DOE Eyes PHP72-B Cost For PH Total Electrification Resulting In PHP315-B Economic Benefit

The Philippines needs approximately PHP72 billion to fund the government's goal of achieving 100 percent total household electrification by 2028, a move expected to yield PHP315 billion in economic benefits, according to the Department of Energy (DOE).

President Ferdinand R. Marcos Jr. has pledged to achieve full household electrification across the country by the end of his term.

DOE Undersecretary Rowena Cristina Guevara highlighted that over two million households in the country still lack electricity, necessitating the PHP72 billion investment.

A study conducted by the DOE and the Philippine Statistics Authority (PSA) estimates that total electrification will generate an economic impact of PHP315 billion, or about 1.8 percent of the country's gross domestic product (GDP).

Guevara explained that increasing electricity access for 16 to 24 hours a day could boost household income by up to 49.4 percent and expenditures by 52.2 percent.

Guevara noted, “Because of that, I can do business. And I can increase my income. And of course, I will spend more money. If we are able to do 100 percent total electrification of the country, the economic benefit is PHP315 billion pesos.”

The DOE has presented these findings to the Department of Finance (DOF) and the National Economic and Development Authority (NEDA), which have both endorsed the investment.

The government is considering securing a loan from the Asian Development Bank (ADB) or the World Bank to cover part of the PHP72 billion, supplementing the PHP3 to PHP5 billion annual budget allocation for the total electrification program.

President Ferdinand R. Marcos Jr. has pledged to achieve full household electrification across the country by the end of his term. As of March this year, the total household electrification level stood at 93.12 percent.

Guevarra affirmed that the National Electrification Administration, electric cooperatives, and the National Power Corporation are working to ensure the country reaches 100 percent electrification by 2028 as instructed by the President.