DOE in talks with PBBM to reassess 100% electrification program

The Department of Energy (DOE) says that it is in talks with President Ferdinand Marcos Jr. to reassess the country’s total electrification program, aiming to overcome funding hurdles.

“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 haze them or to make them more realistic,” said Energy Secretary Rapahel P.M. Lotilla. 

During the memorandum of agreement signing between the National Electrification Administration (NEA) and the Department of Education (DepEd), Lotilla said that approximately Php 85 to 100 billion is still needed to meet the country’s household electrification targets by 2028.

Lotilla also noted that the current annual budget averages only between Php 2 to 3 billion, indicating a significant gap in achieving full electrification.

The additional budget would not only support household electrification but also strengthen backbone power lines, particularly in off-grid areas and regions that have not seen upgrades to their infrastructure in nearly 40 years.

“So we are looking at ways and means in order to be able to achieve the total electrification goal because the 85 to 100 billion estimate is intended not only to finance the household electrification, but also to improve the backbone linings, especially in the off-grid areas,” said Lotilla.

When asked whether the total electrification program is still achievable by 2028, he stated that completing it would require an average annual budget of around Php 25 billion. However, since Congress allocates funds on a yearly basis, the department remains uncertain about securing the necessary financial support.

The energy department emphasized that investing in additional funding could generate economic returns of about Php 500 billion, urging Congress to view the proposed budget increase as a strategic move for national economic growth.

Discover how an investment in electrification could drive economic growth. Stay tuned to Power Philippines for all the details and updates.