Unreliable power seen as drag on Cebu growth

ADVOCACY group Cebu Electricity Rights Advocates (Cera) called for a reassessment of Cebu’s energy strategy, warning that the province’s thin power reserves and reliance on waste-to-energy projects could undermine grid stability and public safety.

Cera convenor Nathaniel Chua said Cebu’s reserve margin frequently falls below the 200-megawatt safety buffer, heightening the risk of voltage instability and power disruptions that could affect businesses and essential services.

The group said Cebu’s growing electricity demand — estimated to increase by about 150 MW annually — requires faster development of reliable, island-based baseload power plants, rather than continued dependence on inter-island submarine cables and speculative projects.

Cera cited waste-to-energy (WTE) proposals as insufficient to meet Cebu’s long-term power needs, noting that a proposed WTE facility in Binaliw could contribute around 18 MW, covering only about 12 percent of a single year’s demand growth.

While acknowledging the need for a diversified energy mix, the group said economic expansion must be anchored on a stable, 24/7 baseload supply to ensure public safety and business continuity, including uninterrupted power for critical infrastructure such as water pumping stations.

Cera urged authorities to publish a clear, time-bound energy roadmap that prioritizes island-based generation projects and reduces reliance on external power sources.

The group also proposed a mandatory one-kilometer no-build zone around landfills and waste-to-energy facilities, saying stricter land-use rules are needed to prevent future safety and environmental risks.

Risks to investment

Meanwhile, Cebu’s private sector warned that tightening power supply and rising political uncertainty are becoming material risks to investment, particularly for manufacturers and export-oriented firms that rely on stable and competitively priced electricity.

Electricity demand in Cebu is growing by about 150 MW a year, outpacing the addition of new generation capacity, according to Mark Anthony Ynoc, president of the Mandaue Chamber of Commerce and Industry.

The increase reflects expanding industrial activity, population growth, and higher electricity consumption from commercial and digital enterprises across Metro Cebu.

“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 country’s main manufacturing and services hubs, depends heavily on the Visayas power grid, which business groups say is already operating with thin reserve margins during peak periods. Delays in bringing new plants online or unexpected outages could expose the island to power interruptions that raise operating costs and disrupt production schedules.

While several generation projects are in the pipeline, including baseload and embedded facilities, industry leaders cautioned these may not be sufficient to meet near-term demand growth.

Power constraints are especially critical for energy-intensive sectors such as electronics manufacturing, food processing and logistics, as well as data-driven industries that require uninterrupted electricity.

The supply risk is adding to broader investor concerns linked to political noise and regulatory uncertainty. Business executives said the Philippines is increasingly being benchmarked against regional peers such as Vietnam, Indonesia and Thailand, which continue to attract manufacturing investments through more predictable policies, faster permitting and aggressive infrastructure expansion.

“Investors compare locations side by side,” Ynoc said. “They look at power reliability, cost of doing business, infrastructure readiness and policy stability. If Cebu cannot guarantee these fundamentals, capital will simply go elsewhere.” / KOC