CEBU CITY – Sufficient power must be ensured in a place with a fast-rising economy like Metro Cebu.

RONALDO Ramos, chief operating officer for operated assets of the AboitizPower Thermal Business Group, speaks during the Good Design, Good Business Summit of the Cebu Business Months 2024 on Friday, June 14. (Calvin D. Cordova)

This was the call of an industry leader who noted that along with the booming economy in Metro Cebu led by economic hubs Mandaue, Lapu-Lapu, and Cebu cities is the increasing power demand.

Ronaldo Ramos, chief operating officer for operated assets of the AboitizPower Thermal Business Group, said power outages have also become a common occurrence in Cebu.

“Businesses in Cebu have reported an average of three to four power outages per week, each lasting between one to two hours,” Ramos said during the Good Design. Good Business Summit of the Cebu Business Months (CBM) 2024 on Friday, June 14, at SM Seaside City.

According to Ramos, the Visayas grid recently encountered an unprecedented surge in demand, reaching a record-high 2,525 megawatts that signals “a clear and significant upward trend in electricity consumption.”

An overloaded power system struggling to meet increasing demand has caused frequent red and yellow alerts, Ramos said.

Ramos said addressing unsteady power supply in Cebu and Central Visayas is crucial as it may prevent the region from achieving its full economic growth potential.

Central Visayas registered the fastest-growing economy among the Philippines’ 17 regions in 2023, with an impressive cumulative growth rate of 7.3 percent.

Cebu’s rapid development is driven by its strategic location, robust infrastructure, thriving tourism industry, and burgeoning business process outsourcing or BPO sector. This growth significantly contributes to the national GDP, creating jobs, attracting foreign investment, and promoting regional prosperity.

Aboitiz Power Corp. currently operates a 340-megawatt (MW) Therma Visayas Inc. (TVI) coal plant in Toledo City, western Cebu. The company is looking to expand the capacity of the facility by 150 MW to address the persistent need for power.

“Our diverse energy portfolio affirms our belief that there is no one-size-fits-all solution, nor does any single organization hold all the answers and solutions. Together, we possess the power to shape a future where we can all proudly say we played a part in it,” Ramos said.

Ramos announced that Aboitiz Power is planning to start construction of the third coal plant in Toledo City next year, with completion slated in 2028.

Ramos said Therma Visayas Inc. (TVI) is securing bids from equipment suppliers and awaiting the environmental compliance certificate from the Department of Environment and Natural Resources and system impact study from the National Grid Corp. of the Philippines (NGCP) before proceeding with the construction of the third coal plant.

Acting Cebu City Mayor Alvin Garcia said he believes that electricity shortage is something that the city will not experience in the near future.

Nonetheless, the city is taking steps to ensure that the city will have sufficient power supply.

“We have to invite investments coming from the private sectors, especially the power generation companies who are already here. We only have to let them expand their capacity so that they can really supply power to Cebu Island,” Garcia said.