Philippines accelerates push to light up rural homes

By Sheldeen Joy Talavera, Reporter

OVER A MILLION households in the Philippines remain without electricity, a gap the government aims to close within the next three years.

Energy Secretary Sharon S. Garin said the Department of Energy (DoE) and National Electrification Administration (NEA) are deploying a mix of strategies to speed up household energization, including microgrid systems, solarized homes, and streamlined grid connections.

“Just a little more and we’ll be close to 100%,” she said in a speech last year. “For every one peso the government spends on electrification, we get four pesos in return. So, it’s an investment for us and for our children.”

During his fourth State of the Nation Address in July 2025, President Ferdinand R. Marcos, Jr. directed the DoE and NEA to accelerate efforts to fully electrify the country before the end of his term in 2028.

As of June 2025, about 28.27 million households have been energized, accounting for 94.77% of the projected households from the 2020 Philippine Statistics Authority census.

Luzon posted the highest electrification rate at 98.53%, followed by the Visayas at 95.78%, while Mindanao continues to trail at 83.81%, highlighting the difficulty of reaching last-mile communities.

Under the 2024-2028 National Electrification Roadmap, the government was targeting a 96.51% electrification rate by the end of 2025.

The DoE’s Electric Power Industry Management Bureau (EPIMB) said achieving full electrification by 2028 will require an estimated P80.9 billion, with around P68.26 billion expected from government financing and P12.64 billion from private investments.

The funds will cover household connections to existing grids, distribution line extensions, stand-alone home systems, and microgrid projects.

NEA Administrator Antonio Mariano C. Almeda said the agency expected rural electrification to reach 91.7% by the end of 2025, aiming for 94% by the end of 2026 with higher subsidies from Congress.

“With the increase in the budget, it requires an increase in engineers to validate, inspect, liquidate, and issue certificates of final inspection,” he said during a briefing in December, noting that the issue is being discussed with the Commission on Audit.

EPIMB said insufficient funding and subsidies make grid extension and off-grid projects difficult, particularly in areas where electrification is not commercially viable.

“Because rural electrification is often not profitable, private companies are hesitant to invest. The regulatory and institutional frameworks—tariffs, subsidies, and incentives—may not sufficiently offset risk,” the bureau told BusinessWorld.

Much of the work of electrifying last-mile communities has fallen to electric cooperatives and private utilities operating on the ground.

The Philippine Rural Electric Cooperatives Association, Inc. (PHILRECA), which represents cooperatives nationwide, said it is aligning its programs to support the government’s 2028 electrification goal.

“We are aligning all available mechanisms, projects, and assistance to ECs (electric cooperatives) in ensuring the attainment of total electrification by 2028,” PHILRECA Executive Director and General Manager Janeene Depay-Colingan said in a statement to BusinessWorld.

She noted that ECs face obstacles, including difficult terrain, limited infrastructure, high project costs, and logistical constraints, which require innovative and coordinated approaches.

PHILRECA said it is strengthening partnerships with government agencies, optimizing funding mechanisms, deploying modular and renewable energy solutions in off-grid areas, and enhancing the technical capacities of cooperatives.

MICROGRIDS, RENEWABLES
Manila Electric Co. (Meralco), which serves about 3% of the country’s land area, has also expressed support for the national agenda.

“The government’s target of achieving full electrification nationwide by 2028 is ambitious and critical for inclusive development — and Meralco is fully committed to supporting this agenda,” Meralco Executive Vice-President and Chief Operating Officer Ronnie L. Aperocho told BusinessWorld.

Meralco is expanding its role in off-grid electrification through microgrid projects. The company targets to energize more than 1,000 homes and businesses on Cagbalete Island in Mauban, Quezon, with a solar-plus-battery microgrid system and backup diesel generation.

“With the launch of the Cagbalete Microgrid, we reaffirm Meralco’s commitment to power progress with sustainable energy solutions, ensuring that no one is left in the dark,” Mr. Aperocho said.

Renewable energy and microgrids are seen as cost-effective solutions for off-grid areas. Many households in remote communities rely on diesel generators or kerosene lamps, which often incur higher and more volatile costs.

“It offers a way to step back from traditional grid extension, reduce reliance on diesel and imported fuels, improve resilience — especially given the country’s exposure to natural disasters — and support inclusive development,” EPIMB said.

Albert R. Dalusung III, energy transition adviser at the Institute for Climate and Sustainable Cities, said that renewable energy can help lower electricity costs for local communities.

He cautioned that efforts should focus not only on expanding coverage but also on delivering reliable power that enables economic activity.

“I think what is important is not just to target full electrification because it may be ‘full electrification,’ but you’re only delivering eight hours or less of electricity,” he said.