Energy stakeholders warned of mounting pressure on power supply in the Visayas over the next few years, citing rising demand, policy uncertainty, and infrastructure bottlenecks as key risks to securing the region’s energy future.
The concerns were raised during PowerForward Visayas 2026, an energy forum organized by The Freeman and Banat News, and co-presented with Aboitiz Power.
“I think the biggest challenge really is keeping pace with the power demand,” said Rhea Navarro, regional chief operating officer of Aboitiz Power.
She said demand in the Visayas is growing by about 150 megawatts annually, or roughly “one unit of a power plant” that must be made available each year.
Navarro said the mismatch is difficult because new power plants typically take about three years to bring online, while demand continues to rise.
“There’s an imbalance there,” she said, noting the need to support the growing economy while capacity expansion remains limited.
Jay Joel Soriano, vice president and head of strategy and planning at First Gen, said the Visayas is already ahead in the energy transition, with renewables accounting for about 45% of its power mix.
But he said the challenge is sustaining that momentum while meeting rising demand.
“It’s not just one single thing. It’s really a systems view,” Soriano said, citing the need to plan the right energy mix, modernize the grid, and keep consumers informed as more businesses gain the ability to choose their electricity supplier.
Bernd Krukenberg, president and CEO of Shell Energy Philippines, said investors need clearer policy signals and regulatory stability before committing capital to long-term energy projects.
“When I’m putting forward proposals to my board… the question has been asked: what’s the country risk? What is the regulatory risk?” Krukenberg said. “You take a decision, and then you have a time horizon — 15 years, 20 years, whatever technology you have.”
He cautioned against abandoning clean energy targets too easily, even as policymakers consider short-term responses such as lifting the coal moratorium.
“Don’t throw overboard the targets too easily,” he said, adding that the industry must work together toward “building a sustainable future.”
DOE 7 Director Renante Sevilla said the government is seeking to improve the investment environment through policy measures, including allowing full foreign ownership in renewable energy projects and digitizing some processes for energy developers.
Developers, however, said bottlenecks remain. Soriano cited right-of-way issues, local permits, grid access, and transmission constraints as key hurdles.
He said curtailment of geothermal production in Leyte, even as solar capacity builds up, shows the difficulty of moving renewable power across island grids.
“That’s really a signal that we cannot export renewable energy out of Leyte. And that’s a shame,” Soriano said.
Panelists said rising construction costs are also making new projects harder to deliver.
Soriano said renewable energy projects often require supporting infrastructure such as roads because they are built in remote areas. “It’s not just putting up a power plant,” he said.
Navarro said the region must balance reliability with the shift to cleaner power.
“We have to be pragmatic,” she said. “We still need baseload, reliable baseload, and it plays a very important role in economic development today.”
She said power planning must address the “energy trilemma” of security, sustainability, and affordability.
“Power needs to be affordable, because if we are to support sustainable development, we also don’t want to leave people who are poor… behind,” Navarro said.
Panelists said stronger coordination among government agencies, clearer policy direction, grid upgrades, and demand-side solutions such as energy efficiency and rooftop solar will be crucial to meeting the Visayas’ growing power needs.
Business News Asia
