Government faces P70 billion gap for 100% electrification

MANILA, Philippines — Powering every Filipino home is still P70 billion out of reach, with next year’s budget covering only less than 10 percent of the funding needed to reach the target before President Marcos’ term ends.

“As proposed in the NEP (National Expenditure Program), it’s probably only around P5 billion (in 2026), and actually, we need about P69 billion or P70 billion,” Energy Secretary Sharon Garin said in an interview.

Despite the meager budget allocation for next year, Garin affirmed that the Department of Energy (DOE) remains confident that the country would achieve total household electrification by 2028.

“I think there will be ways to fund that eventually. I think it’s already being discussed at the Executive (Branch) where the funds will come from, but there’s a way to reach that,” she noted.

The National Electrification Administration (NEA), in particular, would be focused on expanding electricity access to more households nationwide, Garin said.

The energy secretary is likewise counting on the potential of solar power systems in homes to accelerate the government’s electrification efforts.

Based on latest DOE data, around 5.25 percent of households across the country still have no access to electricity, most of which are in Mindanao.

The electrification rate in Mindanao lagged at 83.45 percent, well below the 98.84 percent for Luzon and 95.23 percent for the Visayas.

“The concentration will be more on Mindanao because that’s where the far-flung places without electricity still are. That’s why most of the budget that will come in, most of that will be sent to Mindanao and electric cooperatives,” Garin said.

In his fourth State of the Nation Address, Marcos said about 200 power plants are expected to be completed within the next three years.

These facilities, he added, would have the capacity to power four million households, more than 2,000 factories and nearly seven thousand businesses.

“The DOE and NEA will work to catch up and fulfill the targeted number of households to be connected to electricity this year until 2028,” Marcos said.

For 2026, the DOE is proposing a budget of P3.84 billion to fund its projects and programs, including total electrification, nuclear energy development and energy efficiency initiatives.