What is the status of Visayas and Mindanao’s energy security?
With more and more industries in the Visayas and Mindanao ranking as the top drivers of national growth, the regions are no longer emerging but actively contributing to the Philippines’ economic output. But with the path to progress already underway, a question arises: Is energy supply ready to meet their growing needs?
From policy shifts to infrastructure suggestions, the fourth edition of the “Powering up” Roundtable Discussions presented by Aboitiz Power Corporation (AboitizPower) and the European Chamber of Commerce of the Philippines (ECCP) examines how these regions can unlock their full potential through energy security.
The discussion was led by ECCP Energy Committee chairperson Ruth Yu-Owen. She was joined by fellow experts in the local energy sector: Atty. Monalisa Dimalanta, chairperson of the Energy Regulatory Commission (ERC); Professor Rowaldo “Wali” Del Mundo, associate dean of the College of Engineering at the University of the Philippines – Diliman; and Asec. Romeo Montenegro, deputy executive director of the Mindanao Development Authority.
Economic wins and losses
The discussion spotlighted the increasing energy demands of industries in the two regions. In Visayas, Prof. Del Mundo emphasized that parts of Region 8 and Cebu are seeing a surge in BPOs and data centers that require a massive and continuous energy supply.
“Hindi lang quantity yung hinaharap natin dito, yung quality,” he shared. “Kaya imprortante pagusapan yung growth ng economy ng Visayas at Mindanao, ang titigil diyan yung hindi natustusan yung energy sa pangangaliangan”
[It’s not just about the quantity of energy we’re facing here, it’s also about quality. That’s why it’s important to talk about the economic growth of Visayas and Mindanao, because it will all stop if we fail to meet their energy needs.]
Prof. Del Mundo also emphasized that Mindanao’s geography is a major advantage and could mirror the economic ascent of Vietnam if the right power systems are in place.
“Agricultural yung Mindanao. So para mas mataas yung value, para mas maganda ang mas maraming employment, mas malaking kita ng bansa, ay yung agricultural production dapat i-process doon mismo sa Mindanao,” Del Mundo shared. “Meaning magtayo ng maraming agroindustrial processing plants connected doon sa agricultural economy.”
[Mindanao is an agricultural region. So to increase its value, create more jobs, and boost the country’s income, agricultural products should be processed right there in Mindanao. This means building more agro-industrial processing plants that are connected to the agricultural economy.]
With VisMin serving as a powerhouse of agricultural progress, the discussion also touched on the “irony” that its farmers and fisherfolk remain among the poorest.
“Why? Because these are in areas that are unfortunately less electrified, less energized,” Asec. Montenegro explained. “We need to be able to have a better planning and forecasting of our energy requirements attuned to the realities of our economic growth [and] in our inherent ability to deliver agricultural productivity.”
History has already shown us what happens when power can’t keep up. Asec. Montenegro also mentioned that 10 years ago, Mindanao lost almost P2 billion due to power outages, costing the region not only revenue but also the momentum of its economic surge.
“That affected us a lot,” he said. “300-400 megawatt supply deficit resulted in two billion pesos losses. 13 hours brownout in Zamboanga, 13 hours in GenSan, 4 hours in some other areas, two hours in Davao.”
The discussion also touched on the Visayas’ unique position as having more islands than Mindanao. Atty. Dimalanta shares that Visayas heavily relies on energy imports from both regions: Mindanao exports around 400 megawatts daily to Visayas, while Luzon supplies an additional 100 megawatts. Its geographical makeup of scattered islands also makes electricity transmission more complex.
Ultimately, these insights paint a clear picture that Visayas and Mindanao are on their way to driving the country’s economic engine. But without adequate energy supply, transmission, and distribution systems in place, their growth and the millions in economic value they represent are at risk.
As the Philippines looks to solidify its energy future, investing in smarter and more resilient power infrastructure in VisMin is necessary.
Watch the “Powering up: Weathering calamities in the energy transition” roundtable episode 1 here:
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– Rappler.com
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