AboitizPower vows to keep up with Cebu’s power needs

CEBU, Philippines — AboitizPower has reaffirmed its commitment to securing a reliable power supply in Cebu, keeping pace with the province's rapidly increasing energy demands driven by its booming economy.

At the recent Mandaue Chamber of Commerce and Industry (MCCI) Business Summit (MBM 2024) held at Marco Polo Plaza Cebu, Rhea Navarro, AboitizPower's Vice President for Project Development, answered Cebu business community’s concerns on energy sufficiency considering the influx of investors.

Navarro emphasized the company's recognition of the need for energy security in Cebu and the Visayas region to support their rapid economic growth.

“As Cebu’s economy thrives, the energy demand has surged, creating an unprecedented challenge that requires immediate and strategic action,” Navarro said.

The MBM 2024 is one of the annual flagship events of Mandaue Business Month (MBM 2024) organized by MCCI.

Navarro joined the powerhouse of speakers who underscored the importance of embracing technology, particularly artificial intelligence in advancing businesses in the new era.

According to MCCI president Mark Ynoc, power sufficiency is vital to support the growth of Cebu’s economy and attract more investors.

Amid the call to shift to sustainable energy generation, Navarro said AboitizPower recognized the need for tailored solutions considering the Philippines’ unique context, drawing lessons from developed nations that had to recalibrate their renewable energy (RE) goals.

“With the current grid limitations and ongoing red and yellow alerts, AboitizPower advocates for constructing a new embedded baseload power plant in Cebu within the next three to four years,” she explained.

Navarro reaffirmed AboitizPower’s support for the business sector and industry’s vision of a progressive Cebu, committing to a pragmatic approach that balances the province’s energy security and economic development.

“With reliable and affordable power, we can unlock Cebu's potential and secure a brighter future for generations to come,” she stressed.

Reflecting on AboitizPower’s over a century-long history rooted in Cebu, Navarro assured the Cebuano business community that the company is serious about supporting the province’s, and even the Visayas region’s growth through increasing its energy generation—both in baseload and RE power plants.

Navarro cited the National Grid Corporation of the Philippines (NGCP), noting that Cebu province now accounts for half of the region's total power demand, with Metro Cebu’s demand projected to grow by seven percent annually. This translates to an additional 120 MW (megawatt) of power needed annually.

AboitizPower's existing assets, including Therma Visayas (TVI) and East Asia Utilities, have played a crucial role in meeting Cebu’s energy needs, especially during the COVID-19 pandemic and subsequent economic recovery.

However, with the Visayas grid reaching a peak demand of 2,525 MW this year (2024), the company emphasized the urgency of addressing Cebu’s growing energy requirements.

“To ensure a stable energy supply, we must balance energy security, affordability, and environmental sustainability—a challenge known as the energy trilemma," said Navarro adding that while transitioning to renewables is essential, it cannot happen overnight.

A diversified energy mix, including reliable baseload power from coal-fired plants, is crucial to support the region's growth, Navarro added.