cannot continue to depend primarily on others for our power. We must achieve self-sufficiency, not by 2027, but right now.”

For his part, Cebu City Mayor Alvin Garcia said he believes the city will not experience an electricity shortage shortly. Nonetheless, the city is taking steps to ensure that it 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.

National Grid Corporation of the Philippines (NGCP) assistant vice president and head for public affairs, Atty. Cynthia Perez-Alabanza said in an earlier interview that as power consumption continues to rise with the full re-opening of the economy after the pandemic, “all the more Cebu needs more power plants.”

Even amidst the pandemic-induced slowdown, Alabanza said there was a discernible uptick in power demand. “Now, with the economy fully reopening, we are witnessing a substantial surge in power requirements.”

“All roads lead to Cebu when we talk about power consumption in the Visayas,” said Alabanza.

In response to this urgent issue, The Freeman, a publication of the PhilStar Group, will host a half-day power forum titled “Powering Cebu: A Cebu Energy Talk” on November 6, 2024, at the Waterfront Cebu City Hotel and Casino from 1:00 PM to 5:00 PM. The event will bring together key stakeholders from the business, academic, and government sectors.

Cebu Governor Garcia will deliver the keynote address, with DOE Assistant Secretary Mario Marasigan also scheduled to speak. — (FREEMAN)