CERA warns of power risks as demand surges

CEBU, Philippines — Cebu Electricity Rights Advocates (CERA) is urging provincial authorities to overhaul the island’s energy strategy, warning that heavy reliance on waste-to-energy (WTE) projects has failed to provide grid stability and has heightened public safety risks at a time when power demand is accelerating.

Nathaniel Chua, convenor of CERA, said Cebu needs to shift toward firm, island-based baseload power plants as the backbone of its energy mix, arguing that waste-dependent generation cannot support a rapidly expanding economy. Electricity demand in Cebu is increasing by about 150 megawatts a year, while available reserves frequently fall below the 200-megawatt buffer considered necessary to prevent voltage instability.

“Public safety must come first,” Chua said, adding that while CERA supports diversifying the power mix and remains open to WTE as a supplementary option, such projects should not be treated as core solutions for grid reliability.

The warning comes as Cebu approaches what CERA describes as a critical energy phase in 2026, when the grid will require non-intermittent power insulated from fluctuations in waste supply and weather-related disruptions.

The collapse of the Binaliw landfill site recently highlighted those risks, halting energy production and resulting in fatalities after the site was effectively operated as an open dump rather than an engineered sanitary landfill.

Open dumping poses severe environmental and safety hazards because it lacks basic engineering controls such as liners, soil cover and structural reinforcement, CERA said.

The suspension of operations at Binaliw has exposed the fragility of waste-dependent energy models, where a single site failure can disrupt power supply entirely.

The Department of Energy is scheduled to launch a Green Energy Auction in 2026, but CERA said recent project failures underscore the need for stricter standards and clearer prioritization of dependable capacity.

The group is calling for the fast-tracking of island-based baseload projects to reduce Cebu’s dependence on inter-island submarine cables and to ensure round-the-clock power for critical infrastructure, including water pumping systems essential for fire safety.

CERA is also proposing a mandatory one-kilometer no-build zone around any landfill or WTE facility to prevent future tragedies. More broadly, it is pressing for a clear, time-bound roadmap toward energy independence that balances public welfare with the reliability businesses need to sustain growth.

Concerns over power supply are being echoed by Cebu’s business community, which is warning that tightening electricity availability—combined with political and regulatory uncertainty—is becoming a material risk to investment, particularly for manufacturers and export-oriented firms.

Electricity demand in Cebu is rising faster than new capacity is being added, driven by industrial expansion, population growth and the increasing power needs of commercial and digital enterprises, said Mark Anthony Ynoc, president of the Mandaue Chamber of Commerce and Industry (MCCI).

“Demand continues to grow faster than supply,” Ynoc said. “If this imbalance is not addressed soon, the risk of disruptions becomes a serious concern for investors who require reliability and predictability.”

Cebu, one of the Philippines’ main manufacturing and services hubs, depends heavily on the Visayas power grid, which business groups say already operates with thin reserve margins during peak periods. Delays in bringing new plants online or unexpected outages could raise operating costs and disrupt production schedules.

For Cebu, which has positioned itself as a growth engine outside Metro Manila, sustaining investor confidence may hinge on how quickly power supply gaps are closed—before energy constraints begin to erode the island’s competitiveness in the region.