Power industry leaders warned that rising electricity demand in the Visayas is outpacing the pace of new capacity additions, raising concerns over energy security, investment risks, and infrastructure gaps in the coming years.
The issue took center stage at PowerForward Visayas 2026, an energy forum organized by The Freeman and Banat News, and co-presented with Aboitiz Power, where stakeholders outlined key challenges and opportunities for the region’s power sector.
“I think the biggest challenge really is keeping pace with the power demand,” said Rhea Navarro, regional chief operating officer of Aboitiz Power. She noted that electricity demand in the Visayas is growing by about 150 megawatts annually, equivalent to one power plant each year.
However, bringing new capacity online typically takes around three years, creating what she described as “an imbalance” between supply and demand as the regional economy expands.
Despite these pressures, the Visayas is ahead of national renewable energy targets, with about 45% of its power mix coming from renewables, according to panelists. But sustaining this momentum while ensuring reliable and affordable supply remains a challenge.
Jay Joel Soriano, vice president and head of strategy and planning at First Gen, said addressing the issue requires a broader systems approach.
“It’s not just one single thing. It’s really a systems view,” he said, pointing to the need to balance supply expansion, grid modernization, and growing consumer participation as more businesses gain the ability to choose power suppliers.
From an investor perspective, regulatory stability remains a key concern.
“When I’m putting forward proposals to my board… the question has been asked: what’s the country risk? What is the regulatory risk?” said Bernd Krukenberg, president and CEO of Shell Energy Philippines. “You take a decision, and then you have a time horizon — 15 years, 20 years.”
He said consistent policy signals are critical to attracting long-term investments in the sector, particularly as the Philippines navigates global uncertainties and evolving energy policies.
Government officials said reforms are underway to improve the investment climate, including allowing 100% foreign ownership in renewable energy projects and streamlining approval processes.
Still, developers flagged persistent bottlenecks such as right-of-way issues, permitting delays, and limited transmission capacity across islands, which restrict the efficient distribution of power.
“That’s really a signal that we cannot export renewable energy out of Leyte. And that’s a shame,” Soriano said, referring to curtailment issues despite growing solar capacity.
Rising construction costs are adding further pressure, particularly for renewable projects in remote areas that require additional infrastructure.
“It’s not just putting up a power plant,” Soriano said, noting the need to build roads and other facilities alongside generation assets.
Navarro said the region must carefully balance the shift to cleaner energy with the need for reliability and affordability.
“We have to be pragmatic… we still need baseload, reliable baseload,” she said, emphasizing its role in supporting economic growth.
She added that policymakers and industry must address the “energy trilemma” of security, sustainability, and affordability, particularly in a country where a significant portion of the population remains price-sensitive.
Stakeholders said stronger coordination across agencies, continued grid investments, and demand-side solutions such as energy efficiency and rooftop solar will be critical to ensuring a stable and sustainable power supply for the Visayas.
Cebu Business News
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