The Department of Energy (DOE) is in discussions with President Ferdinand Marcos Jr. to reassess the Philippines’ goal of achieving 100% household electrification by 2028 amid funding challenges.
“Since the president is approaching the mid-term, it is a good time to review how realistic are both our targets and the funding available, and we can think of ways to make them more realistic,” said Energy Secretary Raphael P.M. Lotilla.
Lotilla revealed that achieving the electrification target requires an estimated PHP 85 to PHP 100 billion, but the current annual budget stands at only PHP 2 to PHP 3 billion.
The gap in funding not only hinders household electrification but also delays essential upgrades to backbone power lines, particularly in off-grid areas that have seen little to no infrastructure improvements for nearly 40 years.
“We are looking at ways and means to achieve the total electrification goal because the PHP 85 to PHP 100 billion estimate is intended not only to finance household electrification but also to improve backbone linings, especially in off-grid areas,” Lotilla explained.
Lotilla added that reaching the 2028 goal would require an average annual budget of around PHP 25 billion. However, the DOE faces uncertainty as Congress allocates funds annually, creating challenges for long-term planning.
The department emphasized that investing in electrification could yield an economic return of about PHP 500 billion, urging lawmakers to view the budget increase as a strategic investment in national economic growth.
