Need for energy sources critical looming power woes threaten Cebu growth

CEBU, Philippines - Cebu, being the main trade center of Central Visayas, accounts for the biggest share in energy consumption in the region and with the notable increase in economic activities in the province, the need for more energy sources is also critical.

The Department of Energy said commercial establishments -- these include both small and big businesses -- are the major consumers of electricity followed by households.

As of August this year, according to the DOE, Cebu island has a power generation capacity of 352,780 megawatt hours.

"So physically, kung unsay ma-generate nga power mao pud na ang ma-konsumo sa consumers (for the whole Cebu)," said Saul Gonzales, chief of Energy Industry Management Division of DOE Cebu field office.

He added that Cebu province has the highest power demand which has largely influenced the demand curve of the whole region

Gonzales pointed out the annual growth rate of power demand in Cebu has been increasing because of its recent major developments in various sectors such as real estate, business process outsourcing, construction, hotels, among others.

The Supply-demand Outlook for 2012-2030 released by the DOE revealed the Visayas' annual peak demand growth is at 4.45 to 5.28 percent, a result from the combined demand data submitted by various power distribution companies.

He added that although Cebu's current power supply is enough to meet the overall demand, but as economic activities hike, the need to seek more energy sources is also critical.

The energy sector needs more investments to augment the power supply in the region and so that possible power interruptions in the future will be avoided, he explained.

Considering Cebu's rising economic growth, the energy official stressed the power demand among establishments and household consumers would be increasing in the future.

Thus, generating enough supply of energy has always been crucial to sustain economic activities, he added.

Gonzales said Cebu has also been getting additional power from the Visayas sub-grid in Leyte to augment supply.

Based on the existing power plants, the Cebu sub-grid has an installed capacity of 974.2 megawatts and dependable capacity of 867.7 MW.

Data from the National Grid Corporation of the Philippines has showed that as of yesterday, the province's grid has a total system load of 768 MW and has a gross reserve of 169 MW.

The data has further showed that Cebu is importing 274 MW from Leyte and is supplying 169 MW to Negros. (FREEMAN)