Finally, a road map for rural power development

Providing electricity to remote barangays was and continues to be a formidable task. Electrification programs since the 1960s had to contend with geographic barriers and financial constraints. Despite all the funds that have been poured into it, rural electrification has remained the biggest challenge for the government considering the issues that haunt the program implementation.

Intensifying rural electrification efforts in 1999, the government focused on the O Ilaw program and currently on the Expanded Rural Electrification Program to ensure that everything is on track. Positive results show the rate of rural electrification has doubled from 500 to 1,000 barangays per year, reducing the number of unelectrified barangays to 2,400 as of September 2006.

Majority of these villages, however, are considered "last mile" areas located in the remotest parts of the country where power grid extension is not technically and financially feasible. It also includes villages where daytime inhabitants pursue a livelihood such as farming, fuel-gathering or fishing but who go home to other barangays at night. Other "last mile" barangays are battle areas or frequented by natural disasters.

To address this problem, the Rural Power Project or RPP was designed consistent with the vision of the Electric Power Industry Reform Act of 2001 (EPIRA). It is the road map to full electrification of all barangays and households nationwide with greater emphasis on sustainability of the projects and enhanced greater private sector participation. With support from the World Bank and the Global Environment Facility, RPP seeks to provide adequate, affordable and reliable energy services through solar photovoltaic (PV) installations, and other renewable energy sources where grid connection is too costly.

But RPP refuses to become just like past government projects that started with a bang and then faded away into oblivion.

"This is a market-based program where we focus on the participation of the private sector and promote private-public sector partnership. A strong partnership is very crucial," said RPP project director Mylene C. Capongcol.

One of the innovative and decentralized electrification subprograms being introduced under the RPP is Project ACCESS — Accelerating Community Electrification Using Sustainable Solar. Under the Project ACCESS is the Sustainable Solar Market Packages (SSMP) which involves the clustering of barangays that will create a critical mass for any business undertaking. Specifically, SSMPs will be offered to eligible and qualified PV companies that can supply and install PV systems for community use and be able to market individual solar home systems to households. Microfinance institutions (MFIs) come in to provide the lending window to the households and communities. Their money is backed up by the Loan Guarantee Fund which will share their risk in financing the acquisition of solar systems by rural households.

"A distinct difference of RPP from other electrification subprograms is the social aspect for the less privileged. Electricity should be able to facilitate the livelihood of rural people so that they will be able to pay for it," she said.

Since subprojects under the RPP are not the usual government dole-outs, implementers such as the Department of Energy, Development Bank of the Philippines, Land Bank of the Philippines, local government units and other government agencies would have to ensure that the rural communities, NGOs, MFIs and solar providers have an active participation in its implementation. Capungcol said communities have to be convinced that PV installation is good for them because it gives them access to information, helps children do their homework at night, protects health of the people against respiratory diseases caused by kerosene lamp use, enhances peace and security in the areas, and other benefits. The recipient LGUs, on the other hand, have to ensure that the units in key public places such as school, health center, and streetlights work. For MFIs and solar providers, they need to secure the money they invest.

With community mobilization, social preparation, message development, and a strong government-private business-community partnership, RPP believes rural electrification will be complete by 2017.

At present, a solar PV system is being installed in a community in Higantes Island about five hours by land and pump boat from Iloilo City. Another one is being set up in Lanao, where in spite of security problems government and private workers are working hard to bring electricity to our Muslim brothers. Iligan City was the first to have complete rural electrification as solar PV work has been completed in the last two barangays of Panoroganan and Kalilangan. 

A total of 169 barangays in Mindanao will benefit from enhanced and revitalized solar PV electrification.