Expansion of TVI continues, aiming to meet increasing power demands in Cebu

Revised Output

While the expansion of the Therma Visayas Inc. (TVI) power facility is full steam ahead, preparations for construction are currently in the works, as confirmed by Aboitiz Power (AP) top honcho Danel Aboitiz. This 150-megawatt (MW) TVI 3 is slated for completion in 2027, adding to the existing two units with 170 MW capacity each.

This expansion is expected to supercharge Cebu's power supply and support its continuous economic growth. In a recent media meeting, Aboitiz highlighted that Central Visayas is a hotbed of development, with a whopping 7.3% growth rate compared to the national average of 5.7%. With energy demand on the rise but limited options for boosting renewable capacity due to mountainous terrain and limited space, the additional baseload capacity from the TVI expansion becomes a well-timed solution to address the province's energy woes, particularly in addressing power supply gaps.

More details about the project's timeline and budget will be revealed by the end of the year, once progress has been made. It's worth noting that TVI obtained permits for the project even before the Department of Energy declared a moratorium on new coal-fired power plants in October 2020.

AP has earmarked the majority of Aboitiz Equity Ventures' P105 billion capital expenditure for 2025 to finance its renewable energy pipeline and its distribution business. AP's power generation segment remains the company's biggest earnings contributor, making up 80% of its Ebitda in 2024, solidifying its role as a key growth driver.

Distribution and retail electricity businesses followed, accounting for 12% and 4% of Ebitda respectively. Volume sales in its distribution utilities segment grew by 8% year-on-year, driven by commercial and industrial demand. Residential sales also rose by a robust 13%, reflecting increased consumption.

Aboitiz emphasized the company's persistent focus on diversifying its power portfolio through a pipeline of renewable energy projects and strategic mergers and acquisitions. Although TVI's older units were retired in 2015, and its oil/diesel plants were shut down in March 2024 due to aging infrastructure and operational struggles, AP's pursuit of LNG and renewables remains unwavering.

The business expansion of Therma Visayas Inc. (TVI) in the Philippines, specifically the TVI 3 power facility project in Cebu, aims to maintain its continuous economic growth in the region by addressing power supply issues, as highlighted by Aboitiz Power (AP) top honcho, Danel Aboitiz.
Despite a moratorium on new coal-fired power plants declared by the Department of Energy in October 2020, TVI had already obtained permits for the project.
In 2025, Aboitiz Equity Ventures will allocate the majority of its P105 billion capital expenditure to finance its renewable energy pipeline and its distribution business, signifying AP's commitment to cleaner energy sources.
AP anticipates robust growth in its power generation segment, contributing 80% of its Ebitda in 2024, while the distribution and retail electricity businesses follow closely, accounting for 12% and 4% of Ebitda respectively.
Aboitiz Power seeks to diversify its power portfolio through a pipeline of renewable energy projects and strategic mergers and acquisitions, ensuring a sustainable and balanced approach to power generation in the future.