Wednesday, December 25, 2024

Business Chamber Launches Innovative Power Initiative Amid Regional Growth

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Business Chamber Launches Innovative Power Initiative Amid Regional Growth

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The Cebu Chamber of Commerce and Industry (CCCI) is establishing a pioneering “Power Alliance” initiative that addresses the growing energy demands of one of the Philippines’ key economic centers.

This development comes at a critical time as Cebu’s industrial and commercial growth continues to drive increasing power requirements, highlighting the importance of collaborative approaches to energy security in expanding economic hubs.

“We’re looking into expanding our Power Committee with this alliance to support sustainable economic growth through enhanced coordination between business stakeholders and energy sector partners,” said CCCI President Jay Yuvallos. “As businesses expand and new industries emerge, ensuring reliable and affordable power becomes increasingly crucial for maintaining competitiveness.”

The significance of this initiative is underscored by Department of Energy data showing Cebu’s current demand at 1,223 MW, compared to its local generation capacity of 1,123 MW. This 100MW deficit underscores two critical challenges for Cebu’s power security: first, the urgent need to expand reliable local generation capacity, and second, the region’s significant dependence on the broader Visayas transmission network, including interconnections with Luzon (via Leyte) and Mindanao.

Addressing both aspects—through increased embedded generation and enhanced transmission infrastructure—is imperative for sustaining Cebu’s economic momentum and maintaining its attractiveness as an investment destination.

Looking ahead, DOE projects Cebu Island’s peak demand to reach approximately 1,400 megawatts by 2026, reflecting the region’s rapid economic expansion. This growth in demand is part of the broader Visayas region’s projected increase from 2,464 megawatts in 2023 to 10,678 megawatts by 2050.

“Our Power Alliance aims to create a collaborative platform where businesses, power providers, and stakeholders can work together effectively,” Yuvallos explained. “This initiative reflects our commitment to supporting both large industries and MSMEs in their growth journey through reliable power infrastructure.”

The alliance will focus on fostering dialogue between business stakeholders and energy partners, promoting a reliable electricity supply that will support the growth trajectory of the province. With nearly 700, predominantly MSMEs, CCCI’s initiative demonstrates how business organizations can contribute constructively to addressing energy challenges.

“When we look at Cebu’s growth trajectory, particularly in manufacturing, hospitality, tourism, and IT-BPM sectors, reliable power infrastructure becomes fundamental to sustaining this momentum,” added Yuvallos. “According to NEDA estimates, ensuring reliable electricity and sustained economic development could help lift around 200,000 Cebuanos out of poverty. Our goal is to ensure that power supply can effectively support not just business expansion, but also the broader social development of our region.”