DMCI Power Corporation (DPC) is seeking approval for a PHP 3-billion submarine power cable that would link Semirara Island in Antique to Mindoro, a project that is stated to have the potential to significantly lower the cost of supplying electricity to off-grid areas.

The proposed subsea cable could result in at least PHP 2 billion in annual savings by reducing payouts under the Universal Charge for Missionary Electrification (UCME), the Philippine News Agency (PNA) reports.. UCME is a fee paid by electricity consumers nationwide to subsidize power generation in areas that are not yet connected to the national grid. These include island provinces like Mindoro.

Speaking to reporters, DPC President Antonino Gatdula said the company is awaiting regulatory approval for the around 19–20 kilometer submarine cable, which would connect Semirara and Mindoro. A government decision is expected by the second quarter, with construction targeted to begin within the year if approved.

The project is being positioned as a faster alternative to larger grid interconnection plans. “We call it a bridge project. We don’t need to wait for the connection of Batangas and Mindoro to lower the cost of power in Mindoro. The fastest option is through Semirara and Mindoro, as this route has the shortest distance,” Gatdula said.

Mindoro currently faces power supply challenges due to its heavy reliance on diesel- and bunker fuel-fired power plants, which are also more expensive than other energy sources. Combined power demand in Occidental and Oriental Mindoro already exceeds 100 megawatts, pushing up generation costs that are only partly covered by UCME subsidies.

At present, DPC operates a 19.7-megawatt bunker fuel-powered facility in Oriental Mindoro and a 12.5-MW wind power project in Semirara Island, Caluya, Antique. The company has also proposed additional power developments in Semirara to support the planned connection project.

DPC is also proposing to develop more than 2,100 MW of additional capacity using a mix of coal, wind, and solar technologies, to further stabilize supply. “We need a strong baseload: 30 MW coal, and then the rest can be supplied using RE. And we will connect Mindoro and Semirara. And we will displace the bunker and diesel,” Gatdula explained.

The company added that it plans to tap foreign expertise for the construction of the submarine cable, pointing out the technical challenges of subsea power infrastructure. Gatdula also said proposed solar projects in Semirara would not affect agricultural land, as the area is classified as industrial.

Established in 2006, DPC focuses on supplying electricity to small and remote islands. It has 188.3 MW of installed capacity and operates thermal, bunker, diesel, and wind power plants in Masbate, Oriental Mindoro, Palawan, and Antique. DPC is a subsidiary of DMCI Holdings, Inc.

If approved, the submarine cable project could play a key role in easing UCME pressures, reducing subsidy costs shouldered by consumers nationwide, and improving power reliability in Mindoro — but will it be enough to address the long-term cost challenges of missionary electrification?

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