Energy deficient Cebu is forecast to require far more electricity than is fed the island at present and will run out of options in four years unless new power plants are built, a top official of Aboitiz Power Corp. said.
Ronaldo Ramos, Aboitiz Power Corp. chief operating officer, said it is imperative the deficiency is addressed quickly given that Cebu accounts for a substantial portion of electricity demand in the Visayas.
“Cebu province alone bears half of the region’s total demand, with Metro Cebu accounting for over half of the province-wide requirement,” said Ramos, quickly adding the requirement rises approximately 7 percent each year.
At a forum the Cebu Chamber of Commerce and Industry hosted, Ramos said Cebu needs to fortify its energy security to ensure sustained economic expansion averaging 7.3 percent last year alone, rated the fastest regional growth for the period.
Aboitiz Power said the Visayas grid sustained supply challenges as peak demand soared to an all-time high exceeding 2,500 megawatts in April this year, far more than capacity of only 2,200 MW.
Cebu, the power firm said, relies on neighboring islands for its power requirements and imports 60 percent of its electricity needs.
To help address the deficiency, AboitizPower looks to add 150 MW to the 340-MW Therma Visayas Inc. (TVI) coal-fired power plant in Toledo, Cebu.
Ramos also stressed the importance of baseload power plants like TVI to gain a balanced approach given the influx of variable renewable energy that add more intermittency to the grid.
Aboitiz Power also warned against a renewable-energy-at-all-costs approach and advocated instead for pragmatic solutions that allow a well-managed and just transition.
Aboitiz Power has set aside P73 billion in resources as capital expenditure this year, more than double the P26 billion in 2023.
It plans adding 3,700 MW in renewable energy to secure a capacity of 4,600 MW by 2030.
As part of the initial acquisition of 1,200 MW, renewable energy capacity of 176 MW comes online in the first six months this year that includes the 17-MW binary geothermal power plant in Tiwi, Albay and the 159 MW solar plant in Laoag, Pangasinan.
The construction of an additional 218 MW is in progress, Aboitiz Power said.
