Forum tackles growing energy demand: Cebu needs reliable power

CEBU, Philippines — In the face of rising fuel costs, global supply shakeups and mounting climate pressure, how can Visayas keep the lights on without dimming growth?

As THE FREEMAN and BANAT NEWS convened the Power Forward Visayas 2026 at Seda Ayala Hotel, yesterday, industry leaders, policymakers, and stakeholders tackled a critical forum to confront the realities shaping today’s energy landscape.

The forum gathered major players across the energy sector from power generators and distributors to government regulators and business leaders aiming to also map out solutions for a rapidly growing region.

What Cebu needs: reliable power

Across all panels, one message rang clear - reliability remains the backbone of Cebu’s energy future.

In his welcome address, Lucien Dy Tioco, Executive Vice President of Philstar Media Group, underscored the urgency of addressing the country’s energy challenges as he opened the Power Forward Visayas 2026 forum.

He cited the recent declaration of a national energy emergency by Ferdinand "Bongbong" Marcos Jr. through Executive Order No. 110. He noted that the directive came amid tensions in the Middle East, which continue to drive volatility in global fuel markets and expose vulnerabilities in the Philippines’ energy supply.

Tioco said that while conditions have somewhat stabilized, the country remains at the mercy of fluctuating global prices, making it critical to confront deeper, structural issues in the energy sector.

“The hope is that the conversations we will have today (April 24) will move beyond short sighted conversations about our immediate circumstances to look at the Philippine energy system in its entirety,” said Tioco.

Governor Pamela Baricuatro, in her keynote speech, emphasized that the province’s energy demand is increasing by around 150 megawatts every year, driven by expanding industries, tourism, and investments.

“Cebu is growing fast… our demand for power is rising—fast,” she said.

Baricuatro announced plans to develop a provincial energy master plan aligned with the Philippine Energy Plan 2023–2050.

Among the initiatives is a partnership with Acciona Energia Philippines for a 150-megawatt peak solar power project expected to come online within the year.

The province is also exploring opportunities in wind, hydro, and other renewable technologies, while revisiting local resources such as the Algeria oil field.

“Our goal is clear: a Cebu that is energy-secure, climate-resilient, and future-ready,” Baricuatro said.

Gaps and glitches

Rhea Navarro, Regional Chief Operating Officer of AboitizPower’s Transition Business Group, highlighted the growing imbalance between supply and demand, noting that energy consumption continues to outpace capacity expansion in the Visayas.

“The biggest challenge really is keeping pace with the power demand,” Navarro said, pointing to the region’s accelerating economic activity.

Jay Joel Soriano of First Gen Corp echoed this concern, stressing the urgency of expanding capacity to meet the needs of a power-hungry economy.

“How do we add more capacity to meet the growing demand?” Soriano said.

He added that sustaining momentum depends on making “a series of good decisions,” particularly on the country’s energy mix.

He cited that currently, the Visayas energy profile stands at roughly 45 percent renewable energy and 55 percent fossil fuels, an encouraging position compared to other regions, but still facing constraints.

For the Department of Energy (DOE), policy alignment remains a critical hurdle.

DOE Visayas Director Renante Sevilla said that while supply is currently stable and the grid interconnected, the challenge lies in policy coordination, especially amid global uncertainties such as geopolitical conflicts.

Under the Philippine Energy Plan, the government is targeting 40 to 50 percent renewable energy share by 2040.

He also underscored that recent policy reforms aimed to entice more investors in the renewable energy sector, particularly the allowance of full foreign ownership in renewable energy projects.

Previously limited under a 60-40 ownership structure, the shift to 100 percent foreign participation is expected to accelerate project development and boost investor confidence, in line with the liberalization efforts supported by the DOE.

The urgency of the issue is amplified by Cebu’s rapid economic growth.

Despite this growth, Cebu remains heavily reliant on imported power, particularly from Luzon and Leyte.

NGCP data shows that around 60 percent of Cebu’s electricity supply is sourced externally, making it vulnerable to supply disruptions.

The province’s central role in the Mindanao-Visayas Interconnection Project (MVIP) enhances grid stability, but also underscores its reliance on inter-island power sharing.

Felix Taguiam, Regional President of the Philippine Chamber of Commerce and Industry, described Cebu’s economy as “power hungry,”

"The economy of Cebu is power hungry. The economy is in turmoil now because of this fuel crisis," said Taguiam.

Business leaders warned that this dependence contributes to high electricity costs, which in turn affects competitiveness.

Mark Anthony Ynoc, former president of the Mandaue Chamber of Commerce and Industry, noted that Cebu businesses eat up 40 to 50 percent of the region’s power demand, making it one of the largest consumers in the country.

“We are lagging behind in competitiveness because of the high cost of power,” Ynoc said.

For industries like IT-BPM, the stakes are even higher.

Aseem Roy, president of the Cebu IT-BPM Organization, said power is the third largest cost component in operations, with outages posing significant financial risks.

One of the most debated topics during the forum was the potential role of nuclear energy in the Philippines’ future energy mix.

Sevilla said that the government is targeting at least 1,200 megawatts (MW) of nuclear capacity by 2032, with longer-term projections reaching around 4,800 MW in the following years as part of efforts to strengthen baseload power and ensure energy security.

He noted that preparations for its realization are already underway through the creation of multiple working clusters focused on different aspects of nuclear energy development, including information campaigns, technical planning, and site assessment.

A major component of the initiative is public awareness, with students identified as a key target group in ongoing nationwide information drives.

The government also acknowledged ongoing assessments of the long-defunct Bataan Nuclear Power Plant, once considered the country’s first nuclear power project.

While technically still deemed usable after rehabilitation studies, Sevilla noted that its systems are now outdated, and full rehabilitation would require significant upgrades.

Various sectors expressed concerns not only about reliability but also affordability.

Melanie Ng, representing micro, small, and medium enterprises (MSMEs), said businesses are primarily focused on lowering operational costs.

“Top of mind is always lowering the cost of doing business,” she said, stressing the need for more information drives on energy efficiency.

Meanwhile, educational institutions also feel the pressure.

Corporate lawyer from the University of Cebu, Atty. Emi Rose Parcon pointed out that power affordability directly affects around 60,000 student households linked to the university.

The consensus among stakeholders is clear: reliable and affordable electricity is essential not just for economic growth, but for social stability.

The forum also reflected on lessons learned from recent energy challenges, particularly amid global fuel volatility.

Sandulan shared that during supply constraints, the grid prioritized renewable sources such as geothermal energy, followed by coal, while minimizing the use of oil-based plants.

On the distribution side, Visayan Electric (VECO) President and General Manager Mark Anthony Kindica assured that efforts are ongoing to maintain network reliability, even during crises.

“We make sure to adhere to government advisories to mitigate impacts,” he said.

Meanwhile, Volt Cruz of AboitizPower added that fuel efficiency plays a major role in controlling electricity costs.

“If we use less fuel to produce the megawatts we need, that ultimately translates to lower costs for consumers,” he explained.

Shell Energy Philippines President and CEO Bernd Krukenberg said that while the Visayas is positioned for growth, actual electricity demand has not always matched earlier projections.

He noted that external factors, including geopolitical tensions in the Middle East, continue to contribute to volatility in global energy markets and affect investor sentiment.

Krukenberg emphasized that the energy sector should not only focus on meeting demand but also on enabling it.

This, he said, requires broader economic conditions such as job creation, improved purchasing power, and stronger industrial attractiveness for emerging sectors like data centers, which are increasingly looking at the Philippines as a potential location.

A key concern raised was the need for regulatory stability to encourage long-term investments.

Krukenberg pointed out that energy projects typically span 15 to 20 years, making consistent and predictable policies essential for investor confidence. He warned that sudden policy shifts or uncertainties in market mechanisms can increase perceived risks and influence investment decisions.

He also highlighted gaps in energy market infrastructure, particularly in trading systems and risk management mechanisms.

According to Krukenberg, more developed energy markets use such systems to stabilize prices and improve efficiency, helping create a more secure environment for both investors and consumers, rather than for speculative activity.

As Cebu’s demand rises by an estimated 150 megawatts annually, experts pointed to battery energy storage systems (BESS) as a short-term solution to prevent outages.

Cruz explained that batteries play a crucial role in stabilizing the grid during sudden disruptions.

“If a power station goes down, batteries can support the grid for a certain period—maybe one to two hours,” Cruz said.

However, he clarified that batteries are not a long-term solution to supply shortages.

“They are not designed to replace baseload power plants. They simply shift energy,” he added.

Diosdado Sandulan of the National Grid Corporation of the Philippines (NGCP) reinforced this, noting that battery systems are primarily used for ancillary services and frequency regulation—not as primary energy sources.(CEBU NEWS)