THERMA Visayas Inc. (TVI), a subsidiary of AboitizPower, broke ground Friday, Sept. 12, 2025, on the construction of Unit 3 at its Toledo facility, adding 150 megawatts (MW) of baseload capacity to the Visayas grid.
The expansion project, targeted for completion by 2028, will raise TVI’s total capacity from 300 MW to 450 MW.
Rhea Navarro, regional chief operating officer of AboitizPower’s Transition Business Group, said the project is designed to meet the region’s growing power demand and support Cebu’s economic expansion.
“Unit 3 is not just a power facility but an enabler of trade, jobs and inclusive growth for every Cebuano,” she said.
Navarro said Central Visayas’ economy has been expanding by an average of 7.6 percent annually, outpacing national growth, and driving up power demand by 4.6 percent each year. Department of Energy (DOE) projections show peak demand in the region rising to 2.9 gigawatts by 2026 and potentially 10.7 gigawatts by 2050, with Cebu expected to account for half.
“By boosting local supply, Unit 3 helps ease stretched reserves and ensures reliable electricity for Cebu’s 3.3 million residents, keeping hospitals running, businesses open and homes powered,” she said.
AboitizPower Transition Business Group COO Aldo Ramos said the expansion strengthens long-term energy security in the region.
He said while renewable energy is a key focus for AboitizPower, balancing it with dependable baseload capacity remains critical for grid reliability, protecting households, businesses and vital infrastructure.
“We refuse to let Cebu return to the days in 2013-2014 when we had the rotating brownouts when power was scarce, and unfortunately, progress has slowed down,” he said.
On Aug. 6, the Visayas grid was placed on yellow alert as peak demand hit 2,369 MW against available capacity of 2,538 MW, below the 200-MW safety buffer. It was one of several yellow alerts in recent months underscoring tight supply in the region.
Toledo City Mayor Marjorie “Joie” Perales welcomed the investment, saying the additional 150 MW comes at a crucial time for Cebu’s growing economy.
“This project is both timely and reassuring, reflecting confidence in our province and in the Visayas region,” Perales said. She cited TVI’s community programs and its role in fostering sustainable development.
The brownfield expansion will use existing site infrastructure, including the jetty, conveyor and switchyard, limiting new land use and falling under DOE exemptions to the moratorium on new coal projects.
TVI Unit 3 is expected to stabilize the grid during peak demand, reduce dependence on imported electricity and support Cebu’s core industries such as tourism, manufacturing, IT-business process outsourcing, real estate and infrastructure.
Analysts said brief power disruptions can carry heavy economic costs. A five-hour nationwide outage, for instance, is estimated to cause losses of about P556 million.
By combining this expansion with its renewable energy projects, AboitizPower said it aims to deliver a balanced, reliable and sustainable energy mix for the Visayas, supporting Cebu’s continued growth and resilience. / KOC