THE DEPARTMENT of Energy (DOE) said it would need at least a P72 billion budget to supply power to the entire country.
During the 16th U.S. Embassy Media Seminar held on July 8 in Iloilo City, DOE Undersecretary Rowena Cristina Guevara said in her presentation that more than two million households still do not have access to electricity.
“Last week, the Department of Energy, we presented to the National Economic and Development Authority and to the Department of Finance our request for P72 billion. If we are able to do 100% electrification in the country, the economic benefit is P315 billion, that’s 1.8% of our 2023 GDP,” Guevara said.
The National Electrification Administration, electric cooperatives, and the National Power Corporation are tasked to implement the total electrification program under the Philippine Energy Strategic Direction governed by PDP 2023-2028 and the DOE’s Philippine Energy Plan 2023-2050, which aims to “access affordable energy, reliability and resiliency, and clean and sustainable energy.”
Guevara mentioned that aside from the Department of Budget Management, a portion of the budget will also be loaned from either the World Bank of the Philippines or the Asia Development Bank.
“A portion only, kasi may budget naman tayo for total electrification, it’s about 3 to 5 billion budget per year, so ‘yung kulang nalang,” she said.
The fund will be utilized until 2028, technically used for the cost of distribution lines, the barangay and sitio electrification, and solar home systems for those far-flung homes.
She said the total electrification will economically benefit the country as increased electricity also means more increase in the income and expenditure of each household.
The Philippine Energy Plan 2023, which extends to 2050, seeks to increase the use of renewable energy and come up with an energy mix towards a clean energy scenario. This includes coal repurposing or regenerating coal and mixing it with biomass.
According to the Energy Regulatory Commission, there are 128 generation companies, and 188 renewable energy facilities: 108 in Luzon, 40 in Visayas, and 40 in Mindanao as of January 2024.
As of March 2024, a total of 1,329 renewable energy service contracts were awarded, with 137.7 gigawatts equivalent total potential capacity, and 5.8 gigawatts total installed capacity.
