MANILA, Philippines — The Marcos administration wants to reassess its total electrification target to make it “more realistic,” as the government remains far from securing the necessary P100-billion funding.
“Since the President is approaching the midterm, it is a good time to review how realistic both our targets and the available funding are so that we can think of ways to hasten or to make them more realistic,” Energy Secretary Raphael Lotilla said.
Lotilla said he would discuss the country’s total electrification program with President Marcos in the next sectoral meetings to tackle the challenges the government is currently facing.
The Department of Energy (DOE) estimates that up to P100 billion is needed to power every household in the Philippines by 2028.
“But as of this midterm, the average budget has only been between P2 billion and P3 billion a year, and therefore, we have a long way to go before we can achieve that goal,” Lotilla said.
As such, he said the DOE is “looking at ways and means” to meet the nationwide electrification target at the household level.
Latest DOE data showed that the country’s electrification rate is only around 92 to 93 percent, with Mindanao lagging behind at just over 70 percent.
Lotilla, however, remains hopeful that the Philippines can still achieve 100 percent household electrification by the end of Marcos’ term, urging lawmakers to rally behind the initiative.
“It would take an average of around P25 billion a year to finish it. Congress appropriates on a yearly basis, so we don’t know if there will be sufficient funds to support,” Lotilla said.
According to Lotilla, the multibillion-peso budget will not only finance household electrification but will also enhance transmission lines, especially in off-grid areas.
“Once that (program) is implemented, it will have returns of P500 billion to the entire economy,” he pointed out.
Earlier, Energy Undersecretary Rowena Cristina Guevara said over 200 areas in the country need microgrid system developers.
A microgrid system is a localized energy network with “clearly defined electrical boundaries that act as an integrated power generation and distribution system, whether or not connected to a distribution or transmission system.”
“These underserved and unserved households represent communities that have long been left behind in our nation’s energy development journey, yet hold so much potential for economic growth if given access to electricity,” Guevara said.
Unserved areas are those that have no access to electricity, distribution system lines, home power systems or any microgrid system, while underserved areas refer to currently served areas where power supply is less than 24 hours daily.