Cebu companies banking on more power plants to meet demand
By Alena Mae S. Flores – February 5, 2024, 7:35 pm
from manilastandard.net
Business leaders in Cebu province are banking on additional supply and baseload reserves from the entry of new power plants to meet growing power demand.
Mandaue Chamber of Commerce and Industry (MCCI) incoming president Mark Ynoc said the adequate power supply is crucial in supporting economic recovery.
“Yes, we definitely do [need additional supply]. Cebu is a key player of growth in the country that stands out as the fastest-growing major Asian economy amid global challenge. It plays a vital role in various industries, from manufacturing to information technology and tourism,” Ynoc said.
“Ultimately, Cebu’s electricity rate is manageable. There are only few scheduled service interruptions. Mandaue City is an industrial and logistics hub. The whole island of Cebu is also driven by tourism. In that note, reliable and dependable electricity supply is quite a vital element in our recovery, in balancing the supply chain, and more especially in preparation for the forecasted arrival of investments and increase in population growth,” he said.
Ynoc said power disturbances create “unimaginable damages” to the economy.
“If there is a serious and dire demand for power, then we definitely need additional infrastructure to strengthen generation capacity,” he said.
He said power is also an important aspect in bringing foreign direct investors to Cebu.
The National Economic Development Authority previously identified the potential of Cebu for new investments in heavy and extractive industries, including shipbuilding and allied industries, automotive and parts manufacturing, aerospace parts, resource-based industries and fabricated metals.
“If there is a serious and dire demand for power then we definitely need additional infrastructure to strengthen generation capacity,” he said.
Businessmen expressed concern over Western Visayas’ blackout that cost billions of pesos in economic losses last month.
The Cebu business leaders expressed hope over new power plants following the Department of Energy’s issuance in December 2023 of certificates of endorsement for 21 projects for system impact study (SSI).
These include Therma Visayas Inc.’s 169-MW coal plant expansion in Toledo City.
“More power supply is always better,” said Cebu Chamber of Commerce and Industry president Charles Kenneth Co.
Meanwhile, former MCCI president Steven Yu said the economic impact of the possible power outages due to lack of electricity outweighs the environmental concerns about the use of coal.
“While we are scaling up on our RE [renewable energy] generation capacity, this will help stabilize our power supply versus demand and avoid costly blackouts. The negative environmental effects are being outweighed by the positive impact to the economy and other offsetting carbon reduction measures,” Yu said.
TVI’s expansion of the coal plant in Toledo City will use the same circulating fluidized bed (CFB) technology that is being used in Units 1 and 2 of TVI to minimize coal dust emissions that can harm the atmosphere.
