DOE evaluates 100% electrification target amid funding woes

Amid concerns about available funds, the Department of Energy (DOE) is reassessing its target of achieving 100% household electrification by 2028.

According to Energy Secretary Raphael P.M. Lotilla, achieving complete electrification will require an average yearly budget of P25 billion. 

“As of the midpoint of the administration, the average budget has only been between P2 billion to P3 billion a year and therefore we have a long way to go before we can achieve that goal,” Lotilla shared.

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The road to total electrification

The 2023-2032 National Total Electrification Roadmap aims to achieve 100% total electrification through household electrification, distribution line extension, Stand Alone Home Systems (SAHS), and microgrid systems. 

Based on its June 2023 figures, the NTER estimates the country’s household electrification level at 91.1 percent, with 25.3 million households served out of a potential 27.7 million, based on the 2020 Census on Population and Housing. For the rest of 2023, the estimated number of unserved households was 2.45 million.

“We are looking at ways and means to achieve the total electrification goal because the P85 to P100 billion estimate is intended not only to finance household electrification but also to improve backbone linings, especially in off-grid areas,” Lotilla explained.

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A huge investment with huge returns

Lotilla also shared that investing in total electrification could yield economic returns amounting to P500 billion. “So it’s a huge investment, but it is also going to bring us huge returns,” he said.

The DOE cited a 2010-2018 study that showed a strong correlation between household electrification and economic growth. Using data from the Philippine Statistics Authority, the Department of Health, and the DOE, the study revealed that increasing a household’s access to electricity from 0 to 8 hours could boost income and expenditure by 17%; from 8 to 16 hours, by 33%; and from 16 to 24 hours, by 50%. 

Sources:

https://manilastandard.net/business/power-technology/314554825/doe-reviews-electrification-target-hikes-funding-requirement-to-p100b.html

https://www.bworldonline.com/economy/2025/02/06/651827/full-electrification-by-2028-goal-under-review-on-funding-doubts/

https://doe.gov.ph/announcements/2023-2032-national-total-electrification-roadmap

https://dailyguardian.com.ph/doe-eyes-reassessment-of-100-electrification-target/