Cebu's energy infrastructure crucial for economic growth

Cebu is working to strengthen its energy infrastructure, which is vital for its economic growth. Reliable energy is crucial for attracting investments, supporting industries, and serving residents effectively. The Department of Energy (DOE) expects to add 6,841 megawatts (MW) of power capacity by 2025. Most of this capacity will be for Luzon, while 855 MW is planned for Cebu and the Visayas. Many new projects will focus on renewable energy. There is already increasing demand for electricity, especially as Cebu's demand has exceeded the national average. Cebu’s total power capacity is currently 1,123 MW, but demand peaked at 1,223 MW in May 2024. The government's projections show that energy demand will keep rising, making it essential to enhance power infrastructure. Energy Secretary Raphael Lotilla anticipates improvements starting in 2025 due to new power projects and transmission lines. Cebu plays a key role in the Central Visayas economy, which grew by 7.3% in 2023. However, the region must develop its own energy resources to avoid relying heavily on energy imports. Currently, more than half of Cebu's energy needs come from neighboring islands, putting its economic growth at risk. Baseload power sources, like coal and geothermal, are necessary to ensure a stable electricity supply. Meanwhile, the government has set goals to increase the share of renewable energy in the energy mix significantly by 2030 and 2040. Cebu is expected to see new energy projects in the coming years, including coal-fired power plants and solar energy initiatives. Projects like the expansion of the Therma Visayas plant and several solar facilities will enhance Cebu's power capacity. To maintain its economic momentum, Cebu must take strategic actions and invest in new energy solutions. Working together, government, energy providers, and industries can create a resilient energy landscape that supports growth and innovation in the region.